For working professionals or business owners, the month of March becomes very important in India. It does not have to do anything with festivities or anything else. The actual rush is about the financial year ending and the ITR filings on hand. In India, if you are a working professional or are running a business, it becomes important for you to file your Income Tax returns before the Income Tax Deadline.
If you miss this deadline, then you have to pay the ITR late fees with a tax filing penalty. However, many do not know what the penalty is for late tax filing after the deadline. This blog will help you know the penalty for ITR late fees.
The deadlines for filing Income Tax Returns for the annual year of 2025-26
| Category of Taxpayer | Due date to file ITR |
| The Domestic Companies | October 31st, 2025 |
| Businesses or professionals whose accounts are subject to audit | October 31st, 2025 |
| Individuals, HUFs, AOPs and BOIs (accounts do not need audit) | September 15, 2025, which was extended from 31st July, 2025. |
| Taxpayers who submit a transfer pricing report | November 30, 2025 |
| Belated or revised returns for any category | December 31, 2025 |
The above table is for those individuals who come under the slabs set by the Income Tax Department of India. If you are earning an income above the minimum exemption limit, or even meet the certain conditions set by the Income Tax department, then it is your responsibility to file your Income Tax on time.
The Penalty for late filing of the Income Tax return for a private limited company
| Compliance Issue | Penalty amount |
| Late Filing under Section 234F | INR 10,000 for late filing of ITR |
| Carrying on business without filing (Section 271BA) | INR 10,000 flat penalty |
| Failure to file return (Section 271F) | INR 5,000 per day until this default continues. |
| Inaccurate details (Section 271AAB) | 30% to 60% of the tax sought to be evaded. |
It has become important for private companies to file their Income Tax on time because if they miss filing their ITR, then they attract huge penalties as they have a greater responsibility. The companies are also required to pay interest on any tax due at 1% per month.
Penalty for late filing of the Income Tax return for a Partnership Firm
| Filing Delay | Penalty Amount |
| Late filing under Section 234F | INR 5,000 as a penalty for late filing of ITR. |
| Defective Return | INR 5,000 if not corrected within the time. |
| Interest under Section 234A | 1% per month on unpaid tax. |
| Non-compliance with tax audit | 0.5% of the turnover or INR 1,50,000, whichever is less. |
ITR filing for a partnership firm is very important because if the company fails to make ITR payments, it affects every partner in that firm. The partnership firms with a turnover of INR 1 Crore or more must also get their accounts audited or face extra penalties.
Penalty for late filing of the Income Tax return for a company
| Company Type | Penalty Amount |
| Defective Returns | INR 5,000 if not corrected after notice. |
| Non-compliance with tax audit | INR 1,50,000 or 0.5.% of turnover, whichever is less. |
| All companies under Section 234F | INR 10,000 flat penalty for late filing of ITR. |
| Missing Transfer Pricing Documentation | 2% of the value of International transactions. |
The penalty for the late filing of the ITR for companies is designed to ensure that the companies comply with corporate tax compliance. The companies may also face reputational risks from non-compliance. Making timely filing even more important for business entities.
Penalty for late filing of the Income Tax Return for a trust
| Trust Type | Penalty Amount |
| Charitable trusts under Section 234F | INR 5,000 as a penalty for late filing of ITR. |
| Private Trusts (taxed as AOP) | Based on Income level (INR 10,000 or INR 5,000). |
| Religious Trusts | INR 5,000 as a penalty for late filing of ITR. |
| Interest under Section 234A | 1% per month on unpaid tax. |
The Trust organisations have to be very careful with their ITR filings because if they miss their Income Tax deadlines, then they might end up losing the benefits under the exemption of Income Tax slabs.
Penalty for late filing of ITR below 5 lakhs
| Filing Period | Penalty amount |
| Interest on Unpaid Tax | 1% per month under Section 234A |
| After December 31, 2025, but before March 31, 2026 | INR 1000 as a penalty for late filing of ITR. |
| Loss carry forward | Not allowed if filed after the due date |
| After Due date but before December 31, 2025 | INR 1000 as a penalty for the late filing of ITR. |
Even though the ITR filings for people with income below INR 5 lakhs come with a lower penalty amount, it still affects their monthly expenses. If you calculate the percentage, it will show 0.02% of the total yearly income. Hence, it is advised to everyone to file their ITR properly and on time.
Penalty for late filing of Income Tax return u/s 234F
| Filing Timeline | Fee for Income Up to INR. 5 lakhs | Fee for Income above INR 5 lakhs. |
| Files after the due date but before December 31, 2025 | INR 1000 as a penalty for late filing of ITR | INR 5,000 as a penalty for late filing of ITR. |
| Not Applicable if total income is below the basic exemption | No penalty for late filing of ITR | Not Applicable |
| Filed before due date | No penalty for late filing of ITR | No penalty for late filing of ITR |
| Filed after December 31, 2025 | INR 1000 as a penalty for late filing of ITR | INR 10,000 as a penalty for late filing of ITR |
Through these tables, you can clearly understand the penalty you have to pay after you miss the Income tax deadline. So, whether you are a working professional or an owner of any kind of business, you should file ITR returns to avoid ITR late fees and Tax Filing penalties.
Conclusion
To avoid ITR late fees and Tax Filing Penalty, it is always advised to file ITR and get its returns on time. Hence, in case you have missed your ITR filings this year and you still have time to file your ITR, then you can do so by visiting the official website.
In case you do not know how to file for ITR and get its returns, you can contact GoFinance for further assistance.
