What is the Interest and Penalty for late filing of ITR

For every assessment year, the last date for filing your Income Tax Return is 31st July for the non-audited assessee, and for the audited assessee, the last date is 31st October (Unless Extended). Still, if you are not able to file your Income Tax Return in time then the Income Tax Department will penalize you and imposed a Penalty for late filing of ITR

Due Date of Income-tax Return

The due date for Income Tax Returns are as follow-

ParticularsDue Dates
Income Tax Return- Non Audited assessee31st July
Income Tax Return- Audited assessee31st October

Interest and Penalty for late filing of ITR

If the assessee did not file their Income Tax Return in the given time then the interest and penalty for late filing of ITR will be as follow-

Penalty for Late Filing of ITR- Section 234F

According to the rules amended by the department, section 234 comes into effect from 1st April 2017, which imposed a penalty of up to Rs. 10,000/-, and the provision of this section shall apply in respect of return of income required to be furnished for the assessment year commencing on or after the day 1st day of April 2018.

Also Read- List of Documents required for filing Income Tax Return

Section 234F. Fee for default in the furnishing of return of Income- As per this section, where a person required to submit a return of Income Tax under section 139, fails to do so within the time prescribes in subsection (1) of said section, he shall be liable to pay penalty as under.

Chart for Late filing fee imposed u/s 234F

E- FilingTotal Income below Taxable LimitTotal Income below Rs. 5,00,000Total Income above Rs. 5,00,000
Before 31st July/31st OctoberRs. 0Rs. 0Rs. 0
After Due Date and before 31st DecemberRs. 0Rs. 1000Rs. 5000
After 31st DecemberRs. 0Rs. 1000Rs. 10000
Penalty For Late Filing of ITR

Interest for Late Filing of ITR- Section 234A

Apart from the penalty for late filing of ITR, if the assessee has not filed the Income-tax Return before the due date, then he is also liable for Interest u/s 234A of the Income Tax Act.

Section 234A- Income Tax Act had made a provision of Interest payment for the late filing of Income Tax Return. Interest u/s 234A is calculated @ 1% for every month or part of the month on the amount of tax payable. This interest is calculated from the due date to the date of the actual filing of the Income Tax Return.

234A Interest Calculation- For the Interest calculation under section 234A, we can understand it with an example.

Read Full Article Here- Interest calculation under Section 234A, 234B, and 234C of Income Tax Act, 1961

Example for Interest under section 234A

Mr. Kiyaan has failed to file his Income Tax Return on which the tax payable was Rs. 2,00,000. The due date was 31st July 2021 and he submits his Income Tax Return on 2nd December 2021. The Interest calculation will be as follow-

Tax Payable- Rs. 2,00,000.

Delay in filing of Return- From 31st July to 2nd December i.e 5 Months

Interest under section 234A- 2,00,000*1%*5= Rs. 10,000.

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Frequently Asked Questions- FAQs

  1. How much is the penalty for late filing of ITR?

    For late filing of ITR, the Income Tax department will levy a penalty, which is up to Rs. 10,000 for that particular year. However, no penalty will be charged if your ITR is below taxable.

  2. What happens if you miss income tax deadlines?

    If you don’t file your income tax return and miss the income tax deadlines, the Income Tax department will levy a penalty, which is up to Rs. 10,000 for that particular year. However, no penalty will be charged if your ITR is below taxable.

  3. What happens if I submit my tax return late?

    If you submit your tax return late, the Income Tax department will levy a penalty, which is up to Rs. 10,000 for that particular year. However, no penalty will be charged if your ITR is below taxable.

  4. Can I file ITR after due date?

    Yes, you can file your ITR late but for that reason, you need to forgo some benefit of timely filing of ITR and you may need to pay penalty u/s 234F and/or interest u/s 234A.

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Disclaimer: The information contained in the above article are solely for informational purpose after exercising due care. However, it does not constitute professional advice or a formal recommendation. The author does not own any responsibility for any loss or damage caused to any person, directly or indirectly, for any action taken on the basis of the above article.

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Compiled by- CA Chirag Agarwal (Practicing Chartered Accountants)

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