Section 234F: Penalty for Late Filing of ITR

By Hiral Vakil on March 13, 2019

In Budget 2017, the government inserted a new section under the income tax act to penalize late filers of a tax return. From FY 2017-18, in case of delay in filing of a tax return by an individual whose income exceeds basic exemption limit penalty is levied u/s 234F.

Penalty for late filing of ITR depends on the total income earned by a taxpayer during the year.


Total Income

Late Filing Fees

Up to Rs. 2,50,000


Rs. 2,50,000 to Rs. 5,00,000

Rs. 1,000

Above Rs.5,00,000 (Return is filed on or before 31st December of the assessment year)

Rs. 5,000

Above Rs. 5,00,000 (Return is filed after 31st December of the assessment year)

Rs. 10,000

Let’s take an example to understand it better:

Ajay is a salaried individual and he forgot to file his return for FY 2017-18. His total income for a year is Rs. 7,20,000. TDS on his salary income has been deducted by his employer. And he decided to file his return on 12th March 2019.

In this case, even though TDS has been deducted from his income. Ajay will be penalized with late filing fees of Rs. 10,000. Since his income is more than Rs. 5,00,000.