ITR Late Fine: Delayed in Filing Income Tax Return? Know How Much Penalty You May Face

WBPAY Team3 weeks agoLast Updated: September 20, 2025

ITR Late Fine: This is important news for taxpayers. A significant financial penalty can be imposed for not submitting the Income Tax Return (ITR) within the specified date. According to Section 234F of the Income Tax Act, 1961, a penalty is imposed on taxpayers for filing ITR late. The details about this rule and how to avoid it are discussed below.

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Penalty for Late ITR Filing

Filing an income tax return is mandatory for every taxpayer. This process must be completed by the last date set by the government. If a taxpayer fails to file the ITR within this specified period, they will have to pay a penalty.

General Penalty: According to the Income Tax Act, a taxpayer may have to pay a penalty of up to ₹5,000 for late ITR filing. This amount can vary depending on your total income.
Concession for Small Taxpayers: However, for taxpayers whose total taxable income is less than ₹5 lakh, the penalty amount has been reduced to ₹1,000. This is a big relief for small taxpayers.

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It is important to remember that this penalty will be applicable for late ITR filing even if you do not have any tax due. That is, you will have to face this financial penalty just for the delay in filing the return.

Why is it important to file ITR on time?

Filing the income tax return on time is not just for avoiding penalties; it has many other benefits.

Ease of Getting Loans: ITR serves as an essential document when applying for a loan from a bank or any other financial institution.
TDS Refund: If your TDS (Tax Deducted at Source) has been deducted and you are eligible for a refund, you will get the refund quickly only if you file the ITR on time.
Carry Forward of Losses: In case of a business loss, it is necessary to file the ITR on time to carry forward and set off the loss against future profits.

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How to avoid the penalty?

The easiest way to avoid the penalty is to file your ITR before the deadline set by the Income Tax Department. The government announces this date every year. The last date to file ITR for the Financial Year 2024-25 or the Assesment Year 2025-26 is 15th September 2025. Therefore, as a responsible citizen, be aware of paying your taxes and filing your returns on time.

To avoid last-minute rushes, keep all necessary documents ready in advance, such as PAN card, Aadhaar card, bank statements, Form 16, and other investment proofs. This will make the ITR filing process much easier and error-free.