penalties for late filing income tax returns itr

Penalty for Late Filing of Income Tax Returns (ITR) in 2026

How much penalty to pay for late ITR filing? Check 2026 due dates, late fee, interest, ITR rules, and tips to avoid extra charges

Written by : Knowledge Centre Team

2026-02-11

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7 minutes read

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The Financial Year 2025-26 is almost coming to an end, and you should get ready to file your Income Tax Return (ITR) for the Assessment Year 2026-27. You need to file ITR with the Income Tax Department every year after the end of the  Financial Year. The income tax department has prescribed a defined date by which you can file the return without paying any ITR late fees. If you miss this deadline, you may have to pay a late filing of ITR penalty charges. The last date is known as the due date of filing ITR.

Key Takeaways

  • File your ITR on time to avoid late filing ITR fines, interest, and additional compliance issues

  • Belated returns can be filed after the due date, but only within the permitted deadline of the relevant Assessment Year

  • Late filing may attract a late fee under Section 234F and interest under Section 234A on unpaid tax

  • If you miss the final deadline, you may still be able to file an Updated Return (ITR-U) with additional tax and interest

  • Choose the correct ITR form (ITR-1 to ITR-7) based on your income type, taxpayer category, and filing eligibility

When to File Your ITR for FY 2025-26?

You can check the table below to know the due date depending on your category.

Taxpayer CategoryDue date for filing ITR (FY 2025–26)

Individuals / HUF / AOP / BOI (non-audit cases)

31 July 2026

Businesses/taxpayers requiring an audit

31 October 2026

Taxpayers required to file Transfer Pricing report (Form 3CEB)

30 November 2026

Revised return

31 December 2026

Belated (late) return

31 December 2026

Updated return (ITR-U)

31 March 2031 (within 4 years from the end of AY 2026–27)

* Audit report, in any case, should be filed by 30 September 2026

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Which ITR Form Should You File?

The Income Tax Department has notified seven different forms. You should file the correct ITR form on or before the specified due date. The ITR form you need to file depends on your income source, the amount you have earned in a financial year, and the taxpayer category you fall under (HUF, company, etc.).

  • ITR 1: You should use this form to file ITR if your total income includes:
    1. Income from a pension or a salary
    2. Income from one house property (if you bring the loss forward from previous years, it is not included)
    3. Income from other sources (excluding winning amount from horse race or lottery)
    4. Agricultural income up to ₹5000
  • ITR 2: It is for the use of an individual or a Hindu Undivided Family (HUF) whose total income for a financial year includes:
    1. Income from salary/pension, or
    2. Income from house property (rental income)
    3. Income from other sources, including winnings from the lottery and income from race horses

Also, your income from the above sources should be more than ₹50 lakh.

  • ITR 3: You can use this form if you have income from a proprietary business or are carrying on a profession. This form is applicable if your total income includes:
    1. Income from business or profession
    2. Income from intraday trading
    3. Income from Futures and Options (F&O) trading
  • ITR 4: Individuals, HUFs, and Partnership firms (other than LLPs) whose income includes:
    1. Income from a business or profession
    2. Business income, according to the presumptive income scheme under Section 44AD or 44AE
    3. Professional income, according to the presumptive income scheme under Section 44ADA
    4. Has long-term capital gains under Section 112A up to ₹1.25 lakh, provided there is no brought-forward or carry-forward capital loss
    5. Does not have income from more than one house property

Note: Your gross receipts should be up to ₹50 lakh, and expenses should not exceed 50% of your income (as the presumptive scheme assumes at least 50% profit).

