Belated ITR filing: If you have missed the deadline of filing income tax return for FY 2021-22, July 31, 2022, then you have an option to file the belated ITR.

Not filing your ITR within the deadline can lead to a penalty or late filing fees, besides inconveniences attached to the delay. Section 234F covers everything about late filing fees and the condition in which it becomes applicable. In this guide, we have covered each and every aspect related to the applicability of section 234F as per Income Tax Act 1961. Read carefully to avoid being the victim of section 234F penalty.

Check how to file updated ITR if you have received a notice

What is the meaning of Section 234F?

As per section 234F of the Income Tax Act, if a person is required to an file Income Tax Return (ITR forms) as per the provisions the of Income Tax Law [section 139(1)] but does not file it within the prescribed time limit then late fees have to be deposited by him while filing his ITR form. The quantum of fees shall depend upon the time of filing the return and the total income.

Who will be covered under the scope of 234F?

All persons including individuals, HUF, Company, Firm, AOP etc. will be covered under the scope of Section 234F of Income Tax Act 1961. All persons will be liable to pay late filing fees when the Income Tax Return is filed after their respective due dates.

What is the amount of fees that can be levied under 234F by the Income Tax?

(A). If your total income is more than 5 Lakhs & return is filed after the due date, Fee = Rs. 5000

(B). If the total income is less than or equal to 5 Lakhs & return is filed after the due date, Fee = Rs.1000.

(C). If the total income does not exceed Rs. 2.5 Lakh, No late filing Fees applicable

Example: A is a super senior citizen. His Gross Total Income for F.Y. 2021-22 is Rs. 4,95,000/- He is filing a late return. Whether late filing fees be levied?

In the above case, late filing fees u/s 234F shall not be levied since A is a super senior citizen and his GTI does not exceed the basic exemption limit.

How to pay 234F Fees?

Step 1: Challan No. 280

Step 2: Type of payment - Self assessment (300)

Step 3: Fill 234 F amount in column "Others"

Under which section shall the fees under section 234F will be paid if you have missed the deadline for filing ITR?

The fees u/s 234F shall be payable under section 140A (Self-Assessment Tax). A consequential amendment has been made in section 140A to include that in case of delay in furnishing of return of income, along with the tax and interest payable, the fee for delay in furnishing of return of income shall also be payable.

What was the penalty before section 234F was introduced?

Before the introduction of sec 234F, the penalty for failure to furnish the return of income was leviable under section 271F.

As per this section, if the income tax return was not filed before the end of the relevant assessment year, then the Assessing Officer, at its discretion may levy a penalty amounting to Rs. 5,000/- However, this section has been withdrawn from the assessment year 2018-19 and onwards after coming of penalty under section 234F into force.

How to avoid paying the fees under section 234F to the Income Tax Department?

In order to avoid payment of late fee u/s 234F, one needs to file the income tax return on time in respect of every assessment year :-) Visit tax2win for hassle free ITR filing.

Can the late fees u/s 234F be waived of in the genuine cases?

No, fees u/s 234F are mandatorily applicable. Therefore, it cannot be waived off by income-tax authority.

Can excess TDS deducted be adjusted from the fees u/s 234F?

Yes, the income tax department will adjust the excess TDS deducted (which you would have received by the way of refund) in the payment of late fees under section 234F.

Will the impact of amendment under section 234F come on the intimation under section 143(1)?

A consequential amendment in section 143(1) has been done in consonance with the introduction of sec 234F. Now, the fee payable under section 234F would also be considered in the computation of the amount payable or refund due, as the case may be, on account of processing of the return.

Is 234F a fee or a penalty?

According to the Income Tax Act, the amount payable under sec 234F is termed as late fees. But,it has been observed that in common parlance, many of us are designating the amount under sec 234F as the penalty instead of fees, which is not the case. The reason is that, this fee is steeper in nature in which the assessing officer has no role in deciding its applicability. It is automatically applied after the due date.