234F penalty

Yes it will...
as this section refers to gross total income before deducting any deduction u/s Chapter VI-A and setting off losses.

where is it mentioned about setting off losses?

if assessee failed to file return within due date as prescribed under section 139(1) he will be liable to pay penalty as per section 234f in the following manner:
if total income <= 5,00,000 fee will be 1,000
if total income > 5,00,000 fee payable depends on date of filing of return
a) file on or before 31st december 5,000
b) file after 31 st december 10,000

In case fee will be 1,000 since total income is zero in your case

Good Explanation Mr. Ajay...

But, Fee applicable Rs 5000 filing on or before 31st december...



*** Rs. 1000 applicable if GTI less than 5lakhs.

Yeah .. Correct

Sec 234F - Without prejudice to the provisions of this Act, where a person required to furnish a return of income under section 139 ...

Sec 139 - Explanation 5(3) - If any person .... such a return also considered as if it were a return under sub-section (1).

total income is different from taxable income... here your total income is 7 lakhs whereas taxable income is nil. section 139 speaks about the person having total income which exceeds maximum amount not chargeable to tax and their obligation to file ROI... HENCE 234f is applicable in your case...


@ nivedita it is not explanation 5(3) but 139(3) which speaks about the filing of loss returns to be filed so that the same can be carried forward and set off in subsequent a. ys
correct me if I am wrong

@ Mr Rama Krishnan.,

Sec 234F is applicable based on Gross Total Income which is All total income Before Deductions of all like Business Expenditure, Cha VI-A and Losses also...

When applicable sec 139(1) is a Asseessee Income earned Rs. 250001...

@ Rama Krishnana

Noted.

Yeas that is Sec 139(3) instead of Explanation 5(3).

The Main intention  behind introduction of 234F is to file the income tax return with in the due date. Section 234F completely based on section 139. As per section 139, total income means total income without giving effect effect to provisions of section 10A/10B/10BA/Chapter VIA Deductions. So as per my opinion one can take losses into A/c for calculation of Total income. So as per Section 139 assessee other than companies and firm has to file return only when the total income before giving effect to above exemptions and deductions exceeds 2,50,000. If assessee failes to file return u/s 139 then 234f applies. Since in this case toatl income is nil and he fails to file return with in due date , he is liable to pay penalty of Rs.1000 as per 234 F.

Hope you guys understood and kindly correct me if i am wrong.

Note: Section 139(3) talks about filing of loss return with in due date in order to carry forward losses to next previous year and not about setting off losses

The sec applicable based Gross income... Not on Taxable income...

Better to understand with sec 139 & 234F...

As per Section 234F read with 139 total income means income before giving effect to provisions of section 10 and chapter VIA. In the proviso no where mentioned about section 79 & 80. Hence in the total income calculation one take into account current year and previous year losses.

Normal GTI Format:

Income from salaries    XXXXXXXX

Income from HP           XXXXXXXX

PGBP Income              XXXXXXXX

CG Income                  XXXXXXXX

Other Sources             XXXXXXXX

Total Income               XXXXXXXX

C/Y and B/F loss        (XXXXXXXX)

GTI                             XXXXXXXX

VIA Deductions          (XXXXXXXX)

Taxable Income         XXXXXXXX

 

For 139 Limit the calculation will be:

Taxable Income                     XXXXXXXXX

Add: VIA Deductions            XXXXXXXXXX

Add: 10A/10B/10BA             XXXXXXXXXX

Total Income for Section 139 XXXXXXXXXX

Hope this will be give clarity.

 

Ha Ha Ha...

Bro... Your Explanation is Very well and Excellent Calculation...


But, The sec 234F kick in the point of 6.

The point number 6 is less than 2.5lakhs then no need to file ITR. In case assessee will file his ITR then sec 234F not levied.

The Point number 6 is exceeding 2.5 Lakhs then Assessee is file his ITR as per sec 139(1).
As per sec 234F assessee will pay Rs 1000 if his income (as per point no 6) less than 5lakhs...

The point no 6 exceeding above 5lakhs then Asseessee will pay Rs. 5000 (on or before 31st December) or Rs. 10000 (After 31st December)...



In case any doubt please ask the details to Your seniors...

Agreed with you Bro But i want clairty over the definition of total income as per income tax act. Kindly tell me the exact wordings and section of total income as per income tax act. Hope i will get clarity from you about this section.

@ RAJA PM Kindly check ITR also for the for the definition of total income. It seems to me that we both understood provision in a wrong way. As per section 234F total income means taxable income only i.e. even deductions and losses also has to be taken into account. Depends on total income 234F will be levied.