Section 234F of Income Tax Act - Latest Updated 2025

Filing your income tax returns on time is important in India. The government has rules to make sure people follow tax laws. Section 234F of the Income Tax Act is one such rule that deals with late filing of income tax returns (ITR).

Section 234F of Income Tax Act puts a fee on taxpayers who miss the due date for filing their returns. This section was added to the law in 2017. It aims to encourage people to file their taxes on time.

This article will explain Section 234F of Income Tax Act in simple terms. We will look at the fees, who has to pay them, and how to avoid them. Understanding Section 234F of Income Tax Act can help you plan your taxes better and avoid extra costs.

What is 234F of the Income Tax Act?

Section 234F of Income Tax Act is a rule that sets fees for late filing of income tax returns. The government added this section to the Income Tax Act in 2017. It came into effect from the assessment year 2018-19.

Under Section 234F of Income Tax Act, if you file your ITR after the due date, you must pay a fee. The fee amount depends on your income and how late you file. The normal due date for most people is July 31 each year.

While planning your finances, check your eligibility for a Bajaj Housing Finance Home Loan. You may already be eligible, find out by entering your mobile number and OTP.

Late fee penalty

The late fee under Section 234F of Income Tax Act varies based on your total income:

• For income above Rs. 5 lakh: The fee is Rs. 5,000 if you file after the due date but before December 31.
• For income below Rs. 5 lakh: The fee is Rs. 1,000 if you file after the due date.
• For income below Rs. 2.5 lakh: No fee applies.

After December 31, the fee increases to Rs. 10,000 for those with income above Rs. 5 lakh.

Scope of section 234F

Section 234F of Income Tax Act applies to all types of taxpayers who must file income tax returns. This includes:

• Individual taxpayers
• Companies
• Firms
• Hindu Undivided Families (HUFs)
• Association of Persons (AOPs)
• Body of Individuals (BOIs)

The law does not make exceptions based on the type of taxpayer. The only factor that matters is your total income and when you file your return.

Penalty before section 234F

Before Section 234F of Income Tax Act was introduced, there was no fixed fee for late filing. Instead:

• The tax officer had the power to decide penalties case by case.
• Section 271F allowed penalties up to Rs. 5,000 for not filing returns.
• The process was not standard and could vary.

The new Section 234F of Income Tax Act made the rules clear and the same for everyone. It removed the need for case-by-case decisions.

To whom does section 234F apply

Section 234F of Income Tax Act applies to all taxpayers who must file income tax returns by law. This includes:

• Individuals with income above the basic exemption limit
• All companies regardless of profit or loss
• Firms and LLPs that must file returns
• HUFs with taxable income
• Anyone claiming tax refunds

Even if you have paid all your taxes through TDS, you still need to file your return on time to avoid fees under Section 234F of Income Tax Act.

Why should you file your returns?

Filing your income tax returns on time helps you avoid fees under Section 234F of Income Tax Act. But there are other benefits too:

Filing returns creates a record of your income history. This helps when you apply for loans, including home loans. Lenders like Bajaj Housing Finance check your tax records during loan approval.

Check your loan offers from Bajaj Housing Finance to see how your tax compliance can help you get better terms. You may already be eligible, find out by entering your mobile number and OTP.

Regular tax filing also helps with visa applications, shows proof of income, and lets you carry forward losses to future years for tax benefits.

Mandatory requirement for ITR filing

The law requires you to file income tax returns in these cases:

• Your income exceeds the basic exemption limit.
• You want to claim a tax refund.
• You have foreign assets or income.
• You want to carry forward losses.
• You spent more than Rs. 2 lakh on foreign travel.
• You deposited more than Rs. 1 crore in one or more bank accounts.

Failing to file when required triggers Section 234F of Income Tax Act fees. The requirements apply even if all your tax is already paid through TDS.

Income exceeding the basic exemption limit

The basic exemption limit is the income level below which you do not need to pay income tax. For the assessment year 2025-26, these limits are:

• For individuals under 60 years: Rs. 3 lakh (new tax regime)
• For senior citizens (60-80 years): Rs. 3.5 lakh (old tax regime)
• For super senior citizens (above 80): Rs. 5 lakh (old tax regime)

If your income is above these limits, you must file an ITR. Failing to do so will make Section 234F of Income Tax Act apply to you.

Section 234F of the Income Tax Applicability

Section 234F of Income Tax Act applies from the assessment year 2018-19 onwards. It applies to all taxpayers who must file returns under Section 139(1) of the Act.

The section clearly states the fees based on income levels and filing dates. The fees are added to your tax liability. You must pay them along with your tax payment.

Planning your finances properly helps avoid these fees. Just like planning for a home loan helps you manage your budget better.

What is the point of deduction of TDS?

TDS (Tax Deducted at Source) is when tax is deducted from your income before you receive it. The purpose of TDS is:

• To collect tax at the source of income itself
• To ensure regular tax collection throughout the year
• To prevent tax evasion

Even if TDS is deducted from your income, you still need to file an ITR if your income exceeds the basic exemption limit. Section 234F of Income Tax Act applies regardless of TDS payments.

How do you avoid paying the fees under Section 234F to the Income Tax Department?

To avoid fees under Section 234F of Income Tax Act:

• File your ITR before the due date (usually July 31).
• Keep your financial documents organized throughout the year.
• Start the return filing process early, not at the last minute.
• Use the income tax department's e-filing portal.
• Set reminders for tax filing deadlines.

Just as planning your home purchase in advance helps you get better loan terms, planning your tax filing helps avoid extra fees.

