Penalty for Late Filing of ITR for FY 2024-25 (AY 2025-26)

The last date to file your Income Tax Return (ITR) for Financial Year 2024–25 (Assessment Year 2025–26) is 31st July 2025. If you miss this deadline, a late filing fee of Rs. 5,000 will apply. To avoid penalties and last-minute stress, it’s best to file your return on time.
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01 July 2025

Are you ready to file an Income Tax Return (ITR) for the AY 2025-26? The Central Board of Direct Taxes (CBDT) has already released multiple ITR forms (Form 1 to Form 7) for different taxpayer categories. By using these forms, you can accurately report income earned during the FY 2024-25.

The Income Tax Department is also expected to update online utilities soon. Once updated, you can fill and submit your ITRs directly on the e-filing portal.

As a taxpayer, you must know the last date to file an ITR for the AY 2025-26 based on your taxpayer category (individual, company, firm, etc.). If you do not file your return by the due date, you will have to pay a penalty for late filing. Additionally, you will lose certain benefits like carrying forward losses or faster processing of refunds.

Want to understand in detail? This article will explain all you need to know about the penalty for late filing of ITR for the financial year 2024-2025. We will look at the fees for different types of taxpayers. We will also see how to avoid these penalties by planning better. Just like how planning for a home loan helps you secure your future, planning your tax filing helps avoid extra costs.

Who should file ITR, and what’s the deadline for AY 2025-26?

Anyone who earns income above the basic exemption limit or meets certain conditions set by the Income Tax Department must file an ITR. The due date to file an ITR depends on the type of taxpayer.

The table below shows the due dates for filing the ITR for the AY 2025-26:

Category of taxpayer

Due date to file ITR

Individuals, HUFs, AOPs, BOIs (not required to get accounts audited)

September 15, 2025 (extended from July 31, 2025)

Businesses or professionals whose accounts are subject to audit

October 31, 2025

Domestic companies

October 31, 2025

Taxpayers who must submit a transfer pricing report

November 30, 2025

Belated or revised returns (for any category)

December 31, 2025

 

Each category must follow the correct deadline to avoid penalties and delays.

Planning your taxes properly helps you avoid penalties and manage your finances better. When you organize your tax affairs, you can also plan for major life goals like buying a home. Check your eligibility for home loan from Bajaj Finserv to see how proper financial planning can help you achieve your dream home. You may already be eligible, find out by entering your mobile number and OTP.

Penalty for missing ITR filing deadlines for AY 2025-26

If you do not file your ITR for the AY 2025-26 by the due date, there are certain consequences. Generally, these are:

  • Penalties

  • Interest charges

  • Loss of tax benefits

As a taxpayer, you must understand what can happen if the deadline is missed. Below are some main consequences you must know:

  • Late filing fees (under Section 234F)

    • You have to pay a fixed penalty.

    • If your total income is less than Rs. 5 lakh, the penalty is Rs. 1,000.

    • However, if your total income is more than Rs. 5 lakh, the penalty can go up to Rs. 5,000.

  • Interest on unpaid tax (under Section 234A)

    • If you have not paid your total tax before the due date, you will be charged 1% interest per month on the unpaid amount.

    • This charge will be levied until the tax is actually paid.

  • Loss of tax benefits

    • If you miss the deadline, you cannot carry forward certain losses (like business loss or capital loss) to the upcoming financial year.

    • This restricts your ability to reduce taxable income and save tax in the future.

Penalty for late filing of the income tax return for an individual

If you miss the deadline for ITR filing, the Income Tax Department imposes penalties under different sections of the Income Tax Act. Let’s understand them in detail:

1. Section 234F (Penalty for late filing of ITR)

If you file your ITR after the due date (September 15, 2025, for AY 2025-26), a penalty is charged under Section 234F. This rule has been in effect since the financial year 2017–18.

As per this rule, if you file your ITR between the due date and December 31, 2025, you must pay a late fee as follows:

  • If your total income is more than Rs. 5 lakh, the penalty is Rs. 5,000.

  • If your total income is less than Rs. 5 lakh, the penalty is limited to Rs. 1,000.

Please note that this rule applies to belated returns. For those unaware, ITRs, which are filed after the original deadline but before the end of the assessment year (December 31, 2025, for FY 2024–25), are called belated returns.

Earlier, the maximum penalty used to be Rs. 10,000. However, from the financial year 2021, this has been reduced to Rs. 5,000.

2. Section 234A (Interest on late payment of tax)

If you have unpaid taxes and you file your return late, the government charges interest under Section 234A as follows:

  • Interest is charged at 1% per month (or part of a month) on the unpaid tax amount.

  • The interest is calculated from the due date of filing the return until the actual date of filing.

  • This charge also applies if you changed jobs and failed to submit your Form 16.

