Late Fee / Penalty for Filing Income Tax Return After Due Date: Section 234F of the Income-tax Act, 1961 and Section 428 of the Income-tax Act, 2025

What is the late filing fee for an Income Tax Return?

A taxpayer who is required to furnish an income-tax return but does not file it within the prescribed due date may be required to pay a late filing fee, in addition to interest on unpaid tax, where applicable.

For returns governed by the Income-tax Act, 1961, the late filing fee is prescribed under Section 234F.

The Income-tax Act, 2025 has now replaced the Income-tax Act, 1961 for income relating to Tax Year 2026-27 onwards. Under the new Act, the corresponding provision is Section 428, and the amount of late filing fee remains substantially the same.

The Income Tax Department has specifically clarified that AY 2026-27, relating to income earned during FY 2025-26, continues to be governed by the Income-tax Act, 1961, even though the return is filed after 1 April 2026.

Late Filing Fee under Section 234F Income-tax Act, 1961

Section 234F applies where a person who is required to furnish a return under Section 139 fails to furnish the return within the time prescribed under Section 139(1).

The present fee under Section 234F is:

Particulars	Late Filing Fee
Total income does not exceed ₹5 lakh	Nil
Total income exceeds ₹5 lakh	Rs. 5,000/-
Return filed within the prescribed due date	Nil

The current provision no longer has the old distinction under which ₹5,000 was charged if the return was filed by 31 December and ₹10,000 thereafter. The maximum fee was reduced by amendment and the present Section 234F generally prescribes ₹5,000, subject to the ₹1,000 ceiling where total income does not exceed ₹5 lakh.

Important
The ₹5 lakh threshold is based on total income, not merely the amount of tax payable.

Therefore, a person may have little or no tax payable after deductions, rebates or TDS credits and still be liable to the late filing fee if the return was required to be filed and was furnished after the applicable due date.

The Income Tax Department has also specifically cautioned that having zero tax liability does not by itself remove the obligation to file a return where the statutory filing requirement is otherwise attracted.

Section 234F Present Legal Position

The current Section 234F provides that where a person required to furnish a return under Section 139 fails to furnish it within the time prescribed under Section 139(1), the person is liable to pay a fee of ₹5,000.

However, where the total income of the person does not exceed ₹5 lakh, the fee cannot exceed ₹1,000.

The provision applies to returns required to be furnished for assessment years commencing on or after 1 April 2018.

Section 234F Income Tax Department

When is Section 234F applicable?

Section 234F may apply where:

1. The taxpayer is required to furnish an income-tax return;
2. The return is required to be filed under Section 139;
3. The taxpayer does not furnish the return within the due date prescribed under Section 139(1); and
4. The taxpayer subsequently furnishes the return as a belated return.

The fee is therefore linked to late filing of a return, rather than to the amount of tax actually payable.

The Income Tax Department describes Section 234F as a fee for default in furnishing the return within the time prescribed under Section 139(1).

What is a Belated Income Tax Return?

A belated return is an income-tax return furnished after the due date prescribed under Section 139(1), but within the period permitted under Section 139(4).

For AY 2026-27, the Income Tax Department states that a belated return under Section 139(4) may be furnished up to 31 December 2026, or before completion of assessment, whichever is earlier.

Thus, missing the original due date does not necessarily mean that the taxpayer has permanently lost the opportunity to file a regular/belated return.

However, the applicable late filing fee and, where relevant, interest and other consequences must be considered.

Late Filing Fee for AY 2026-27

AY 2026-27 relates to income earned during FY 2025-26.

Even though the return is being filed during FY 2026-27, the return for AY 2026-27 continues to be governed by the Income-tax Act, 1961.

Accordingly, Section 234F applies.

The Income Tax Department has clarified that the fee for AY 2026-27 is:

Total Income	Fee under Section 234F
Up to ₹5,00,000	₹1,000
Above ₹5,00,000	₹5,000

The belated return for AY 2026-27 can generally be furnished up to 31 December 2026, or before completion of assessment, whichever is earlier.

