Late filing of income tax returns: Mandatory fee applicable for Assessment Year 2018-19

Late filing of income tax returns: Mandatory fee applicable for Assessment Year 2018-19

By Mr. Suresh Surana, RSM Astute Consulting Group 

Section 234F is a new provision introduced by the Finance Act, 2017 which states that fees shall have to be paid mandatorily for late filing of income-tax returns.

However, this section will come into effect from Assessment Year (AY) starting on or after April 1, 2018.

As such, it will be applicable from AY 2018-19 and not from AY 2017-18.

However, penalty for failure to furnish return of income under section 271F up to Rs. 5,000 may be levied in respect of assessment year 2017-18 if return is filed after the end of the relevant assessment year.

Suresh Surana, RSM Astute Consulting Group

Mr. Suresh Surana is founder of RSM Astute Consulting Group.

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