Income Tax

Penalty (Fees) for Late filing of ITR for the Assessment Year 2019-2020

Section 234F has been inserted in Income Tax Act 1961 w.e.f. 01-04-2018 for levie of Fees/Penalty for late filing of Income Tax return.

As per section 234F of the Income Tax, 1961, without prejudice to the provisions of this Act, where a person required to furnish a return of income under section 139, fails to do so within the time prescribed in sub-section (1) of the said section, he shall pay, by way of fee, a sum of,—

  • five thousand rupees, if the return is furnished on or before the 31st day of December of the assessment year;
  • ten thousand rupees in any other case:


Provided that if the total income of the person does not exceed five lakh rupees, the fee payable under this section shall not exceed one thousand rupees.

Thus, late fee shall be applicable on all assesses who is liable to file income tax return under section 139 of Income tax Act, 1961.


There are other consequences for delay in filing of ITR under the Income Tax Act:

  1. Payment of Interest:

In case you do not file your Income Tax return before the due date, you are liabable of 1% Interest every month, or part of the month, on the amount remaining for payment of tax u/s 234A of the Income Tax Act 1961.

The interest shall be calculated from the date immediately after the due date of filing of Income tax Return, so you should file the Income Tax return before the due date to avoid the Interest cost.


  1. Carry forwarded of Losses Not allowed:

If there is any loss in the Income tax return during the year, the same shall not be allowed to be carried forwarded for the next year if the return is not filed within the due date.

So if you have any losses under the head capital gain or Business losses, make sure you file your income tax return before the due date to get the benefit set off of such losses with the Income in the future financial years.


  1. Delay in receiving of Refund:

In case you have paid excess Income tax or The TDS is more than the tax payable during the year, you must file your return before the due date to receive the refund at the earliest.

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