People filing ITR online now slapped with Section 234F late fee, likely due to bugs

People filing income tax returns today are facing fresh set of issues, as the new income tax returns filing website is charging taxpayers late fee from today, that is August 1. This seems to be because of some issue or bug in the income tax website as the tax department had already extended the deadline to file the ITR till September 30. Yet, people who filed their income tax returns on August 1 or later, have been penalised Rs 5,000 under Section 234F of the income tax.

Section 234F of the income tax was introduced on April 1, 2017 and makes the taxpayers liable to a maximum penalty of Rs 10,000 if they file the income tax returns beyond the deadline. The section applies to all categories of persons -individual, HUF, AOP, BOI, company, firm etc.

While the government has extended date to file income tax returns, the website apparently has not been updated to reflect it. This is why a lot of users have apparently been charged Rs 5,000 penalty. According to the guidelines by the income tax department, people with an annual income under Rs 5 lakh have to pay a penalty of Rs 1,000 for filing the income tax returns by December 31 while those with an income above that, are penalised Rs 5,000.

The income tax filing portal has been facing a lot of glitches lately and this seems to be the latest addition in the long list. So, in case you filed the income tax post July 31 and have been charged Rs 5,000, there is no need to panic. The issue should be resolved withing next few days by the income tax department.

“The company managing the income tax website has already accepted the glitches in it. The levy of penalty may be due to one of these technical glitches. Since CBDT gas extended individual ITR filing date to September the penalty should not be levied,” Jitender Solanki, SEBI registered financial adviser told India Today Tech.

The government had decided to extend the deadline for filing income tax return or ITR last month in view of the current Covid-19 situation, giving some relief to the taxpayers. However, no relief was provided on the penal interest charges that a taxpayer is supposed to pay if there is an outstanding tax liability, whether under self-assessment tax or advance tax.

The taxpayers will still have to pay interest in case of delay in paying tax under three sections—234A, 234B and 234C—of the Income Tax Act, 1961. Section 234A is levied in case of delay in filing ITR and levies a 1 per cent rate per month on the tax amount due. It’s worth mentioning that even if the ITR is delayed by few days, interest is charged for the full month under this section.

Written by 

Leave a Reply

Your email address will not be published. Required fields are marked *