Late filing fee under section 234F is one of the most commonly encountered levies by taxpayers who miss the due date for filing their income-tax return. The fee is imposed automatically by the system and often comes as an unpleasant surprise at the time of filing or while processing under section 143(1).
A common question asked by taxpayers is: Can the late filing fee under section 234F be waived, reduced, or challenged?
The short answer is: in limited situations, yes—but not in every case.
This article explains how section 234F works, when it applies, when it does not apply, and the practical options available to taxpayers.
What Is Section 234F?
Section 234F was introduced with effect from Assessment Year 2018–19. It provides for a mandatory fee for delay in filing the return of income beyond the prescribed due date under section 139(1).
Unlike interest or penalty provisions, section 234F levies a fee, not a tax or penalty. This distinction is important because the fee is generally auto-computed by the system.
Amount of Late Filing Fee under Section 234F
The quantum of fee depends on total income and date of filing.
- If total income exceeds ₹5 lakh:
- Fee up to ₹5,000
- If total income does not exceed ₹5 lakh:
- Fee restricted to ₹1,000
The fee is levied per return, not per day of delay.
When Is Section 234F Applicable?
Late filing fee under section 234F applies when:
- The return of income is filed after the due date prescribed under section 139(1)
- The assessment year is 2018-19 or later
- The return is a belated return under section 139(4)
Once these conditions are satisfied, the system automatically computes the fee while processing the return.
Situations Where Section 234F May Not Apply
Although section 234F is stringent, there are situations where it may not apply or can be contested.
1. Assessment Year Prior to 2018-19
Section 234F does not apply to returns relating to:
- AY 2017-18 or earlier
If late filing fee is levied for an earlier year, it is illegal and liable to be deleted.
2. Return Filed Within Extended Due Date
If the due date was extended by CBDT (for example, due to COVID-19 or technical issues), and the return was filed within such extended date, section 234F cannot be levied.
3. Nil Income or Below Basic Exemption (Limited Relief)
While the section technically applies even to nil returns, courts and authorities have in some cases taken a lenient view, especially where:
- No tax was payable
- Delay was minimal
- There was reasonable cause
However, this is not automatic and depends on facts.
4. Technical or Portal-Related Issues
Where delay in filing is due to:
- Income-tax portal malfunction
- Non-availability of forms or utilities
- System-generated errors
Taxpayers can seek rectification or administrative relief, supported by evidence.
Can Late Filing Fee under Section 234F Be Waived?
Automatic Waiver – ❌ Not Available
There is no general statutory provision for automatic waiver of fee under section 234F.
Rectification under Section 154 – ✅ Possible in Limited Cases
Rectification can be sought where:
- Wrong assessment year applied
- Fee exceeds statutory limit
- Fee levied despite timely filing
- Computational or system error
Rectification works only for mistakes apparent on record.
Appeal Before CIT(A) – ⚠ Limited Success
Appeals against section 234F have had mixed results. Courts have generally held that:
- Fee under section 234F is mandatory
- Authorities have no discretion once conditions are met
However, relief has been granted in cases involving:
- Legal infirmity
- Retrospective application
- Constitutional challenges (in limited contexts)
Administrative Relief / Grievance – ✅ Practical Route
In genuine hardship cases, taxpayers may:
- File grievance on the income-tax portal
- Seek administrative relief citing reasonable cause
- Attach supporting documents
This route is often faster and more effective than litigation.
Practical Approach for Taxpayers
If late filing fee under section 234F is levied, follow this sequence:
- Check assessment year – confirm applicability
- Verify due date – including extensions
- Check income threshold – ₹1,000 vs ₹5,000
- File rectification u/s 154, if applicable
- Raise grievance, if delay was technical
- Consider appeal, only if strong legal ground exists
Blind litigation should be avoided.
Conclusion
Late filing fee under section 234F is largely mandatory and system-driven, leaving little scope for routine waiver. However, incorrect levy, legal non-applicability, or genuine hardship cases can still be addressed through rectification, grievance, or limited appellate remedies.
The safest approach is timely filing of return, but where delay has already occurred, a calm, structured response is far more effective than panic or assumption.
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