Managing your tax obligations efficiently frees up more money for important investments like property. If you are planning to buy a home, now might be the perfect time to explore financing options. Check your loan offers with Bajaj Finserv to see competitive rates starting from 7.49%* p.a You may already be eligible, find out by entering your mobile number and OTP.

3. Section 234B (Interest for non-payment or short payment of advance tax)

As per the Income Tax Act, you are required to pay advance tax when your tax liability exceeds Rs. 10,000 in a financial year. You are liable to pay interest under Section 234B, if:

  • You don’t pay any advance tax
    or

  • You pay less than 90% of the total tax due

In this case, interest is charged at 1% per month from the end of the financial year (March 31) to the date the balance tax is paid. This interest is applied in addition to the tax payable.

4. Section 234C (Interest for delay in instalments of advance tax)

Advance tax must be paid in instalments on or before specific dates during the year. If you fail to pay these instalments on time, you will be charged interest under Section 234C. Let’s see how:

  • This interest also applies at the rate of 1% per month.
  • It is charged on the difference between:
    • The actual tax paid
      and
    • The amount that should have been paid in each instalment.

Be aware that this section specifically targets late payments during the financial year (not at the end).

5. Section 271H (Penalty for late filing of TDS/ TCS returns)

If you are responsible for deducting or collecting tax at source (TDS/ TCS) and you fail to file the applicable returns on time, Section 271H applies.

Under this section, the penalty ranges from Rs. 10,000 to Rs. 1,00,000. Please note that this is separate from the late fee under Section 234E, which is Rs. 200 per day until the TDS/TCS return is filed.

6. Section 270A (Penalty for underreporting or misreporting income)

A penalty is imposed under Section 270A when:

  • You fail to file your ITR
    or

  • You file the ITR, but underreport your income

The penalty for underreporting income is 50% of the tax payable on the underreported amount. Mostly, this section is applied after the tax department finds that the taxpayer is hiding income (during an income escaping assessment).

Penalty for late filing of income tax return for private limited company

Private companies face stricter penalties:

Compliance issue Penalty amount
Late filing under Section 234F Rs. 10,000 flat penalty for late filing of ITR
Failure to file return (Section 271F) Rs. 5,000 per day until default continues
Carrying on business without filing (Section 271BA) Rs. 10,000 flat penalty
Inaccurate details (Section 271AAB) 30% to 60% of tax sought to be evaded

 

The penalty for late filing of ITR for companies is higher because they have greater responsibility. Companies must also pay interest on any tax due at 1% per month. This makes timely compliance even more important for business entities.

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Penalty for late filing of income tax return for partnership firm

Partnership firms face these penalties:

Filing delay Penalty amount
Late filing under Section 234F Rs. 5,000 as penalty for late filing of ITR
Interest under Section 234A 1% per month on unpaid tax
Defective return Rs. 5,000 if not corrected within time
Non-compliance with tax audit 0.5% of turnover or Rs. 1,50,000, whichever is less

 

Partnership firms must be especially careful with their tax filings. The penalty for late filing of ITR can affect all partners. Firms with turnover above Rs. 1 crore must also get their accounts audited or face extra penalties.

Penalty for late filing of income tax return for company

Companies have specific penalty structures:

Company type Penalty amount
All companies under Section 234F Rs. 10,000 flat penalty for late filing of ITR
Defective return Rs. 5,000 if not corrected after notice
Missing transfer pricing documentation 2% of value of international transaction
Non-compliance with tax audit Rs. 1,50,000 or 0.5% of turnover, whichever is less

 

The penalty for late filing of ITR for companies is designed to ensure corporate tax compliance. Companies also face reputational risks from non-compliance. This makes timely filing even more important for business entities.

Penalty for late filing of income tax return for trust

Trusts have these penalties:

Trust type Penalty amount
Charitable trusts under Section 234F Rs. 5,000 as penalty for late filing of ITR
Religious trusts Rs. 5,000 as penalty for late filing of ITR
Private trusts (taxed as AOP) Based on income level (Rs. 1,000 or Rs. 5,000)
Interest under Section 234A 1% per month on unpaid tax

 

Trusts must file ITR-7. The penalty for late filing of ITR affects their exemption status. Trusts must be careful to maintain their tax benefits by filing on time. Late filing can also lead to detailed scrutiny by tax authorities.

Penalty for late filing of ITR below 5 lakhs

Taxpayers with income below Rs. 5 lakhs have lower penalties:

Filing period Penalty amount
After due date but before December 31, 2025 Rs. 1,000 as penalty for late filing of ITR
After December 31, 2025 but before March 31, 2026 Rs. 1,000 as penalty for late filing of ITR
Interest on unpaid tax 1% per month under Section 234A
Loss carry forward Not allowed if filed after due date

 

Even though the penalty for late filing of ITR is lower for this income group, Rs. 1,000 can be significant. It is about 0.2% of the annual income for someone earning Rs. 5 lakhs. This shows how important it is to file on time even for lower-income taxpayers.

