Late filing fee and penalty on delay in filing Income Tax return

Late filing fee is going to be a reality now under Income tax. Until now even if you filed your return late, there was no mandatory late filing fee levied on your delay filing of returns.

However this has changed  from assessment year 2018-19 (financial year 2017-18) and now you have to pay late filing fee if you do not file your return within due date.

In order to make sure that people file their return on time, section 234F is introduced to levy late filing filing fee on assessee who do not file returns on time.

Minimum late filing is Rs. 1,000 and maximum is Rs. 10,000.

Who need to pay late filing fee on late filing of income tax return?

Every assessee who file his return after due date has to pay late filing fee, regardless of his tax liability. However amount of late filing fee depends on amount of total taxable income.

Fee structure depends on total income of tax payer.

For example, a taxpayer with total income below Rs. 5 lakhs has to pay Rs. 1,000 and others have to pay upto Rs. 10,000.

How much late filing will be charged on returns filed late?

The fee depends on quantum of total income and also on date the return is filed.

If return is filed after due data but before 31st December, then late filing fee will be Rs. 5,000 otherwise late filing fee will be Rs. 10,000

If you file your retrun after December then you have to pay 10,000 and if if you file your return before 31 December but after due date (31 July) then late filing fee will be Rs. 5,000.

However, if your total income is below Rs. 5 lakhs then maximum late filing fee will Rs. 1,000.

For your reference Due dates as per income tax are given below.

Particulars Due Date
Due date if books of accounts are audited  30 September
Due date if books of accounts are not audited  31 July
Due if section 92E applicable 30 November

Below is the late fee you have to pay.

Late filing date Fee to be paid
Return filed after Due date but before 31 December of year  5,000
Return filed after 31 December 10,000
If total income does not exceed 5 lakhs during the year 1,000

How to pay late filing fee?

You have to use tax payment form for paying fee. In challan you can see the penalty and fee columns, fill amount in those columns and pay the amount.

As of now it works even if we pay interest or penalty along with tax, I believe same should continue for late fee.

How to avoid late filing fee?

You cannot avoid late filing fee. You can avoid penalty because penalties can be removed, there is no provision to waive late filing fee by assessing officer.

The only way to avoid late filing fee is by filing your return on time.

Conclusion

It is advised that you file your returns on time to avoid any kind of fee or penalty.

Your tax liability will increase if you are not filing your IT returns on time.

If you have any doubts or queries, login and ask your question. I will be happy to help you.


Author
Posted by Pulkit Sharma under Income-Tax

A Chartered Accountant by qualification. I am founder of KnowyourGST.com to provide free resources to enable smooth compliance by Tax Payers. You can use GST Invoicing application developed by m...Contact



6 Comments


Akash jain

Was Knowing Little About it but thanks for being descriptive


Pulkit Sharma

Thank you Akash. Please share it with others, as first late fee will charged starting coming assessment year.


Gagan Jain

Hello Pulkit Sir
Does it mean once anyone started to file ITR then he/she need to compulsory file it through out his/her life?


GST Payer

Hi Gagan
Late filing fee is if you are filing the return. If you are not filing return means no return. Only when it is compulsory to file return, you need to file otherwise not required.


Ashishkumar Sharma

Sir,
I if any Financial Year my Taxable income with in Threshold Limit and I does not file return. It it require to Pay Penalty and net Financial year I file Return in Time.
In such situation is I require to Pay Penalty


Pulkit Sharma

@Ashish
You need to pay late filing fee only in case you are filing your return late. If your income is below limit then you are not required to file income tax return so no question of late fee comes.


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