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Replacement of penalty u/s 271F

03 August 2020

sir ,
from A.Y. 2017-18 is penality has been abolished...so for the replacement of this section..i want to know if anything had come for this penalty.

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Yudhishthir Sharma (Article) (207 Points)
Replied 03 August 2020

Yes,

The provisions of penalty u/s 234f shall be applicable from 1st april 2018.

The amount of penalty levied as follow for FY 2018-19 (AY 2019-20):-
(1) If the return is furnished after 31st August but on or before the 31st day of December of the assessment year - Rs. 5000 (due date extended in FY 2018-19 upto 31st August)
(2) If the return is furnished after 31st December of the assessment year (1 Jan - 31st March) - Rs. 10,000

Note :- If the Total Income i.e. Income after deduction is less than or equal to five lakh rupees, then, in that case, the fee amount shall not exceed Rs. 1000.

Divyam Agarwal (Practicing Chartered Accountant) (959 Points)
Replied 03 August 2020

Section 271F - If a person who is required to furnish a return of his income, as required under sub-section [1] of section 139 or by the provisos to that sub-section, fails to furnish such return before the end of the relevant assessment year, the Assessing Officer may direct that such person shall pay, by way of penalty, a sum of five thousand rupees:
Provided that nothing contained in this section shall apply to and in relation to the return of income required to be furnished for any assessment year commencing on or after the 1st day of April, 2018.

Section 234F - [1] Without prejudice to the provisions of this Act, where a person required to furnish a return of income under section 139, fails to do so within the time prescribed in sub-section [1] of the said section, he shall pay, by way of fee, a sum of,—
[a] five thousand rupees, if the return is furnished on or before the 31st day of December of the assessment year;
[b] ten thousand rupees in any other case:
Provided that if the total income of the person does not exceed five lakh rupees, the fee payable under this section shall not exceed one thousand rupees.
[2] The provisions of this section shall apply in respect of return of income required to be furnished for the assessment year commencing on or after the 1st day of April, 2018.

Section 271F has become ineffective w.e.f. A.Y. 2018-19 and onwards and Section 234F has been implemented from A.Y. 2018-19 and onwards.

Section 234F has been implemented in place of Section 271F.

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