Late Filing Fee for Income Tax Return: Section 234F and Section 428
The law imposes a fee when a person who is required to furnish an income-tax return fails to file it within the prescribed time. For AY 2026-27 and earlier years, the relevant provision is Section 234F of the Income-tax Act, 1961. For Tax Year 2026-27 onwards, the corresponding provision is Section 428 of the Income-tax Act, 2025.
Section 234F of the Income-tax Act, 1961
Section 234F is titled Fee for default in furnishing return of income. It applies where a person who is required to furnish a return under Section 139 fails to furnish it within the time prescribed under Section 139(1).
| Total income | Late filing fee |
|---|---|
| Total income does not exceed Rs. 5,00,000 | Rs. 1,000 |
| Total income exceeds Rs. 5,00,000 | Rs. 5,000 |
The amount is a statutory fee, although it is often informally described as a late filing penalty. The old maximum fee of Rs. 10,000 is not the current Section 234F structure.
Who may be liable to pay the Section 234F fee?
The fee may arise where the taxpayer is legally required to furnish a return, the applicable due date under Section 139(1) has expired, and the return is furnished late. If a person is not legally required to furnish a return, Section 234F does not by itself create an independent return-filing obligation.
AY 2026-27: which law applies?
AY 2026-27 relates to income earned during FY 2025-26. It remains governed by the Income-tax Act, 1961. Accordingly, the late filing provision for that assessment year is Section 234F, even though filing or payment activity may occur after 1 April 2026.
The applicable filing deadline depends on the taxpayer category. Taxpayers should verify the due date applicable to their return rather than assume that one date applies to every assessee.
Section 428 of the Income-tax Act, 2025
From Tax Year 2026-27 onwards, the corresponding provision is Section 428 of the Income-tax Act, 2025. Section 428 is also titled Fee for default in furnishing return of income. It applies where a person required to furnish a return under Section 263 fails to furnish it within the prescribed time under Section 263(1).
| Total income | Fee under Section 428 |
|---|---|
| Total income does not exceed Rs. 5,00,000 | Not exceeding Rs. 1,000 |
| Any other case | Rs. 5,000 |
The Income Tax Department's transition guidance confirms that the fee amounts under Section 428 are the same basic amounts as under Section 234F.
Late filing fee and interest are different
A late filing fee and interest for delayed filing or delayed payment are separate consequences. Under the 1961 Act, Section 234F deals with the late filing fee, while Section 234A deals with interest for defaults in furnishing the return where its statutory conditions are satisfied. A taxpayer may therefore need to consider tax payable, applicable interest and the late filing fee separately.
Does zero tax payable automatically remove the late filing fee?
No. Whether a fee is attracted depends on the statutory obligation to furnish the return and whether it was furnished within the prescribed time. The fact that tax has already been covered by TDS, or that the final balance tax payable is nil, does not by itself eliminate a return-filing obligation that otherwise exists.
Belated return and e-verification
A return filed after the original due date may be treated as a belated return where the applicable law permits it. Taxpayers should also complete e-verification or submit ITR-V within the period prescribed by the Income Tax Department, because delayed verification can affect the date on which the return is treated as furnished.
Section 234F and Section 234-I
Section 234F should not be confused with Section 234-I of the Income-tax Act, 1961. Section 234F concerns failure to furnish the return within the Section 139(1) time limit. Section 234-I is a separate fee provision concerning specified delayed revised returns and applies subject to its own statutory conditions.
Examples
Example 1: If a person with total income of Rs. 4,80,000 is required to file a return governed by Section 234F and files after the applicable due date, the Section 234F fee is subject to the Rs. 1,000 ceiling.
Example 2: If a person with total income of Rs. 8,50,000 is required to file a return governed by Section 234F and files late, the statutory fee is Rs. 5,000.
Example 3: If the taxpayer's tax has substantially been covered by TDS but the taxpayer was nevertheless required to file the return, late filing can still attract the applicable fee.
Current position at a glance
| Period | Applicable Act | Provision |
|---|---|---|
| AY 2026-27 and earlier years, subject to the savings and transition provisions | Income-tax Act, 1961 | Section 234F |
| Tax Year 2026-27 onwards | Income-tax Act, 2025 | Section 428 |
Important points
- Section 234F imposes a fee for delayed furnishing of a return, not a penalty provision in its statutory wording.
- The fee is Rs. 1,000 where total income does not exceed Rs. 5 lakh and Rs. 5,000 in other cases, subject to the applicable statutory provision.
- AY 2026-27 remains under the Income-tax Act, 1961.
- Tax Year 2026-27 onwards is governed by the Income-tax Act, 2025, with Section 428 as the corresponding late-return fee provision.
- Interest and late filing fee are separate statutory consequences.
- Always check the filing due date applicable to the taxpayer category and year concerned.
Official references
For the current statutory text, forms, transition guidance and filing instructions, refer to the official Income Tax Department resources:
This article is for general information. The applicable Act, Rules, notifications, circulars, prescribed forms and official filing instructions should be checked for the relevant assessment year or tax year.