Section 234G of Income Tax Act for AY 2023-24

Section 234G of Income Tax Act 1961 amended by Finance Act 2022 and Income-tax Rules. Fee for default relating to statement or certificate.

Amended and updated notes on section 234G of Income Tax Act 1961 as amended by the Finance Act 2022 and Income-tax Rules, 1962. Detail discussion on provisions and rules related to Fee for default relating to statement or certificate.

Chapter XVII (Sections 190 to 234G) of the Income Tax Act 1961 deals with the provisions related to collection and recovery of tax. Section 234G of IT Act 1961 provides for Fee for default relating to statement or certificate.

Recently, we have discussed in detail section 234F (Fee for default in furnishing return of income) of IT Act 1961. Today, we learn the provisions of section 234G of Income-tax Act 1961. The amended provision of section 234G is effective for financial year 2022-23 relevant to the assessment year 2023-24.

In this article, you will learn detail of the provisions of section 234G of the Income Tax Act, 1961 Bare Act read with the Income-tax Rules, 1962 as provided by Ministry of Law and Justice, Government of India.

Section-234G: Fee for default relating to statement or certificate

Section 234G(1) of Income Tax Act

Without prejudice to the provisions of this Act, where,—

  • (a) the research association, university, college or other institution referred to in clause (ii) or clause (iii) or the company referred to in clause (iia) of sub-section (1) of section 35 fails to deliver or cause to be delivered a statement within the time prescribed under clause (i), or furnish a certificate prescribed under clause (ii) of sub-section (1A) of that section; or
  • (b) the institution or fund fails to deliver or cause to be delivered a statement within the time prescribed under clause (viii) of sub-section (5) of section 80G, or furnish a certificate prescribed under clause (ix) of the said sub-section,

it shall be liable to pay, by way of fee, a sum of two hundred rupees for every day during which the failure continues.

Section 234G(2) of Income Tax Act

The amount of fee referred to in sub-section (1) shall,—

  • (a) not exceed the amount in respect of which the failure referred to therein has occurred;
  • (b) be paid before delivering or causing to be delivered the statement or before furnishing the certificate referred to in sub-section (1).

[Section 234G was inserted w.e.f. 01.06.2020 by the Finance Act 2020]


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