Due Date for Filing ITR for AY 2026-27

The due date depends upon the category of taxpayer and whether the taxpayer is subject to tax audit or other special provisions.

For example, the Income Tax Department presently states that for AY 2026-27, the due date for ITR-4 in the relevant non-audit category is 31 August 2026.

For taxpayers whose return is subject to audit, different due dates apply. The Income Tax Department's current material indicates, for example, that the tax audit report for AY 2026-27 is due on 30 September 2026 where the corresponding return due date is 31 October 2026, while transfer-pricing cases have a later return due date.

Therefore, taxpayers should not assume that the due date is the same for every taxpayer.

Example of Section 234F Late Filing Fee

Example 1 Total income below ₹5 lakh

Suppose Mr. A has total income of ₹4,80,000 and is required to file an income-tax return.

If he files the return after the applicable due date, the late filing fee under Section 234F cannot exceed:

₹1,000

Example 2 Total income above ₹5 lakh

Suppose Ms. B has total income of ₹8,50,000 and files her return after the applicable due date.

The Section 234F late filing fee will be:

₹5,000

Example 3 Tax already deducted through TDS

Suppose an employee has ₹7,50,000 of total income and the entire tax liability is substantially covered by TDS.

If the employee was required to file an ITR but files it after the due date, the fact that TDS has already been deducted does not automatically eliminate the Section 234F fee.

The late filing fee is concerned with the delay in furnishing the return, not merely with whether tax remains payable.

Section 234F is a Fee, Not Technically a Penalty
The expression "late filing penalty" is commonly used, but Section 234F technically imposes a fee for default in furnishing the return.

Therefore, the more accurate expression is:

"Late Filing Fee under Section 234F"

rather than simply "penalty under Section 234F."

This distinction is relevant because Section 234F itself describes the amount as a fee.

Late Filing Fee and Interest under Section 234A
Section 234F and Section 234A operate differently.

Section 234F
This is the prescribed fee for furnishing the return after the due date.

Section 234A
Interest may be payable where the return is furnished after the due date and there is unpaid tax.

The Income Tax Department currently states that interest under Section 234A is generally calculated at 1% per month or part of a month on the relevant unpaid tax amount, subject to the statutory provisions.

Consequently, a taxpayer filing a belated return may have to pay:

Tax payable + applicable interest + late filing fee

The exact computation depends on the taxpayer's circumstances and payments already made through TDS, TCS, advance tax and self-assessment tax.

What happens if the taxpayer has no tax payable?

A taxpayer may still be required to pay the late filing fee even where the final tax payable is nil, provided the taxpayer was legally required to furnish the return and the return was filed after the prescribed due date.

The Income Tax Department specifically explains that Section 234F is a fee for late furnishing of the return and separately deals with interest on unpaid tax.

Thus:

Nil tax liability = automatically nil Section 234F fee.

Can the Late Filing Fee be Avoided?
The simplest way to avoid Section 234F is to furnish the return within the applicable due date under Section 139(1).

If a taxpayer is not required to furnish an income-tax return under the applicable provisions, Section 234F does not create an independent obligation to file a return merely for the purpose of collecting the fee.

The Income Tax Department states that no Section 234F fee is payable where the assessee is not liable to furnish a return of income.

What if the ITR is Uploaded but Not E-Verified?
Filing the return is not necessarily complete merely because the return data has been uploaded.

The Income Tax Department currently provides a 30-day period for e-verification or submission of ITR-V.

Where the return is uploaded within the due date but is e-verified or ITR-V is submitted after 30 days, the date of e-verification/ITR-V submission can be treated as the date of furnishing the return, with the consequences of late filing following where applicable.

Therefore, taxpayers should complete e-verification promptly after submitting the ITR.

Income-tax Act, 2025 New Provision for Late Filing

A major change from 1 April 2026 is the introduction of the Income-tax Act, 2025.

For income relating to Tax Year 2026-27 onwards, the new Act applies.

