Late fee on late filing of itr

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CA AJAY KUMAR AGRAWAL (Querist)
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08 February 2017 As per proposal in Finance Bill 2017, a late fee is leviable in case of late filing of ITR. My question is in case Tax has been already paid within Previous Year / no tax is balance, whether in this situation also late fees is payable? Please share your views.

Shriya Mehta

Shriya Mehta (Expert)
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08 February 2017 Sir,
In my opinion, the late fees shall be payable irrespective of tax due for payment. The words used in the section 234F in the Finance Bill 2017 mention :
"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 said section, he shall pay, by way of fee"

Thus it relates the payment of fees to filing of return and not to payment of tax.

Also, as per amendment in Section 140A, any tax paid shall be first adjusted towards payment of interest and fees u/s 234F and balance thereafter shall be apportioned to tax. This makes it further more clear that even if tax is paid and return is filed late, it would adjust late fees first and the remaining amount shall be considered as tax.