penalty for late filing of income tax return sec 234f

Penalty for late filing of Income Tax Return – Sec 234F


Last Updated on July 15, 2020 by Ravi Sankar Robbi

Penalty for late filing of Income Tax Return – Sec 234F

Late filing of income tax return (ITR) attracts penalty under sec 234F of Income Tax Act, 1961.

The due date for filing of the income tax return for the individuals and other assessees not covered under the audit is 31st July of the relevant assessment year.

However, for the financial year 2018-19 income tax department has extended the due date for filing from 31st July, 2019 to 31st August, 2019.

Page Contents

Penalty for late filing- How much??

If you are liable to file the tax return, it is highly recommended to file it before the due date. A new section 234F has been inserted in the Budget 2017 to levy the late fee for filing beyond the due date.

  • A Late fee of Rs. 5000 is levied if the return is filed after the due date but before the 31st day of December of the relevant assessment year. So, if you file the return between 1st September, 2019 to 31st December 2019 late fee is Rs. 5000.
  • Rs. 10,000 will be levied if your return is not filed before 31st December, 2019. So if you file it between 1st Jan’2020 to 31st March’2020 applicable late fee is Rs. 10,000.

But, any person whose net income (i.e. Gross total income less deductions) is less than or equal to Rs. 5,00,000 then late fee leviable is Rs. 1000 only.

Benefits of filing within due date !!

Save on late Fee – Up to Rs. 10,000

  • Any person who files his income tax return on time can get away from the late fee of Rs. 10,000 imposed by the department. Unlike the other interest and penalties under income tax, late fee under sec 234F is fixed and it will be levied once the due date is over. Hence, even if the assessee files the return on 1st September, 2019 (i.e. after the due date of filing for AY 2019-20) also is liable to pay the late fee accordingly.

Get Faster Refund

  • Filing within due date also enables you to get a faster refund, if you have a refund of tax (i.e. TDS deducted is more than your tax liability). And also department will pay you interest on your refund from the beginning of the assessment year i.e. from 1st April 2019 onwards.

Carry forward your losses

  • You can carry forward losses only if you file your income tax return online. Otherwise you will lose the benefit. Generally most of the salaried individuals who are having a housing loan for their self-occupied property and if the interest payable on such loan is in excess of Rs. 2,00,000 in the previous financial year, they can set-off the excess portion of such interest in the current year provided if you file your return on time.

So decide yourself either to lose your hard-earned money by missing the due date or to hold it tight by filing it before 31st August, 2019.   

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