Late Filing of ITR
In his Budget Speech on 1st February 2017, the Finance Minister proposed to levy a fee in case of delayed ITR filing. This was subsequently introduced in the Income Tax Act through section 234F. This late filing fee is the most important reason for anxiety and anguish amongst taxpayers in this tax season. The Income Tax Department has wisely responded to such anguish by month long extension of the due date of filing ITR to 22.214.171.1248 from 31.07.2018. This article shall examine this issue and suggest a way to make it better and more equal.
The late filing fees explained
The late fee is charged under section 234F of the Income tax Act. It is placed at par with interest charging sections of the Income-Tax Act. This means the late fee is mandatory and not optional or discretionary. The late fee forms part of tax liability together with tax and interest computed at the time of filing Income