Penalty for late filing of income tax return u/s 234F

Section 234F specifics include:

Filing timeline Fee for income up to Rs. 5 lakh Fee for income above Rs. 5 lakh
Filed before due date No penalty for late filing of ITR No penalty for late filing of ITR
Filed after due date but before December 31, 2025 Rs. 1,000 as penalty for late filing of ITR Rs. 5,000 as penalty for late filing of ITR
Filed after December 31, 2025 Rs. 1,000 as penalty for late filing of ITR Rs. 10,000 as penalty for late filing of ITR
Not applicable if total income below basic exemption No penalty for late filing of ITR Not applicable

 

The penalty for late filing of ITR under Section 234F applies to all returns filed after the due date. The fee is collected along with the tax payment when you file your return. The tax department does not send a separate notice for this fee.

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Penalty for late filing of income tax return ITR-7

For ITR-7 filers like trusts and institutions:

Entity type Penalty amount
Charitable/Religious institutions Rs. 5,000 as penalty for late filing of ITR
Educational institutions Rs. 5,000 as penalty for late filing of ITR
Hospitals Rs. 5,000 as penalty for late filing of ITR
Research associations Rs. 5,000 as penalty for late filing of ITR

 

ITR-7 is used by entities claiming exemption under sections 11, 12, or 10(23C). The penalty for late filing of ITR for these entities can affect their exempt status. They must also get their accounts audited by the due date to avoid further penalties.

Benefits of ITR filling before due date

Filing your income tax return before the due date offers many benefits:

Benefit

Description

No penalty for late filing of ITR

You avoid paying extra fees when you file on time. This penalty for late filing of ITR can go up to Rs. 5,000.

Carry forward losses

You can carry forward certain losses to set off against future income. This is not allowed if you file late.

Quicker refunds

Your tax refund process starts faster if you file on time. Late filing means waiting longer for your money.

Complete loan processing

Banks check your ITR when giving loans. On-time filing helps get home loans from lenders like Bajaj Housing Finance more easily.

Avoid notices

The tax department is less likely to send you notices if you file on time.

 

ITR not filed for the previous financial years

If you did not file your ITR for any previous financial year, you still have two options to correct this. However, these options are only available under specific conditions and require approval from the Income Tax Department.

The two ways to deal with this are:

  1. File an Updated Return under Section 139(8A)
    and

  2. Submit a Condonation Request under Section 119(2)(b)

Let’s understand both of them in detail:

1. Updated return under Section 139(8A)

If you missed filing ITR for a financial year, you may still file an updated return within two years from the end of the relevant assessment year. This is allowed under Section 139(8A).

You can file the updated return through the Income Tax portal. However, it will include:

  • Additional tax

  • Interest

  • Late fees

This option is available only if the department has not started a scrutiny or assessment in your case.

2. Condonation request under Section 119(2)(b)

If you are not eligible to file an updated return, you can request the Income Tax Department to allow you to file your ITR late. This is known as a condonation of delay. It is only allowed in genuine cases, such as medical emergencies or other valid reasons.

Follow these steps to request a condonation:

Step 1: Submit application

You must submit a written application to your jurisdictional Assessing Officer through the Income Tax e-filing portal. In the application, clearly explain the reason for missing the original deadline.

Step 2: Respond to notice

After reviewing your application, the Income Tax Department may send you a notice asking for more details. You can check for this notice on the portal under the:

  • ‘E-file’ section
    or

  • ‘Pending Actions’ tab on your dashboard

You or your authorised representative (such as a Chartered Accountant) can respond to the notice online.

Step 3: File the ITR

If your application is approved, the portal will allow you to file your delayed return.
Once permitted, you must complete the return filing on the Income Tax website using the correct form for the relevant year.

Mistakes to avoid while filing ITR; 200% penalty and jail can be cost of ignorance

As per Section 139, you must file an ITR if your income exceeds the basic exemption limit. However, many people either:

  • Do not file their ITR on time
    or

  • Make errors in their return

While minor mistakes can be corrected later, giving false information in your ITR is a serious offence. There are strict penalties if a person files incorrect or misleading information in their ITR, such as:

  • Overstating deductions

  • Underreporting income

  • Hiding sources of income

Please note that the Income Tax Department now verifies every claim made in the ITR using the Annual Information Statement (AIS). This system collects data from:

  • Banks

  • Employers

  • Mutual funds

  • Other financial institutions

This is done to check whether the income and expenses reported in the ITR are accurate. If any false information is found during verification, the following actions may be taken:

  • A penalty of 200% of the tax amount
    and

  • An interest of 12% per year on the unpaid or underpaid tax

In serious cases, the taxpayer may also face imprisonment (depending on the nature and size of the offence). Thus, to avoid such consequences, you should always:

  • Report your income truthfully

  • Claim only valid deductions

  • File your ITR within the due date

Conclusion

Filing your income tax return on time is crucial to avoid the penalty for late filing of ITR. For FY 2024-2025, individuals with income up to Rs. 5 lakhs face a Rs. 1,000 fee for late filing. Those with higher incomes face a Rs. 5,000 fee. Companies and other entities have their own penalty structures. Besides fees, late filing also means paying interest on any tax due.

