29 January 2020
From F.Y 17-18, a new Section 234F was introduced. This section imposes fees on delayed/late - filing of Income Tax Return. This penalty would be levied in addition, to the existing Interest u/s 234A for late filing of income tax return.
According to the Income Tax Act, the amount payable under sec 234F is termed as late fees. But,it has been observed that in common parlance, many of us are designating the amount under sec 234F as the penalty instead of fees, which is not the case. The reason being that, this fee is steeper in nature in which the assessing officer has no role in deciding its applicability. It is automatically applied after the due date. There is a provision for the income tax department will adjust the excess TDS deducted (which you would have received by the way of refund) in the payment of late fees under section 234F.