  • ITR 5: It is for firms, Association of Persons (AOPs), Limited Liability Partnership (LLPs), Body of Individuals (BOIs), Estate of a deceased, Estate of an insolvent, Artificial Juridical Person (AJP), Business trust and investment fund. This form is generally applicable to:
    1. Firms
    2. Limited Liability Partnerships (LLPs)
    3. Association of Persons (AOPs) and Body of Individuals (BOIs)
    4. Artificial Juridical Persons (AJPs) and local authorities
    5. Co-operative societies and registered societies
    6. Trusts not required to file ITR-7
    7. Estates of deceased and insolvent persons
    8. Representative assessees (as specified under the Income Tax Act)
    9. Business trusts and investment funds

Note: Taxpayers required to file returns under Section 139(4A), 139(4B), or 139(4D) should file ITR-7 instead of ITR-5.

  • ITR 6: This form is for companies other than those claiming exemption under section 11 (Income from property held for charitable or religious purposes). This return can be filed only electronically. This form is applicable to:
    1. Companies as defined under Section 2(17) of the Income-tax Act
    2. Companies not required to file their return in ITR-7
    3. Companies not claiming exemption under Section 11
  • ITR 7: It is for persons, including companies, required to furnish returns under Section 139(4A) or Section 139(4B), Section 139(4C) or Section 139(4D). This form is applicable to entities such as:
    1. Charitable or religious trusts (Section 139(4A))
    2. Political parties (Section 139(4B))
    3. Specified institutions and funds (Section 139(4C))
    4. Universities, colleges, and similar institutions (Section 139(4D))

Penalties for Filing ITR Late

In the recent Union Budget, the government has introduced a stricter timeline for filing ITR. You are generally not allowed to file a belated or revised ITR beyond the 31st December of the relevant Assessment Year. If you file your ITR beyond the due date, you will have to pay income tax return filing late fees. Below are the rules around penalties:

  • If you file a return after the due date but before 31 December of the relevant AY, you will have to pay a late filing penalty under Section 234F of up to ₹5000 as a penalty.

  • In case of late income tax filing, you need to pay interest at a monthly rate of 1% on the outstanding tax payable under Section 234A from the day after the due date till the date of filing.

  • If you fail to file your return within an AY, you cannot file a belated return after 31 December of that AY, but you may still filean Updated Return (ITR-U) within the prescribed time limit, along with additional tax and interest, as applicable.

  • If the return is filed as an Updated Return (ITR-U) within 48 months from the end of the relevant AY, you will have to pay an additional 25% on the total amount of outstanding tax payable [if filed within 12 months from the end of the relevant AY (50% if filed after 12 months but within the allowed time window)] and the amount of interest accumulated on it.

The ITR U late fees and penalties are heavy if you fail to file ITR on time. Hence, you never miss filing ITR before the due date.

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Did You Know?

Even filing a Nil ITR can strengthen your financial record, since lenders may view regular ITR filing as proof of consistency and credibility


Source: Outlook Money

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How to Reduce Your Tax Liabilities?

If you are paying high taxes for a financial year, you should plan to reduce your tax liability. You can reduce your direct tax expense through deductions available under Sections 80C and 80D. Section 80C allows certain expenses and investments from which you can claim a deduction from your gross total income.

The majority of the tax-saving investments are either important for your life or help achieve an important life goal. For example:

  • Term Insurance Plan: You can buy a term insurance plan to provide life cover, and the premium you pay towards the insurance plan is eligible for a tax deduction under Section 80C. iSelect Smart360 Term Plan by Canara HSBC Life Insurance offers additional benefits, including the return of premium and in-built protection against critical illnesses.
  • Unit Linked Insurance Plans (ULIPs): ULIPs are a good option if you want to grow your capital aggressively, get life cover, and save taxes. Premiums may qualify for a deduction under Section 80C, subject to applicable limits and conditions.
  • Government Savings Schemes: If you prefer low-risk and government-backed options, you can consider schemes such as the Senior Citizens’ Savings Scheme (SCSS). Other popular government savings schemes include Public Provident Fund (PPF), National Savings Certificate (NSC), and Sukanya Samriddhi Yojana (SSY), which may also help you claim tax benefits under Section 80C.
  • Health Insurance: The premium you pay is eligible for a tax deduction under Section 80D. You may also claim an additional deduction for preventive health check-ups (within the overall Section 80D limit), subject to the conditions prescribed under the Income Tax Act.

