Section 234F Fee for default in furnishing return of income

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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	31^st July of relevant AY	31^st 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	30^th November of relevant AY	30^th November of relevant AY
Sec 139(4)	Belated Return	31^st March of relevant AY	31^st December of relevant AY
Sec 139(5)	Revised Return	31^st March of relevant AY	31^st 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 31^st December of relevant AY	Rs 5,000/-
Above Rs. 5,00,000/-	Rs 10,000/- after 31^st December of relevant AY	Rs 5,000/-