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Section 234f

Last Updated 27th Jan 2022

  • Section 234f of income tax act was amended in April 2017 and the amended act made ITR filing compulsory
  • As per new regulations of section 234f, every individual who fails to pay his taxes on time will attract penalties.
  • The penalty ranges anywhere between ₹ 1,000 to ₹ 10,000.
  • Besides the penalty fee, an interest of 1% will be charged.
  • It is mandatory to file income tax returns under Section 234f of the Income Tax Act.
  • An individual is liable for tax if he/she earns more than ₹ 2.50 Lakh yearly.
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Section 234f of Income Tax Act

Every earning individual of India is subject to taxation. Filing income tax returns is mandatory under Section 234f of the Income Tax Act. Not filing the income tax returns will bring penalties. According to the income tax regulation, individuals earning a gross income of ₹ 2.50 Lakh are liable for taxation. That being given, every citizen is expected to file their taxes at the end of every financial year. The taxpayers file for details regarding their earnings, tax exemptions that they might be eligible for, rebates that they are likely to receive and finally the net tax that they are endowing in the hands of the government.

A couple of years back there were not any severe repercussions for failing to file your taxes within the stipulated time period. But the scenario has changed with the changes brought about in the section 234f of income tax act in 2017. When you are unable to pay the taxes within the given date you are liable to attract a penalty under the provisions of this Act. Note that the final date for filing ITR for the assessment year 2020-21 has been extended to 10 January 2021. You become liable under this Act if you do not do the following.

  • File the income tax within the set deadline under the provisions of 139.
  • File for income tax late or haven’t filed for it at all.

It is important to remember that this section of the act is applicable to all sections of individuals such as firm, company, individual, BOI, HUF, AOP and so on, only if the tax returns are not filed within the given date. Also, the main reason that section 234f was enacted was to ensure that individuals file for their taxes on time.

Penalty for Late Filing u/s 234F

As stated earlier, failure to file for the income tax on time attracts penalties and fee us 234f. This law has been made mandatory since 1st April 2017. Filing for the income tax after the deadline has passed can attract a penalty as high as ₹ 10,000. Moreover, if you file for the income tax after January 10, 2021 but prior to March 31, 2021, you will be liable to pay a fee of ₹ 10,000. The Income-tax Department has come up with some waivers for the small-scale taxpayers, earning below ₹ 5 Lakh. For these taxpayers, the highest penalty charged is not more than ₹ 1,000. You can read the table given below for a better understanding.

ITR Penalty details
Date of filing Net income lower than ₹ 5 Lakh Net income higher than ₹ 5 Lakh.
Up to January 10, 2021 0 0
Within January 10, 2021 to March 31, 2021 ₹ 1,000 ₹ 10,000

Reduced Time for Revising Your Return

It can be possible that you have made a mistake while filing for the income tax which needs to be amended. As per new regulations of section 234f of income tax act, you are eligible to make the corrections until the end of the applicable year of the assessment. Prior to new provisions, the taxpayers had a time of two long years to make the changes and refile it. But after the enactment of the new provisions, the window for resubmission has been reduced to one year, from the ending of the fiscal year. However, there is no limit regarding the number of times you can file for a revision of the income tax.

You can either choose to file amendments in the actual form or choose a new form for filing the changes. After filing the changes, it becomes legit and the previous ones are not considered valid anymore. However, you can only file for the revision if the previous incorrect records filed were accidental.

Note that, it is important to file for your taxes at the early stages, because the sooner you file for the taxes the more time you get to make any changes if there are any mistakes.

Payment of Interest in ITR Late Filing

According to the provisions of section 234f of income tax act if you fail to file for taxes either on or within the stipulated time period then you are liable to pay the penalty at the interest rate of 1% monthly, besides the usual penalty charges. The calculation of the interest component is based on the last date of filing the returns until the date when the return was actually filed by you. The more you defer to pay the taxes the more will be the amount of interest you have to pay besides the standard penalty fee.

Delay in Revealing Funds 234f Income Tax

It may be possible that you have paid a surplus amount of tax and you are applicable for a return from the government. Hence, it is important that money is paid back by the government. In order to get the refund, you have to file for a return. The sooner you file for the return the faster you will receive the refund.


What is Section 234f?

Section 234f of income tax imposes penalty fees on an individual who has failed to pay taxes within the due date of the fiscal year. According to the new regulations under this act, it is now compulsory to pay your income taxes on time or you will be liable to attract a penalty that can go as high as to ₹ 10,000.

Is 234f applicable for nil return?

As per the new provisions of Section 234f, you will not be liable for a penalty if your net income is beneath the limit of exemption or if the returns are nil. The Act holds true only when your income is above ₹ 25,000 per month.

How do I pay late fees for ITR?

The procedure of filing for the late fees of ITR is similar to the procedure of filing for the income tax return. If in any case, you have missed out on filing your tax returns you can file for the return before the closing of the given financial year.

What if I have not filed a tax return?

Under the new regulations of the section 234f of the income tax, it is mandatory to file your returns within or before the stipulated date. If you forget to file the tax return on time then you will have to pay a penalty of maximum ₹ 10,000,along with a 1% interest rate from the due date till the date of filing the income tax.

Does the IRS forgive tax debt after 10 years?

The Internal Revenue Service usually has a decade in hand to collect the taxes which remain unpaid. However, once the ten years are over, the tax debts are entirely forgiven and washed off from the records of the taxpayer. This provision of the IRS is not very popular among taxpayers as it will give potential taxpayers a way out to not pay their taxes on time.

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