₹5,000/₹10,000 fees for late filing of Income Tax Return from AY 2018-19

Finance Act 2017 inserted a new section, 234F. The applicability of this section begins from the assessment year 2018-19, i.e., FY 2017-18.

According to this section, if a person is liable to file Income Tax Return (ITR) as per section 139 (who and how are liable is discussed below) defaults in filing of ITR by way of delaying in filing ITR has to pay a penalty amount in the name of fees.

This fees would be ₹5,000 if the return is filed after due date but upto 31st December.

This amount will be increase to ₹10,000 if the return is filed after 31st December. The last date of filing of belated ITR for AY 2018-19 is 31st March, 2019.

But to give relief to small assessees, persons having Total Income not exceeding ₹5,00,000 will be liable to pay under this section no more than ₹1,000 in any case.

Who and how are liable to file ITR

There is a common misconception among people specially for the case of Individuals that if an individual is required to pay tax then only liability to file ITR is arised.

But this is not true. Every company and firm is compulsorily required to file ITR. While in the case of other than company and firm, a person is liable to file ITR if the person's Total Income exceeds maximum limit not chargeable to tax before taking effect of exemptions under section 10(38) [long term gains on equity shares, equity oriented fund or a unit of a business trust], section 10A, section 10B and allowing deductions under chapter VI-A.