Section 234F Fee for default in furnishing return of income

Sec 234F of Income Tax Act 1961
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Section 234F Fee for default in furnishing return of income

Section 234F of Income Tax Act 1961 (Inserted vide Finance Act 2017) (Amended vide Finance Act 2021)

⇒ If the taxpayer fails to furnish the return of income within the prescribed due date under section 139(1) then a fee/penalty for default in furnishing return of income under section 234F shall be levied.

⇒ If the taxpayer is not liable to file a return of income and is filing the return of income on a voluntary basis then a penalty under section 234F will not be levied.

⇒If the taxpayer files the return of income within the prescribed due dates or extended due dates then a penalty under section 234F will not be levied.

Due dates for furnishing return of income prescribed u/s 139

Section

Return of Income Before the amendment of Finance Bill 2021

After the amendment of Finance Bill 2021

Sec 139(1)

Taxpayers who are not required to get books of accounts audited u/s 44AB

31st July of relevant AY 31st July of relevant AY
Taxpayers who are required to get books of accounts audited u/s 44AB 31st October of relevant AY

31st October of relevant AY

Taxpayers to whom provisions of transfer pricing are applicable

30th November of relevant AY 30th November of relevant AY

Sec 139(4)

Belated Return 31st March of relevant AY

31st December of relevant AY

Sec 139(5)  Revised Return 31st March of relevant AY

31st December of relevant AY

Quantum of fee/penalty under section 234F

If the taxpayer files the return of income after the prescribed due dates or after the extended due dates then a penalty under section 234F will be levied.

Total Income

Before the amendment of Finance Bill 2021

After the amendment of Finance Bill 2021

Up to Rs 5,00,000/-

Rs 1,000/- Rs 1,000/-
Above Rs. 5,00,000/- Rs 5,000/- up to 31st December of relevant AY

Rs 5,000/-

Rs 10,000/- after 31st December of relevant AY

Note: The amendments made in Finance Bill 2021 shall be effective from the assessment year starting from 1st April 2021.

 

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About CA Ankita Khetan 166 Articles
Ankita is a Chartered Accountant in practice and holds a Diploma in IFRS (from ACCA, UK). She is also a Commerce PG and Certified Independent Director (from IICA). She holds a certification in Forex and Treasury Management. Her area of expertise is GST and Income tax. She is passionate about reading, writing, and sharing knowledge on areas related to finance and taxation.

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