Avoiding tax penalties and managing your finances well gives you more opportunities to invest in your future. If homeownership is part of your financial goals, proper tax planning can help you qualify for better home loan rates. Check your eligibility for a home loan from Bajaj Finserv with rates starting from 7.49%* p.a and loan amounts up to Rs. 15 Crore*. You may already be eligible, find out by entering your mobile number and OTP.

Frequently asked questions

What are the penalties for late filing of returns?
The penalty for late filing of ITR is Rs. 1,000 for income up to Rs. 5 lakhs and Rs. 5,000 for higher incomes, plus 1% monthly interest on unpaid tax.

What is the maximum penalty for filing a late return?
The maximum penalty for late filing of ITR is Rs. 10,000 for returns filed after December 31 of the assessment year for high-income earners.

Can ITR be filed after 31st December?
Yes, ITR can be filed until March 31 of the assessment year with higher penalty for late filing of ITR, after which you need special permission.

Can we file an ITR after a due date?
Yes, you can file ITR after the due date as a belated return, but you must pay the penalty for late filing of ITR and lose certain benefits.

What is the last date to file ITR for AY 2024-25?
July 31, 2024 was the original due date. Belated returns could be filed until January 15, 2025 with penalty for late filing of ITR.

What is the late fee for ITR filing 2024?
The late fee for ITR filing 2024 is Rs. 1,000 for income up to Rs. 5 lakhs and Rs. 5,000 for income above Rs. 5 lakhs as penalty for late filing of ITR.

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Frequently asked questions

What is the late fee for belated return?

If you miss the deadline for filing your ITR, you will be required to pay a late filing fee under Section 234F of the Income Tax Act.

  • The fee is Rs. 5,000 if your total income is more than Rs. 5 lakh.

  • If your total income is Rs. 5 lakh or less, the late fee is Rs. 1,000.

This section applies when you file your return after the due date but before December 31 of the assessment year. Filing beyond this period is not allowed unless permitted through special provisions.

What is the maximum late fee for annual return?

Under Section 47(2) of the CGST Act, 2017, if a registered taxpayer fails to file the required Annual Return under GST by the due date, a late fee of Rs. 100 per day is charged. This penalty is calculated from the due date till the actual filing date.

However, the total late fee is capped at 0.25% of the taxpayer’s total turnover in the concerned State or Union Territory. Please note that a similar late fee is charged under the SGST Act as well.

How can I avoid late ITR fees?

To avoid paying a late fee on your ITR, you should file your return on or before the due date. This lets you avoid the penalty under Section 234F.

Also, if you have incurred any financial loss (like business loss or capital loss), you can only carry it forward to future years if the return is filed on time.

Proper tax filing also helps when you apply for loans, as lenders review your ITR to assess your financial stability. If you are planning to buy a home, having clean tax records can help you secure better loan terms. Check your loan offers with Bajaj Finserv to explore home financing options with competitive rates and flexible tenures. You may already be eligible, find out by entering your mobile number and OTP.

How to calculate penalty on income tax?

If you are filing an updated return [under Section 139(8A)] after missing the original and belated deadlines, a penalty will be added to your tax and interest. Let’s see how:

  • If the updated return is filed within 12 months from the end of the relevant assessment year, the penalty is 25% of the total of tax and interest.

  • If the return is filed after 12 months but within 24 months, the penalty increases to 50% of the total of tax and interest.

Be aware that both these penalties are levied in addition to the tax due.

How to file ITR after due date?

If you miss the due date for filing your ITR, you can still file a belated return. This must be done on or before 31st December of the assessment year. After this date, the portal will not allow filing unless you get approval.

If the delay happened because of a genuine reason, you can submit a condonation request to your Assessing Officer (A.O.) under Section 119(2)(b). In this request, you ask for permission to file the return late. Be aware that approval is granted only in valid cases.

Filing your ITR properly and on time helps maintain a good financial record, which is essential when applying for major loans like home loans. If you are considering purchasing a property, having your tax affairs in order can help you get better loan approvals. Check your eligibility for a home loan from Bajaj Finserv to see how you can benefit from their competitive rates and quick approval process. You may already be eligible, find out by entering your mobile number and OTP.

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