Filing income tax returns on time is a legal duty for all taxpayers in India. The penalty for late filing of ITR can be quite steep. Many taxpayers put off filing their returns, not knowing that this delay can lead to extra costs. The tax department has set clear rules about what happens when you miss the filing deadline.
The government brings in these penalties to make sure people file their taxes on time. This helps them collect revenue more efficiently. When you file late, not only do you pay more, but you also miss out on some benefits. You might not be able to carry forward losses or get your tax refund quickly.
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.
What is the penalty for late filing of income tax return
The penalty for late filing of ITR comes in two forms. First is the late fee under Section 234F. Second is the interest on any unpaid tax under Section 234A at 1% per month. This penalty for late filing of ITR applies if you miss the due date set by the Income Tax Department.
For FY 2024-2025, if you file your return after the due date, you must pay these charges. The fee changes based on your income level. The income tax law has clear rules about how much you need to pay if you file late.
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. |
Penalty fees for late filing of income tax return
The penalty fees for late filing of income tax return depend on when you file after the due date:
| Income range | Penalty amount |
| Total income up to Rs. 5 lakhs | Rs. 1,000 as penalty for late filing of ITR |
| Total income above Rs. 5 lakhs | Rs. 5,000 as penalty for late filing of ITR |
| If return filed after the end of the assessment year | Rs. 10,000 as penalty for late filing of ITR |
These fees apply to individual taxpayers. The penalty for late filing of ITR is in addition to any interest you might have to pay on unpaid taxes. The law does not allow any relief from these fees unless there are very special reasons.
Late filing fees u/s 234F
Section 234F of the Income Tax Act sets out the late fees structure:
| Filing time | Fee for income up to Rs. 5 lakh | Fee for income above Rs. 5 lakh |
| 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 |
| After December 31, 2025 but before March 31, 2026 | Rs. 1,000 as penalty for late filing of ITR | Rs. 10,000 as penalty for late filing of ITR |
| After March 31, 2026 | Not allowed without special notice | Not allowed without special notice |
The penalty for late filing of ITR increases the longer you wait. This means filing as soon as possible after missing the due date saves money. The tax department strictly enforces these fees for all late filers.
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.
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 individual
Individual taxpayers face these penalties:
| Income level | Late filing fee |
| Up to Rs. 5 lakhs | Rs. 1,000 as penalty for late filing of ITR |
| Above Rs. 5 lakhs | Rs. 5,000 as penalty for late filing of ITR |
| Any income level, filing after assessment year | Rs. 10,000 as penalty for late filing of ITR |
| Interest on unpaid tax | 1% per month under Section 234A |
The penalty for late filing of ITR for individuals depends on their income. Higher income means higher penalties. Taxpayers must also pay interest on any tax due from the original due date until the actual payment date.
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.
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.
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- Click on the 'APPLY' button on the home loan page of the Bajaj Finserv website.
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The process is designed to be hassle-free, much like filing your taxes on time helps avoid the penalty for late filing of ITR.
Eligibility criteria to get home loan from Bajaj Finserv
To qualify for a Bajaj Housing Finance Home Loan, you must meet these criteria:
- Be an Indian citizen residing in India. Bajaj Housing Finance Home Loans are for residents only.
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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.
Planning your taxes is much like planning for a home loan - it requires foresight and timely action. Speaking of home loans, Bajaj Housing Finance offers excellent options with:
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Just as filing your taxes on time helps you avoid penalties, choosing the right home loan helps you build your future without financial stress. Bajaj Housing Finance Home Loan makes homeownership more accessible with competitive interest rates and flexible terms.
Take action today to avoid the penalty for late filing of ITR and consider Bajaj Housing Finance for your home loan needs. Visit their website or contact a representative to start your journey toward owning your dream home with a top-up loan facility that gives you extra funds when needed.
