Answer

1. F

   Facts

   The late fee under Sec 234F and interest are civil consequences. Prosecution under Sec 276CC is a separate criminal route for wilful failure. Paying the fee does not by itself stop prosecution, but filing on time within the exceptions does.

2. P

   Provisions and law

   • Sec 234F (now Sec 428)Late filing fee of ₹5,000, or ₹1,000 where total income is up to ₹5 lakh
   • Sec 276CC (now Sec 479)Prosecution for wilful failure to file a return on time; jail of 3 months to 2 years, or 6 months to 7 years where tax evaded exceeds ₹25 lakh
   • Sec 139(4) (now Sec 263(4))A late (belated) return can be filed up to 31 December of the assessment year or before assessment, whichever is earlier
3. A

   Analysis

   A return filed late but before the end of the assessment year is protected from Sec 139(1) prosecution under the proviso, regardless of the fee. If filed after the assessment year ended, rely on small tax payable or reasonable cause. Attach the challan and acknowledgement to show compliance. Your good faith in paying fees helps show intent.

4. C

   Conclusion

   1. 1Check the filing date against the end of the assessment year.
   2. 2Attach the acknowledgement and fee challan.
   3. 3State the applicable exception.
   4. 4Explain the reason for delay.

General guidance from TaxSavvy’s library of money processes. Laws change; your Savvy confirms the answer on your exact case before anything is filed.