Penalty for Late Filing of Income Tax Return ( ITR) for FY 2025-26 (AY 2026-27)

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Are you ready to file your Income Tax Return (ITR) for AY 2026-27? The Central Board of Direct Taxes (CBDT) has released multiple ITR forms, including Form 1 to Form 7, for different categories of taxpayers. These forms help taxpayers accurately report income earned during FY 2025-26. The Income Tax Department is also expected to update the online filing utilities on the official e-filing portal, enabling taxpayers to conveniently submit returns online.

Every taxpayer should know the applicable ITR filing due dates based on their category, such as individuals, businesses, firms, or companies. Missing the deadline may lead to penalties, interest charges, delayed refunds, and loss of benefits like carrying forward certain losses. Understanding the late filing rules and applicable penalties can help taxpayers avoid unnecessary financial burdens and ensure smoother return processing during AY 2026-27.


Due date for revising your return

If you realise that you have made an error or missed some details while filing your Income Tax Return (ITR), the law allows you to correct it by submitting a revised return. This revision must be done on or before 31st December of the relevant assessment year. For instance, for FY 2024-25, the assessment year is AY 2025-26, and the revised return can be filed up to 31st December 2025. In practical terms, this gives taxpayers around nine months after the end of the financial year to fix mistakes. Filing your ITR well before the deadline gives you more time and flexibility to review and revise it if needed.


Who should file ITR, and what’s the due date 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 taxpayerDue 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 auditOctober 31, 2025
Domestic companiesOctober 31, 2025
Taxpayers who must submit a transfer pricing reportNovember 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 Finance 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.


Late filing fee details

If you file your Income Tax Return after the prescribed due date, you may have to pay a late filing fee under Section 234F of the Income Tax Act. The amount of penalty depends on your total taxable income for the financial year. Taxpayers with annual taxable income up to ₹5 lakh are required to pay a reduced penalty of ₹1,000 for delayed filing. However, if the taxable income exceeds ₹5 lakh, the late filing fee increases to ₹5,000. Filing the return within the due date helps taxpayers avoid these penalties entirely. Apart from penalties, delayed filing may also impact refund processing timelines and restrict the carry forward of certain losses to future financial years.

Annual Taxable IncomeLate Filing Fees u/s 234F
Up to Rs. 5 lakhRs. 1,000
More than Rs. 5 lakhRs. 5,000

Note: No late filing fee is applicable if the Income Tax Return is filed within the prescribed due date.


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.

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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 issuePenalty amount
Late filing under Section 234FRs. 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.

Penalty for late filing of income tax return for partnership firm

Partnership firms face these penalties:

Filing delayPenalty amount
Late filing under Section 234FRs. 5,000 as penalty for late filing of ITR
Interest under Section 234A1% per month on unpaid tax
Defective returnRs. 5,000 if not corrected within time
Non-compliance with tax audit0.5% 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 typePenalty amount
All companies under Section 234FRs. 10,000 flat penalty for late filing of ITR
Defective returnRs. 5,000 if not corrected after notice
Missing transfer pricing documentation2% of value of international transaction
Non-compliance with tax auditRs. 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 typePenalty amount
Charitable trusts under Section 234FRs. 5,000 as penalty for late filing of ITR
Religious trustsRs. 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 234A1% 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 periodPenalty amount
After due date but before December 31, 2025Rs. 1,000 as penalty for late filing of ITR
After December 31, 2025 but before March 31, 2026Rs. 1,000 as penalty for late filing of ITR
Interest on unpaid tax1% per month under Section 234A
Loss carry forwardNot 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 timelineFee for income up to Rs. 5 lakhFee for income above Rs. 5 lakh
Filed before due dateNo penalty for late filing of ITRNo penalty for late filing of ITR
Filed after due date but before December 31, 2025Rs. 1,000 as penalty for late filing of ITRRs. 5,000 as penalty for late filing of ITR
Filed after December 31, 2025Rs. 1,000 as penalty for late filing of ITRRs. 10,000 as penalty for late filing of ITR
Not applicable if total income below basic exemptionNo penalty for late filing of ITRNot 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.

Other topics you might find interesting

Income Tax Notice Section 142 1

Section 80CCD 2 of Income Tax Act

Section 194H of Income Tax Act

Section 80CCD 1 of Income Tax Act

Section 148 of Income Tax Act

Section 80GGC of Income Tax Act

Section 80DD of Income Tax Act

Section 80E of Income Tax Act

Home Loan Interest Deduction

Section 80CCD 1B of Income Tax Act

Section 80DDB of Income Tax Act

Section 80G of Income Tax Act

56 2 X of Income Tax Act

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Section 80GG Deduction of Income Tax Act


Penalty for late filing of income tax return ITR-7

For ITR-7 filers like trusts and institutions:

Entity typePenalty amount
Charitable/Religious institutionsRs. 5,000 as penalty for late filing of ITR
Educational institutionsRs. 5,000 as penalty for late filing of ITR
HospitalsRs. 5,000 as penalty for late filing of ITR
Research associationsRs. 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 Finance with rates starting from 7.25% 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.

How to pay a penalty for late filing of ITR?

Taxpayers can pay the late filing penalty for Income Tax Return through the official Income Tax e-Filing portal. After logging in, navigate to the “e-Pay Tax” section and select “Self-Assessment Tax (300)” as the payment category. The applicable penalty amount under Section 234F should be entered under the “Others” field while generating the challan. Payments can be made using net banking, UPI, debit cards, or other online payment methods. Once the challan is generated and payment is completed, taxpayers can use the challan details while filing their belated ITR for AY 2026-27.

What is the penalty for late filing of ITR 6?

ITR-6 is generally applicable to companies other than those claiming exemption under Section 11. If a company files ITR-6 after the prescribed due date, it may attract a late filing penalty under Section 234F. Companies with taxable income above Rs. 5 lakh may have to pay a penalty of up to Rs. 5,000 for delayed filing up to 31st December of the assessment year. If taxable income does not exceed Rs. 5 lakh, the maximum penalty is restricted to Rs. 1,000. Additionally, interest under Section 234A at 1% per month may apply on unpaid tax liabilities.

What is the last date for ITR filing 2026?

For Financial Year 2025-26 and Assessment Year 2026-27, the last date for filing Income Tax Returns for individuals not requiring tax audit is generally 31st July 2026. Taxpayers covered under audit provisions, such as businesses and certain professionals, may have different due dates as notified by the Income Tax Department. Filing returns within the prescribed deadline helps avoid late filing penalties, interest charges, delayed refunds, and restrictions on carrying forward losses. Taxpayers are advised to complete return filing early to ensure smoother processing and reduce last-minute technical or documentation issues.

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