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Section 234F

Introduction:

A new section has been inserted in Income Tax Act, 1961 with effect from Assessment Year 2018-19 (Financial Year 2017-18).

Under this section, fee (penalty) is levied if the Income-tax return is not filed within due date. Earlier penalty for delay in filing of return was levied at the discretion of Assessing Officer. But now, the same is payable before filing of Income-tax return.

Explanation:

Where a person is required to furnish a return of income u/s 139, fails to do so within the time prescribed u/s 139(1), then he shall be liable to pay a sum of –

  • Five thousand rupees, if the return is furnished on or before the 31st December of the relevant assessment year,
  • Ten thousand rupees in any other case.
Provided that if the total income of the Assessee does not exceed five lakh rupees, the fee payable shall not exceed one thousand rupees.

Tabular representation:


Total Income Return Filed Fee (Penalty)
Exceeds  Rs.5 Lakhs On or Before 31st December of relevant Assessment Year but after due date u/s 139(1) Rs. 5,000/-
In any other case Rs. 10,000/-
Upto Rs. 5 Lakhs After due date Rs. 1,000/-