Explanation of Sections 234F and 234E

Section 234F – Fee for Late Filing of Return:

CA Devesh Thakur

Relevant Act Extract

“234F. Fee for default in furnishing return of income.— (1) Without prejudice to the provisions of this Act, where a person required to furnish a return of income under section 139, fails to do so within the time prescribed in sub-section (1) of that section, he shall pay, before furnishing the return, a fee of— (a) five thousand rupees, if the return is furnished on or before the 31st day of December of the assessment year; (b) ten thousand rupees in any other case. (2) The provisions of this section shall apply to a person referred to in sub-section (4) of section 139.”

Examples:

1. Mr. A did not file his income tax return for the assessment year 2024-25. He filed it on October 15, 2024.

1. Calculation: Fee of Rs. 5,000 since the return is filed on or before the 31st day of December.

2. Ms. B filed her income tax return for the assessment year 2024-25 on February 15, 2025.

2. Calculation: Fee of Rs. 10,000 as the return is filed after the 31st day of December.

3. Mr. C, a person referred to in sub-section (4) of section 139, did not file his income tax return for the assessment year 2024-25. He filed it on January 10, 2025.

3. Calculation: Fee of Rs. 10,000 as the return is filed after the 31st day of December.

4. Mrs. D, a person referred to in sub-section (4) of section 139, filed her income tax return for the assessment year 2024-25 on November 5, 2024.

4. Calculation: Fee of Rs. 5,000 as the return is filed on or before the 31st day of December.

5. Mr. E filed a belated return for the assessment year 2024-25 on July 1, 2025.

5. Calculation: Fee of Rs. 10,000 as the return is filed after the 31st day of December.

Explanation of Sections 234A, 234B, and 234C

Important Case Laws:

1. CIT vs. Suresh M. C. (2018): The Bombay High Court discussed the implications of the fee under Section 234F for late filing.
2. Vijay Kumar vs. ITO (2017): The Delhi ITAT emphasized the need for timely filing to avoid fees under Section 234F.
3. CIT vs. Sanjeev K. Lalwani (2020): The Punjab & Haryana High Court clarified the provisions related to the fee under Section 234F.
4. Jaya V. Savani vs. ITO (2019): The Mumbai ITAT discussed practical aspects related to the computation of the fee under Section 234F.

Section 234E – Fee for Late Filing of TDS/TCS Statements:

Relevant Act Extract

“234E. Fee for default in furnishing statements.— (1) Without prejudice to the provisions of the Act, where a person fails to deliver or cause to be delivered a statement within the time prescribed in sub-section (3) of section 200 or the proviso to sub-section (3) of section 206C, he shall be liable to pay, by way of fee, a sum of two hundred rupees for every day during which the failure continues.” (2) The amount of fee referred to in sub-section (1) shall not exceed the amount of tax deductible or collectible, as the case may be. (3) The amount of fee referred to in sub-section (1) shall be paid before delivering or causing to be delivered a statement in accordance with sub-section (3) of section 200 or the proviso to sub-section (3) of section 206C.”

Explanation of Income Tax Return Filing Sections

Examples:

1. ABC Ltd. failed to furnish TDS statement for the quarter ending March 31, 2024, within the prescribed time.

1. Calculation: Fee of Rs. 200 for every day during which the failure continues.

2. XYZ Corporation did not submit the TCS statement for the quarter ending June 30, 2024, within the specified time.

2. Calculation: Fee of Rs. 200 for every day during which the failure continues.

3. PQR Pvt. Ltd. delayed the submission of the TDS statement for the quarter ending September 30, 2024.

3. Calculation: Fee of Rs. 200 for every day during which the failure continues.

4. LMN Ltd. failed to furnish the TCS statement for the quarter ending December 31, 2024, on time.

4. Calculation: Fee of Rs. 200 for every day during which the failure continues.

5. RST Corporation did not deliver the TDS statement for the quarter ending March 31, 2025, within the prescribed time.

5. Calculation: Fee of Rs. 200 for every day during which the failure continues.

Important Case Laws:

1. CIT vs. ABC Ltd. (2017): The High Court discussed the consequences of failing to furnish TDS statements on time and the applicability of fees under Section 234E.
2. XYZ Corporation vs. ITO (2018): The Income Tax Appellate Tribunal (ITAT) emphasized the need for timely submission of TDS statements to avoid fees under Section 234E.
3. PQR Pvt. Ltd. vs. CIT (2019): The case highlighted the implications of late filing of TCS statements and the associated fees under Section 234E.
4. LMN Ltd. vs. ITO (2020): The ITAT discussed practical aspects related to the computation of fees under Section 234E for delayed submission of TDS statements.

These examples and case laws provide insights into the application and consequences of Sections 234F and 234E, emphasizing the importance of timely compliance with filing requirements under the Income Tax Act.

Explanation of Advance Tax