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Late Filing Penalty for Income Tax Returns for FY 2024-25: Understanding Section 234F
For individual taxpayers, the deadline to file Income Tax Returns (ITR) for Assessment Year (AY) 2025-26 — corresponding to Financial Year (FY) 2024-25 — is 31st July 2025 (unless extended by the Income Tax Department). Filing after the due date not only attracts a penalty but can also lead to several other consequences and inconveniences.
Let’s understand the impact of missing the ITR deadline under Section 234F of the Income Tax Act.
Penalty for Late Filing Under Section 234F
As per the amended provisions of Section 234F, if you fail to file your return within the prescribed timeline, you may have to pay a late filing fee of up to ₹5,000.
Earlier, the maximum penalty was ₹10,000, but from Financial Year 2020-21 onwards, it has been reduced to ₹5,000 to ease the burden on taxpayers.
For FY 2024-25, if you file your return:
On or before 31st July 2025 (or 30th September for audit cases and 31st October for transfer pricing cases), no penalty is applicable.
After 31st July 2025, a penalty of up to ₹5,000 can be levied.
However, if your total income does not exceed ₹5 lakh, the maximum late filing fee will be limited to ₹1,000.
Late Filing Fee Breakdown
| e-Filing Date | Total Income ≤ ₹5 lakh | Total Income > ₹5 lakh |
|---|---|---|
| On or before 31st July 2025 | ₹0 | ₹0 |
| 1st August 2025 to 31st December 2025 | ₹1,000 | ₹5,000 |
Shorter Window for Revising Your Return
If you discover any errors after filing your ITR, you have only until 31st December 2025 (end of the assessment year) to revise it.
Previously, taxpayers had a two-year window for revision, but now, it is restricted to 9 months from the end of the financial year.
Thus, filing early not only avoids penalties but also provides more time for corrections if needed.
Payment of Interest Under Section 234A
Apart from penalties, delayed filing leads to interest charges under Section 234A.
If you miss the due date, you must pay interest at 1% per month or part thereof on the unpaid tax amount.
The interest calculation begins immediately after 31st July 2025.
Also, remember — you cannot submit your ITR unless all outstanding tax liabilities are cleared.
Loss of Carry Forward Benefits
If you’ve incurred any losses during FY 2024-25 — such as capital losses or business losses — filing your return on time is crucial.
Late filing disqualifies you from carrying forward such losses for future set-off, except for losses from house property, which can still be carried forward even if filed late.
Delay in Receiving Income Tax Refunds
If you’re eligible for a refund, timely filing ensures speedy processing and early receipt of your refund.
Delays in filing will naturally push your refund further down the line.
Filing your ITR on time is not just about avoiding a late fee. It helps you save money, preserve your rights to carry forward losses, and ensures you get your refunds faster.
Mark your calendars and make sure to file your return by 31st July 2025 to stay compliant and hassle-free!
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