“Those who are always late end up paying the price for their procrastination.”
There is always a price to pay for being late. Similarly, the Income Tax Department also penalises late filers for filing their tax returns late after the due date. In Budget 2017, the government inserted a new section, 234F under the Income Tax Act to levy a late filing fee.
What is Section 234F?
As per Section 234F of the Income Tax Act, if a person is required to file an Income Tax Return (ITR) as per the provisions of the Income Tax Law [section 139(1)] but does not file it within the prescribed time limit then late fees have to be deposited by them while filing their ITR form.
Further, the total fees will depend on the taxpayer’s overall earnings.
Who falls under the purview of Section 234F?
The following people fall under the purview of section 234F of the Income Tax Act. Hence, if they miss the deadline to file the ITR, they will be liable to pay the fees.
- Association of Persons (AOP)/ Body of Individuals (BOI)
- A Local Authority
- Every Artificial Judicial Person not covered above
Fees for Late Filing of ITR u/s 234F
The quantum of the fees depends on the Taxable income of the taxpayer.
Let’s take an example to understand it better:
For e.g., Akash is a salaried individual and he forgot to file his return for FY 2022-23. His total income for a year is INR 7,20,000. His employer has deducted TDS from his salary income. He filed his return on 31st October 2023.
Note- The due date to file the return for FY 22-23 was 31st July 2023.
In this case, although TDS has been deducted from his income, Akash will be penalized with a late filing fees of INR 5,000 since his income is more than INR 5,00,000.
How to Pay Fees u/s 234F?
Taxpayers can pay the late filing fees from the IT Portal
Select the type of payment as “Self Assessment (300)” and enter the late filing fees amount in the “Others” column (taken as ₹5000 based on the example above) as can be seen below.
After the tax payment has been successfully completed a challan receipt will be generated with all the required details. Mention the BSR code and the challan number whilst filing the return.
There might be a probability that there is a balance Tax Credit where excess TDS is deducted. Taxpayers can use the same excess TDS deducted to adjust it against the late filing fees of 234F.
No, taxpayer cannot file ITR without paying the fees. However, if they submit the ITR without paying fees, return will be declared as defective and hence chances of receiving notice or intimation of a defective return.
The due date for filing ITR is 31st July of the Assessment Year for non-audit cases and 31st October of the Assessment Year for audited cases.
– Taxpayers earning income between INR 2.5 Lakh to INR 5 Lakh will have to pay a fine of INR 1,000
– Taxpayers earning income above INR 5 Lakh will have to pay a fine of INR 5,000
No, since the return is filed late after the due date, taxpayers cannot carry forward the losses to set off against income in future years.