Letter to BS: Fine on late filing of Income Tax returns is illogical, harsh

Effective April 1, 2018, Section 234F was inserted in the Income Tax Act. It deals with a “fee” for a default in furnishing return of income. As per this provision, income tax assessees, who fail to file their IT returns within the prescribed time, would have to pay a fee for default. The late fee is deducted automatically.

The provision is unmindful of the difficulties faced by senior citizens and the differently-abled. Further, it does not provide any leeway for the delay in filing IT returns due to genuine reasons such as sickness, chronic ailments, maternity, marriage, death in the family etc.

It is pertinent to note that Section 234F is levied even if the taxpayer has discharged his entire tax liability to the government by way of Advance Tax, TDS, self-assessment and so on. In view of the same, Section 234F is illogical and harsh.

There is an inordinate delay in activating the ITRs in the e-portal from the side of the government. The delay is attributable to the department and not the assessee. Section 234F is silent on what has to be done when, due to non-filing of TDS returns by the person who has had his tax deducted, the TDS credit is not reflected in Form 26AS.

 
Jyoti P Kanoi,  Dibrugarh
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