Conclusion

If you don't want to make any investment to reduce your tax liabilities, you can opt for a new tax regime. The tax rates are lower in this regime, and most deductions and exemptions are not available.

Tax planning is a must for every individual. As discussed above, if you miss filing ITR on time, the penalties are high, whether it is for a penalty for a late filing of a business tax return, an invidual or an HUF. The first thing you need to ensure is that you file your taxes on time.

Finally, reduce your tax liabilities by investing in tax-saving options and availing the deductions while meeting your long-term life goals.

Glossary

  1. Financial Year: The 12-month period from 1 April to 31 March, in which you earn income for income tax
  2. Assessment Year: The year after a financial year when income is assessed and taxed
  3. Belated Return: An ITR filed after the due date but within the allowed deadline
  4. Updated Return: A return (ITR-U) filed after the deadline to update income, with extra tax/interest
  5. Late Filing Fee: A fee charged under Section 234F for filing ITR after the due date, as per tax rules
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FAQs

The answer to “how much fine for late ITR filing” depends on your income and the delay. Late filing attracts a fee under Section 234F (₹1,000 for income ≤ ₹5 lakh and ₹5,000 for income > ₹5 lakh), plus interest at 1% per month on unpaid tax under Section 234A, and you may also lose benefits like carry-forward of losses and certain deductions, even though a belated return (Section 139(4)) can still be filed up to the end of the Assessment Year (e.g., 31 December 2025 for FY 2024–25).

Section 234F: ₹1,000 if your total income is up to ₹5 lakh, and ₹5,000 if your income is above ₹5 lakh, applicable for returns filed late (within the allowed time). You’ll also pay interest on any unpaid tax, and may miss benefits like carrying forward losses.

  • Penalty Structure (Section 234F)

  • Income up to ₹5 Lakh: ₹1,000

  • Income above ₹5 Lakh: ₹5,000

Other Consequences:

  • Interest (Section 234A): 1% per month (or part of a month) on outstanding tax

  • Loss of Benefits: Cannot carry forward business losses or capital losses (except house property losses)

  • Delayed Refunds: If you're due a refund, it may get delayed

  • Loan/Visa Issues: Banks and consulates may reject applications due to a lack of ITR proof

No. The penalty for late filing of ITR 3 and the penalty for late filing of ITR 6 are not different. Both attract the same late filing fee under Section 234F (just like all other ITR forms).

Late Filing Fees (Section 234F):

  • For income above ₹5 Lakh: ₹5,000 if filed after the due date but before the end of the Assessment Year (AY)

  • For income up to ₹5 Lakh: ₹1,000 if filed after the due date but before the end of the AY

  • Very Late Filing: If filed even later (e.g., after 31 December of the AY), you cannot file a belated return, and you may need to file an Updated Return (ITR-U) with additional tax and interest instead

If you file your income tax return after 3 years (within the 4-year window), the 3-year ITR filing charges may include a late fee (up to ₹5,000 under Section 234F), 1% monthly interest on unpaid tax (Section 234A), loss of benefits like carry-forward of losses (except house property loss), and possible scrutiny. However, you can still file using the Updated Return (ITR-U) within 48 months from the end of the relevant Assessment Year, with additional tax (typically 50% if filed after 12 months but within the permitted time), or you may seek condonation of delay in genuine hardship cases.

Disclaimer - This article is issued in the general public interest and meant for general information purposes only. The views expressed in this blog are solely those of the writer and do not necessarily reflect the official policy or position of Canara HSBC Life Insurance Company Limited or any affiliated entity. We make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability, or availability with respect to the blog or the information, products, services, or related graphics contained in the blog for any purpose. Any reliance you place on such information is therefore strictly at your own risk. You should consult with a qualified professional regarding your specific circumstances before taking any action based on the content provided herein.

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