Taxpayers must file their income tax returns (ITR) by July 31 each year. The Income Tax Department gives a 4-month period to prepare and file your income details correctly.
If you miss the deadline, you might have to pay a penalty or late fees, and there can be other problems from the delay. Section 234F of the Income Tax Act deals with these penalties for late filing of tax returns in India.
This guide explains everything you need to know about Section 234F according to the Income Tax Act of 1961.
Key Dates for ITR Filing for FY 2023-24 (AY 2024-25)
The last date to file your income tax return (ITR) for the assessment year 2024-25 (FY 2023-24) was July 31, 2024. If you missed this date, you might face late fees, penalties, and other legal issues.
Here are the due dates for different groups:
| Particulars | Due Date (FY 2023-24) |
| Individuals and entities not needing a tax audit | July 31, 2024 |
| Taxpayers required to do a tax audit (except transfer pricing) | October 31, 2024 |
| ITR filing for taxpayers involved in transfer pricing | November 30, 2024 |
| Due date for revised or late returns | December 31, 2024 |
Understanding Section 234F of the Income Tax Act
Section 234F of the Income Tax Act was introduced in 2017. It states that if someone must file an Income Tax Return (ITR) but doesn’t do it on time, they have to pay late fees when they finally file their ITR.
The amount of the fee depends on their total income.
Who It Applies To: Section 234F applies to taxpayers including the following groups:
- Individuals
- Companies
- Firms
- Associations of Persons (AOP)
All these groups must pay a penalty under Section 234F if they do not file their ITR on time.
Who Needs to File an Income Tax Return?
You must file your income tax return if you meet any of the following conditions:
- Income Exceeds Basic Exemption Limit: If your total income is above the basic exemption limit, you must file an ITR. This limit varies under the old and new tax regimes. Note: If you miss the July 31, 2024, deadline, you can only file under the new regime.
- Assets outside India: You must file if you have any assets located outside India (including financial interests in companies), have signing authority on any foreign accounts or you are a beneficiary of assets located outside India.
- Bank Deposits: If you deposit Rs 1 crore or more in one or more current accounts during the previous year, you need to file your return.
- International Travel: If you spent more than Rs 2 lakh on travel to foreign countries for yourself or others in the previous year, you must file.
- Electricity Bill: If your annual electricity bill is more than Rs 1 lakh, you need to file a return.
- Gross Receipts from Profession: If your total gross receipts from your profession exceeded Rs 10 lakh in the previous year, you must file.
- TDS and TCS Amount: If your total Tax Deducted at Source (TDS) and Tax Collected at Source (TCS) was Rs 25,000 or more during the previous year, you are required to file. For senior citizens (60 years or older), this threshold is Rs 50,000.
- Business Turnover: If your total sales, turnover, or gross receipts exceeded Rs 60 lakh in the previous year, you must file your return.
- Savings Bank Deposits: If your total deposits in one or more savings bank accounts during the previous year were Rs 50 lakh or more, you need to file.
Late Filing Fees under Section 234F: What You Need to Know
- Total Income Over Rs. 5 Lakhs: If your total income is more than Rs. 5 lakhs and you file after the due date, the fee is Rs. 5,000.
- Total Income Rs. 5 Lakhs or Less: If your total income is less than or equal to Rs. 5 lakhs and you file after the due date, the fee is Rs. 1,000.
- Total Income Below Exemption Limit: If your total income does not exceed the exemption limit, no late filing fees apply.
Example: A is a super senior citizen with a Gross Total Income (GTI) of Rs. 4,95,000 for FY 2023-24 (AY 2024-25). Since he is filing late but his income does not exceed the exemption limit, no late filing fees will be charged.
How to Calculate Late ITR Filing Fees Under Section 234F
Here’s a breakdown of the fees based on different incomes and filing dates:
| Total Income | Return Filing Date | Amount of Fees | Reason |
| Rs. 3,40,000 | 30/06/2024 | NA | Return filed before the due date |
| Rs. 2,20,000 | 31/07/2024 | NA | Income is below Rs. 2.5 lakhs |
| Rs. 4,00,000 | Not filed | Rs. 1,000 | Income is below Rs. 5 lakhs |
| Rs. 8,50,000 | 15/11/2023 | Rs. 5,000 | Income is above Rs. 5 lakhs |
Steps to Pay Late Fees under Section 234F
To pay the late filing fee under Section 234F, follow these steps:
- Use Challan No. 280: This is the form for paying income tax.
- Select Payment Type: Choose Self Assessment (300) as the type of payment.
- Fill in the “Others” Column: In the “Others” column, enter 234F to specify the reason for the payment.
Make sure to complete these steps accurately to ensure your fee is processed correctly.
Tips to Avoid Late Fees Under Section 234F
To avoid late fees for your income tax return (ITR) under Section 234F, follow these tips:
- File on Time: Make sure to file your ITR before the due date for the relevant assessment year.
- File a Belated Return: If you miss the deadline, you can still file a belated return by December 31 of the relevant assessment year. This can help you avoid penalties.
- Claim Tax Refunds: If you are eligible for a tax refund, file your belated return to claim it.
Start the process now to stay compliant and minimize any fees!
