What is Sec.234F ? | Late fees on ITR filing after due date for AY 2018-19. Part-1

In Budget 2017 our honorable Finance Minister, Mr. Arun Jaitley introduced a new section 234F to ensure timely filing of returns of income. As per section 234F of Income Tax Act, if a person is required to file Income Tax Return (ITR forms) as per the provisions 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 total income.

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

What is the quantum of Fee levied under section 234F?
A person making delay in furnishing return shall be liable to pay fee of

Rs 5,000 – If return is furnished upto 31st December of assessment year

Rs 10,000 – If return is furnished after 31st Dec (i.e. from 1st Jan to 31st March of the relevant assessment year)

However, if the total income of the person filing the return does not exceed Rs 5 Lakhs the fee payable shall not exceed Rs 1000.

What was the reason for the introduction of penalty as per Section 234F?
In view of improving tax compliance, it is important that the income tax returns are filed within the due dates specified in section 139(1). Therefore, section 234F has been inserted in the Income Tax Act. Further, the reduced time limits proposed for the making of an assessment under various sections are also based on pre-requisite that returns are filed on time.

The Most Comprehensive Guide on the New Income Tax Section 234F
Click Here...
https://tax2win.in/guide/section-234f

Calculator on Section 234F
Click here...
https://tax2win.in/tax-tools/late-fil...

Fees For Delay In Filing Income Tax Return U/S 234F
For Read Click...
https://blog.tax2win.in/fees-for-dela...

How to pay 234F penalty?
Click here for read...
https://blog.tax2win.in/how-to-pay-23...

LIKE and SUBSCRIBE
If you like the video, please LIKE and SHARE it with your friends on social sites.
Subscribe to this channel so that you do not miss out on the new videos on this series.

Connect Us:
  / tax2win  
  / tax2win