Section 234F of the Income Tax Act, 1961, is a provision that imposes a penalty for late filing of income tax returns (ITR). The provisions of this section came into effect from the financial year 2016-17 onwards.

According to Section 234F, if an individual fails to file their ITR within the due date (usually July 31st of the assessment year), they may be required to pay a penalty. The amount of the penalty is:

• Rs. 5,000, if the ITR is filed before December 31st of the assessment year.
• Rs. 10,000, if the ITR is filed after December 31st but before March 31st of the assessment year.
• Rs. 1,000 per day for each day of delay, if the ITR is filed after March 31st of the assessment year.

However, if the total income of the individual for the relevant financial year does not exceed Rs. 5 lakhs, the maximum penalty will be Rs. 1,000.

It is important to note that the provisions of Section 234F are applicable only to individuals who are required to file an ITR, and not to those who are exempt from filing due to their low-income levels