Frequently Asked Questions (FAQs) on Section 234F
In this FAQ section, we’ll answer some common questions regarding the penalties under Section 234F and provide guidance on what steps you can take if you’ve missed the deadline.
Can You Get a Waiver for Late Fees Under Section 234F in Genuine Cases?
No, late fees under Section 234F are mandatory and cannot be waived by the Income Tax Department. However, if you have a genuine reason for the delay, you can file a condonation request. In this request, explain the unavoidable circumstances that caused the delay in filing your ITR. While there’s no guarantee of waiver, it’s worth submitting your request.
Can Excess TDS Be Used to Offset Late Fees Under Section 234F?
Yes, if excess Tax Deducted at Source (TDS) has been deducted from your income, the Income Tax Department will adjust this amount against the late fees under Section 234F. This means any refund due to you can be used to offset the late fees.
How Amendments in Section 234F Affect Intimation Under Section 143(1)
There has been a change in Section 143(1) to align with Section 234F. Now, the fee payable under Section 234F will be included in the calculations for any amounts payable or refunds due when processing your return.
Is Section 234F Considered a Fee or a Penalty?
The amount payable under Section 234F is officially termed a late fee, not a penalty. However, many people refer to it as a penalty because it is automatically applied after the due date, without any discretion from the assessing officer.
Missed the ITR Filing Deadline? Here’s What You Need to Know!
If you missed the ITR filing deadline of July 31, 2024, don’t worry! You can still file a belated return until December 31, 2024. E-filing is quick and easy—often taking less than 4 minutes. The AI-enabled DIY ITR filing portal can automatically select the right ITR form and pre-fill 90% of your information to make the process smooth and effortless.
What is Section 234F of the Income Tax Act, 1961?
Section 234F states that if a person is required to file a return of income under Section 139 but fails to do so by the due date, a late fee is applicable. The fee is:
- Rs. 5,000 if the return is filed on or before December 31 of the assessment year.
- If the total income does not exceed Rs. 5,00,000, the late fee shall not exceed Rs. 1,000.
- If your income is below the basic exemption limit, no late fee will be charged.
What are the consequences if I don’t file my Income Tax Return after paying all due taxes?
If you don’t file your ITR, even after paying taxes, the Income Tax Department may issue a notice of non-compliance and impose late filing fees under Section 234F.
If my income is Rs. 4,65,000 and I file my return after the due date (31st July), what will be the fee under Section 234F?
The late fee will be Rs. 1,000 since your income is below Rs. 5,00,000.
Will I face penalties under Section 234F if I have filed my return but not e-verified it?
Yes, if you do not verify your ITR, it is treated as if you haven’t filed it. Consequently, you will be liable to pay the penalty as per your income slab.
I have income from my salary with TDS deducted by my employer. Will I still incur late fees under Section 234F?
Yes, you will incur late fees under Section 234F if your salary exceeds the basic exemption limit, even if TDS has been deducted.
I am a retired person with income from Bank Fixed Deposits and TDS has already been deducted. Do I still have to pay late fees under Section 234F?
Yes, you will still be subject to late fees under Section 234F if your total income exceeds the basic exemption limit, regardless of TDS deductions.
My income is Rs. 3, 25,000 and I have a deduction under Section 80C of Rs. 1,50,000, bringing my income to Rs. 1,75,000. Will Section 234F still apply?
Yes, Section 234F will apply because your income before deductions exceeds the basic exemption limit. A late fee of Rs. 1,000 will be applicable if you file a belated return.
If my income is below Rs. 2, 50,000 and I file a return voluntarily after the due date, do I need to pay a late fee?
No, you will not have to pay any fees under Section 234F as your income is below the exemption limit.
If I file a belated return, will interest under Section 234A also be charged along with the fees under Section 234F?
Yes, both will apply if you owe tax. However, if there is no tax payable, only the late fee under Section 234F will be charged, and interest under Section 234A will not apply.
What happens if my total income exceeds Rs. 5, 00,000 and I file the return after the due date?
Your return will be processed by the Income Tax Department as per normal provisions after e-verification, and applicable fees will be levied.
Is there an exemption from late fees under Section 234F for senior citizens?
No, there is no exemption for senior citizens; the same late fee conditions apply to all individuals.
What is the difference between Section 234F and Section 234E of the Income Tax Act?
Section 234E imposes late fees for delays in submitting TDS returns, while Section 234F imposes late fees for filing income tax returns after July 31.
What does Section 139 of the Income Tax Act 1961 state?
Section 139 outlines the various types of income tax returns that can be filed by different assessees, including mandatory returns, voluntary returns, loss returns, and belated returns.
What is Section 271F of the Income Tax Act?
Section 271F previously imposed penalties for failure to file an income tax return by the end of the relevant assessment year, but it was abolished in April 2017 when Section 234F was introduced.
What does Section 234D of the Income Tax Act entail?
Section 234D levies interest on excess tax refunds given to an assessee. If an excess refund is issued, interest at 0.5% per month is charged on the overpaid amount.
What is the interest under Section 234A?
Section 234A charges interest for delays in filing income tax returns at a rate of 1% per month.
What are the charges for filing an income tax return?
Income tax returns can be filed for free through self-assessment. However, if you need consultation for tax planning, nominal fees may apply.