The corresponding provision for late filing is Section 428 of the Income-tax Act, 2025.

The Government has clarified that the late filing fee under Section 428 is the same as the fee under the old Section 234F:

Total Income	Late Filing Fee under Section 428
Up to ₹5 lakh	₹1,000
Above ₹5 lakh	₹5,000

Thus, the transition to the new Act does not increase the basic late filing fee.

Important Transition: AY 2026-27 vs Tax Year 2026-27
Taxpayers should carefully distinguish between these two periods.

AY 2026-27

This relates to income earned during FY 2025-26.

It continues to be governed by the Income-tax Act, 1961.

Therefore:

Late filing fee = Section 234F

Tax Year 2026-27

This relates to income earned during FY 2026-27, beginning 1 April 2026.

It is governed by the Income-tax Act, 2025.

Therefore:

Late filing fee = Section 428

The return for Tax Year 2026-27 will generally become due after the end of that tax year, i.e. during 2027.

Comparison of Old and New Law

Particular	Income-tax Act, 1961	Income-tax Act, 2025
Applicable to	AY 2026-27 and earlier years, subject to transition provisions	Tax Year 2026-27 onwards
Late filing provision	Section 234F	Section 428
Income up to ₹5 lakh	₹1,000	₹1,000
Income above ₹5 lakh	₹5,000	₹5,000
Nature	Fee for delayed furnishing of return	Fee for delayed furnishing of return

The Income Tax Department expressly confirms that the amount under Section 428 is the same as under Section 234F.

Section 234F and Section 234-I Do Not Confuse Them

The Income-tax Act, 1961 now contains another provision, Section 234-I, relating to the fee for furnishing a revised return after the specified period.

The Income Tax Department explains that Section 234-I applies to revised returns furnished beyond nine months but before twelve months from the end of the relevant assessment year, with a fee of ₹1,000 where total income does not exceed ₹5 lakh and ₹5,000 in other cases.

Therefore, Section 234F should not be confused with Section 234-I.

Section 234F → late filing of original return

Section 234-I → prescribed fee for certain late revised returns

Important Points to Remember

1. Section 234F imposes a late filing fee, not technically a penalty.
2. For returns governed by the Income-tax Act, 1961, the current fee is ₹1,000 where total income does not exceed ₹5 lakh.
3. Where total income exceeds ₹5 lakh, the fee is ₹5,000.
4. The old ₹10,000 late fee structure is not the current law.
5. Section 234F applies where a person required to file an ITR fails to furnish it by the prescribed Section 139(1) due date.
6. Interest under Section 234A may additionally apply where there is unpaid tax.
7. AY 2026-27 continues to be governed by the Income-tax Act, 1961.
8. For Tax Year 2026-27 onwards, the corresponding provision is Section 428 of the Income-tax Act, 2025.
9. Section 428 retains the same basic late filing fee of ₹1,000/₹5,000.
10. A return should also be properly e-verified within the prescribed period after upload.
11. A taxpayer should always verify the applicable due date because different categories of taxpayers have different return-filing deadlines.
12. A taxpayer who is not legally required to furnish a return is not liable to Section 234F merely because a return was not filed.

Conclusion
The law relating to late filing of income-tax returns has changed from the position stated in many older articles.

For returns governed by the Income-tax Act, 1961, including AY 2026-27, the current Section 234F generally provides a late filing fee of ₹1,000 where total income does not exceed ₹5 lakh and ₹5,000 in other cases.

From Tax Year 2026-27 onwards, the new Income-tax Act, 2025 applies and Section 428 provides the corresponding late filing fee. The amounts remain ₹1,000 and ₹5,000 respectively.

Therefore, the earlier information stating that the fee could be ₹10,000 should not be used as the current position.

Taxpayers should also distinguish the late filing fee from interest under Section 234A and from the separate fee applicable to certain revised returns under Section 234-I.

This article is intended for general information and should be read with the applicable statutory provisions, notifications, circulars and rules for the relevant assessment year/tax year.