Better be aware of filling income tax return on time, Income tax penalty under section 234F is introduced from the financial year 2017-2018.
In this article, we understand the consequences and impact of filling late income tax return.
Although filling income tax is not a big deal:
What is section 234F of the Income Tax Act?
In Budget 2017, a new section is introduced fee u/s 234f:
Under this section, “if the taxpayer is required to file income tax return and also entitled to fill the return, but doesn’t fill in the prescribed time limit“. He/She is entitled to pay the penalty.
Then The taxpayer is bound to pay the penalty u/s 234F, which is by default calculated in the form.
Penalty for late filing of the income tax return
If the taxpayer files their return after the due date, income tax penalty under section 234F will be levied according to the below scenario.
If the taxpayer net taxable income is above ₹ 5 Lakhs, there are two scenarios:
- Filling of Income Tax return after 31st July till 31st December force taxpayer to pay the penalty u/s 234F of ₹ 5000.
- Filling of Income Tax return after 31st December till 31st March force taxpayer to pay the penalty u/s 234F of ₹ 10000.
If the taxpayer net taxable income is below ₹ 5 Lakhs, then the penalty will not exceed ₹ 1000.
The reason behind the introduction of Section 234F?
Income Tax department introduced this section to bring awareness among taxpayers to fill the return in time and the reduced time allow for the making of an assessment under various sections.
Currently, u/s 271F the assessee office possess the power to the levied penalty for ₹ 5000 for the late filing of the income tax return to the individual, this section is replaced from FY 2017-18 by section 234F.
It is better to fill the return on time and avoid the penalty, there is no reason to fill income tax return so late.
So it is better to be on time and be a wise person and improve your credit rating.
Also Read: What is Form 15G Form 15H?