In the last budget, government has decided a maximum fee of Rs. 10000 for belated filing of Income tax return. But as the said fees applies with effect from April 1, 2018, taxpayers filing return for the financial year 2016-17 need not worry.

The provision of the late fees being charged to the maximum of Rs. 10000 forms part of the newly included section 234F in the Income Tax Act. The fees shall be charged if the tax return has been filed after the due date in accordance with the section 139(1) of the Income Tax Act.

Further, depending on the delay in return filing, the relevant fee shall be charged. A fee of Rs. 5000 shall be charged in case the return is filed after the due date but before December 31 of the assessment year. In the other case when the assessee files the return after December 31 of the relevemt assessment year.

As a waiver to those earning less than Rs. 5 lakhs, the government has made the provision of a maximum penalty of Rs. 1000.

So, to make it more clear, return for the financial year 2016-2017, which have to be filed in the assessment year 2017-18 do not fall in the scope of the new section 234F. As against in the current regime, the assessing office at per his discretion charges a penalty of Rs. 5000, in the case when the assessee fails to file the return before the completion of the relevant assessment year.

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