Check your eligibility for a Bajaj Housing Finance Home Loan to plan your finances better. You may already be eligible, find out by entering your mobile number and OTP.

How to pay Section 234F penalty online

If you have to pay a fee under Section 234F of Income Tax Act, follow these steps:

• Visit the income tax e-filing portal.
• Log in using your PAN and password.
• Go to the "e-Pay Tax" section.
• Select "Challan No. 280" for income tax payment.
• Choose "Self-Assessment Tax" as the type of payment.
• Enter the assessment year and other details.
• Select your bank and make the payment.

The process is simple and similar to applying for a home loan online.

What is the fine for late filing of ITR under section 234F of the Income Tax Act?

The fine under Section 234F of Income Tax Act depends on your income and when you file:

• Income above Rs. 5 lakh, filing before December 31: Rs. 5,000
• Income above Rs. 5 lakh, filing after December 31: Rs. 10,000
• Income below Rs. 5 lakh: Rs. 1,000
• Income below Rs. 2.5 lakh: No fee

These fees are added to your tax liability and must be paid with your tax payment.

Late filing fees under Section 234F

The late filing fees under Section 234F of Income Tax Act are set based on income levels:

For income above Rs. 5 lakh:

• Filing after due date but before December 31: Rs. 5,000
• Filing after December 31: Rs. 10,000

For income below Rs. 5 lakh:

• Filing after due date: Rs. 1,000

For income below Rs. 2.5 lakh:

• No fee applies

Example

Let us look at an example to understand Section 234F of Income Tax Act better:

Rahul has a total income of Rs. 8 lakh for the financial year 2024-25. The due date for filing his ITR is July 31, 2025. If Rahul files his ITR on:

• August 15, 2025: He pays a fee of Rs. 5,000 under Section 234F of Income Tax Act.
• January 10, 2026: He pays a fee of Rs. 10,000 under Section 234F of Income Tax Act.

The fee applies even if Rahul has paid all his taxes through TDS.

Late filing fee calculation

Here is a table showing how the late filing fee is calculated under Section 234F of Income Tax Act:

Total income	Filing before December 31	Filing after December 31
Up to Rs. 2.5 lakh	No fee	No fee
Rs. 2.5 lakh to Rs. 5 lakh	Rs. 1,000	Rs. 1,000
Above Rs. 5 lakh	Rs. 5,000	Rs. 10,000

This table makes it clear how the fee changes based on your income and filing date.

How to file Challan No. 280 to pay the 234F fees?

To pay fees under Section 234F of Income Tax Act using Challan No. 280:

• Visit the income tax e-filing portal.
• Log in with your credentials.
• Select "e-Pay Tax" option.
• Choose "Challan No. 280."
• Select "Self-Assessment Tax" as payment type.
• Enter the assessment year.
• Fill in your personal details.
• Provide bank account details for payment.
• Complete the payment process.

Keep the payment receipt safe for your records.

Is 234F a fee or a penalty?

Section 234F of Income Tax Act imposes what is officially called a "fee" and not a "penalty." The difference is important:

A fee is a charge for not following a procedure. A penalty is a punishment for breaking a law. The late filing charge under Section 234F of Income Tax Act is legally a fee for not filing your return on time.

Since it is a fee and not a penalty, the tax officer has no power to reduce or waive it. You must pay it if you file late.

How a home loan can help with tax planning

Managing your taxes well means planning all your finances, including home loans. A home loan from Bajaj Housing Finance offers tax benefits that can reduce your tax burden.

Check your home loan offers from Bajaj Housing Finance to see how you can save on taxes. You may already be eligible, find out by entering your mobile number and OTP.

How to apply for Bajaj Finserv Home Loan

Applying for a Bajaj Housing Finance Home Loan is easy:

• Click on the "Apply" button in the home loan section.
• Enter your basic details like name and mobile number.
• Verify with OTP.
• Provide income and loan requirement details.
• Submit your application.
• A representative will contact you for the next steps.

The approval process takes just 48 hours* after document submission. This quick process helps you plan your home purchase better.

Eligibility criteria to get home loan from Bajaj Finserv

To be eligible for a Bajaj Housing Finance Home Loan:

• You must be an Indian citizen residing in India.
• Salaried applicants: Age between 23 and 67 years.
• Self-employed professionals: Age between 23 and 70 years.
• CIBIL Score of 725 or higher is ideal.
• You must be a salaried employee, professional, or self-employed.
• Documents required for home loan include KYC documents, income proof, and bank statements.
• Home loan interest rates start from 7.99%*  p.a., with loans up to Rs. 15 crore*.

Conclusion

Understanding Section 234F of Income Tax Act helps you avoid unnecessary fees. Filing your returns on time is the best way to comply with the law. The fees range from Rs. 1,000 to Rs. 10,000 based on your income level and filing date.

While planning your taxes, also consider how a home loan can help with tax benefits. Bajaj Housing Finance offers home loans with interest rates starting from 7.99%*  p.a. Their loans come with benefits like:

• Loan amounts up to Rs. 15 crore*
• Tenure up to 32 years
• Approval in just 48 hours*
• No foreclosure fee
• Top-up loan facility up to Rs. 1 crore

A home loan not only helps you buy your dream home but also gives you tax benefits under Sections 80C and 24 of the Income Tax Act.

Check your eligibility for a Bajaj Housing Finance Home Loan today. You may already be eligible, find out by entering your mobile number and OTP.

Plan your taxes and home purchase together for better financial management.

*Terms and conditions apply

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