The penalty for late filing of Income Tax Returns has increased from 1st April 2018, as per section 234F. Let’s find out what section 234F is all about: –
What is section 234F?
Earlier, Section 234E was the one which used to deal with the issues related to Penalty for late filing of Income Tax, but from 1st April 2018 a new section has been introduced for this purpose.
Section 234F, generally talks about the fees for default in furnishing income tax return: –
- Without prejudice to the provisions of this Act, where a person is required to furnish a return of income under section 139, fails to do so within the time prescribed in sub-section (1) of said section, he shall pay, by way of fee, a sum of, —
(b) Ten thousand rupees in any other case:
The only catch here is that if the total income of the person does not exceed five lakh rupees, the fee payable under this section shall not exceed one thousand rupees.
- The provisions of this section shall apply in respect of return of income required to be furnished for the assessment year commencing on or after the 1st day of April 2018.
- If the late filing is done between 1st August to 31st December 2018, then in that case the taxpayer will have to pay a penalty of Rs. 5000.
- If the late filing is done after 31st December 2018, then in that case the taxpayer will have to pay a penalty of Rs. 10,000.
- If the taxpayer has an annual income of Rs. 5Lakh or less, then in that case the taxpayer is liable to pay a penalty of Rs.1000.