A new section 234F has been inserted in Income Tax Act, 1961 with effect from Assessment Year 2018-19 (Financial Year 2017-18).
The fee (penalty) will be as follows:
| Total Income | Return filed | Fee (Penalty) |
| Exceeds Rs. 5 Lakh | On or before 31st December of Assessment Year but after due date | Rs. 5,000/- |
| In any other case | Rs. 10,000/- | |
| Upto Rs. 5 Lakh | After due date | Rs. 1,000/ |
Example:- 1
Mr. X , having total income of Rs. 8 lakh, filed his Income-tax return for Assessment Year 2018-19 (Financial Year 2017-18) on 17/12/2018. What will be the fee (penalty) under section 234F?
Since the Income-tax return is filed after due date (31/08/2018), but on or before 31/12/2018, fee (penalty) will be Rs. 5,000/-
Example:- 2
Mr. Y, having total income of Rs. 6.5 lakh, filed his Income-tax return for Assessment Year 2018-19 (Financial Year 2017-18) on 07/02/2019. What will be the fee (penalty) under section 234F?
Since the Income-tax return is filed after due date (31/08/2018) and after 31/12/2018, fee (penalty) will be Rs. 10,000/-
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