Introduced by the Finance Act 2017 (applicable from AY 2018–19), Section 234F imposes a fixed penalty for late filing of Income Tax Returns (ITR). It applies if you’re required to file under Section 139(1) but miss the due date, even if you have no tax liability .
Who does it apply to?
All taxpayers obligated to file ITR, including:
- Individuals
- HUFs, Firms, AOPs
- Companies, LLPs, and others .
Penalty Structure
The penalty depends on:
- When you file late, and
- Your total income
| Filing Period | Income > ₹5 lakh | Income ≤ ₹5 lakh | Income ≤ ₹2.5 lakh |
|---|---|---|---|
| After due date, on/before Dec 31 | ₹5,000 | ₹1,000 | No penalty |
| After Dec 31, before return window closes | ₹10,000 | ₹1,000 | No penalty |
- Note: Since FY 2020–21, the maximum penalty for income > ₹5 lakh has been capped at ₹5,000, even if filed after Dec 31 .
Due Dates & Filing Windows
- Regular due date:
- ITR (non-audit): July 31
- Audit cases: Oct 31 (or Nov 30 for transfer pricing) .
- Extended windows:
- Belated ITR: up to Dec 31 (with penalty)
- Final deadline: End of assessment year (typically Mar 31)
- FY 2024–25 (AY 2025–26) due date extended to Sep 15, 2025 .
Additional Consequences
- Interest charged separately under Sections 234A/234B/234C for delayed payment of tax .
- Loss of benefits:
- No carry forward of losses (capital/business) if return is late .
- Delayed refunds (interest not granted, refund timing affected) .
- No waiver: Penalty is mandatory—no exemptions for genuine delays .
How to Pay the Penalty
- Use Challan No. 280 (Self-Assessment Tax type).
- Enter the fee under the “Others” column.
- Pay via net banking, debit card, or bank branch .
- File ITR only after payment is processed (upload counterfoil receipt).
Quick Summary
- Section 234F penalizes late ITR filings from AY 2018–19 onwards.
- Penalty is ₹5,000 (₹1,000 if income ≤ ₹5 lakh) if filed by Dec 31.
- Introduced a cap of ₹5,000 max for higher-income taxpayers since FY 2020–21.
- Applies to all mandated filers—individuals, businesses, etc.
- Filing late results in additional interest, lost benefits, and delayed refunds.
- Must pay via Challan 280 before filing return.
Final Takeaway
Timely filing of your ITR helps you avoid fixed penalties, save interest, carry forward losses, and receive refunds faster. Even a small ₹1,000 or ₹5,000 penalty adds up when combined with interest or loss of benefits. Filing before Dec 31 also keeps the penalty minimal.
