Filing tax return within due date is extremely important for many reasons. But this post is about one exception situation under which a taxpayer, even if total income is below exemption limit, will be charged fee under section 234F of the Income Tax Act. In fact, because of widespread, ignorance about this exceptional law among common taxpayer , they may just ignore filing the tax retur within due time and end up paying the fee u/s 234F  . Who must pay fee u/s 234F? Section 234F lays down that anyone who is required to file tax return u/s 139 of the I.T.Act will pay fee as under : Rs 5000 if filed after due date but before 31st December Rs 10,000 if filed after 31st December Rs 1000 in every case if total income is below Rs 5,00,000 Five Cases You Must File Tax Return Even if Total Income is NIL Section 139 of the Income Tax Act exempts an Individual ,HUF , AOP from filing tax return if the total income is below exemption limit. Therefore if you are individual and having income below Rs 2,50,000 for Asst Year 2018-19 , you may just skip filing tax return or even if you file tax return after due date , section 234F will not apply to you. But ,same section 139 lays down certain exceptions under which an Individual or HUF or any other person has to compulsorily file tax return. In those case , section 234F will apply , because they are required to file tax return u/s 139. Who needs compulsorily file tax return even if total income is NIL ? Following are the list of such persons and situations 1. Individual,HUF ,AOP  - if your Gross Total income (not the total income , as is believed commonly) without deducting Any long term capital gains exempt u/s 10(38) Any chapter VIA deduction which means - Section 80C ,*0 D or 80TTA and others Read the provision under section 139 of the Income Tax Act ? Provided also that every person, being an individual or a Hindu undivided family or an association of persons or a body of individuals, whether incorporated or not, or an artificial juridical person, if his total income or the total income of any other person in respect of which he is assessable under this Act during the previous year, without giving effect to the provisions of clause (38) of section 10 or section 10A or section 10B or section 10BA or Chapter VI-A exceeded the maximum amount which is not chargeable to income-tax, shall, on or before the due date, furnish a return of his income or the income of such other person during the previous year, in the prescribed form and verified in the prescribed manner and setting forth such other particulars as may be prescribed Example 1: Mr x gets gross salary + interest of Rs 350000 for asst year 2018-19. He deposited Rs 150000 in PPF. Should he file tax return as his total income is Rs 200000 only ?? Answer : Yes, the proviso says if the gross total income before deduction Chapter VIA deduction needs to compulsorily file tax return. So his gross total income is Rs 350000 . If he files late return he will have to pay Fee u/s 234F Example 2: Mr Y has no income other than interest income of Rs 100000. During the year he earned log term capital gains of Rs 2,50,000 which is exempt u/s 10(38) . His total income for asst year 2018-19 is Rs 1,00,000 only. Should he file tax return ? Answer : Yes, because the gross total income before claiming exemption u/s 10(38) is Rs 3,50,000 which is more than exemption limit. In this case also , he will have to pay fee u/s 234F if he files return after due date. 2. Persons Resident in India and holding asset out side India If you are resident in India and holds assets or are a beneficiary in any asset or accounts outside India, you will have to file return compulsorily even if no income in India. Provided also that a person, being a resident other than not ordinarily resident in India within the meaning of clause (6) of section 6, who is not required to furnish a return under this sub-section and who at any time during the previous year,— (a) holds, as a beneficial owner or otherwise, any asset (including any financial interest in any entity) located outside India or has signing authority in any account located outside India; or (b) is a beneficiary of any asset (including any financial interest in any entity) located outside India, shall furnish, on or before the due date, a return in respect of his income or loss for the previous year in such form and verified in such manner and setting forth such other particulars as may be prescribed: 3. Firm or company even if NIL income 4. Trusts  who need to file tax return u/s 139(4A) & Political parties u/s 139(4B) if gross total income (before claiming exemption under respective provisions) is more than exemption limit