The provisions of Section 234F (Fees for default in furnishing return of income) of the Income Tax Act,1961 are:-
Where a person required to furnish a return of income under section 139, fails to do so within due date, he shall pay:-
| (a) | Rs. 5,000/- if the return is furnished on or before the 31st day of December of the assessment year; |
| (b) | Rs. 10,000/- in any other case: |
Provided that if the total income of the person does not exceed Rs. 5,00,000/-, the fee payable under this section shall not exceed Rs. 1,000/-. Click here to read more about this section.
Taxation in case of AOP/BOI are as follows:-
- Where shares of members are determinate:
- If no member of AOP/BOI has income exceeding maximum amount not chargeable to tax, the total income of an AOP/BOI will be taxed at the same rate as applicable in case of an individual.
- If any member of AOP/BOI has income exceeding the maximum amount not chargeable to tax, the total income of AOP is taxed at maximum marginal rate.
- if the total income of any member of the AOB/BOI (whether or not it exceeds the maximum amount not chargeable to tax) is chargeable to tax at a rate higher than the maximum marginal rate, the tax on AOP shall be charged:-
i. on that portion of the total income of the AOP/BOI which is relatible to such member at such higher rate and
Ii. the balance of the total income of the AOP/BOI shall be taxed at the maximum marginal rate.
- Where shares of members are indeterminate:
- the total income of the AOP/BOI shall be taxed at the maximum marginal rate
- if the total income of any member of AOP/BOI is chargeable to tax at a rate which is higher than the maximum marginal rate, the tax shall be charged on the total income of the AOP/BOI at such higher rate.
Hence, according to the above provisions, whenever it is mandatory for AOP/BOI to file it’s IT Return then fee u/s 234F shall be levied even if the total income of AOP/BOI do not exceed maximum amount not chargeable to tax.