Penalty for Late Filing of ITR in Income Tax Act 2025
Penalty for Late Filing of ITR in New Income Tax 2025 : Clause 428 of income Tax Bill 2025 specifies the fee for failing to file a return of income under Section 263. Here’s the fee structure in a tabular format:
| Total Income | Fee Amount |
|---|---|
| Exceeds ₹5,00,000 | ₹5,000 |
| Does not exceed ₹5,00,000 | Not exceeding ₹1,000 |
It’s important to note:
- “Not exceeding ₹1,000” means the actual fee could be less than ₹1,000, but it cannot be more. The exact amount within this limit is likely determined by rules or regulations.
- This fee is in addition to any other penalties that might apply.
Relevant Clause 428 of Income Tax Bill 2025
Fee for default in furnishing return of income.
428. Without prejudice to the provisions of this Act, where, a person required to furnish a return of income under section 263 fails to do so within the time as prescribed in section 263(1) he shall pay, by way of a fee,––
(a) a sum of five thousand rupees, if the total income of such person exceeds five lakh rupees;
(b) a sum not exceeding one thousand rupees in any other case.
Relevant Section 234F of Income Tax Act 1961
Comparison of Income tax Bill 2025 and Income Tax Act 1961
Here’s a comparison of Clause 428 of Income Tax Bill 2025 and Section 234F of Income Tax Act 1961 in a table format:
| Feature | Clause 428 of Income Tax Bill 2025 | Section 234F of Income Tax Act 1961 |
|---|---|---|
| Applicability | Applies to failure to furnish a return of income under Section 263 | Applies to failure to furnish a return of income under Section 139 |
| Time Limit for Filing | Failure to file within the time prescribed in Section 263(1). | Failure to file within the time prescribed in Section 139(1). |
| Fee Amount (Income > ₹5 Lakhs) | ₹5,000 | ₹5,000 |
| Fee Amount (Income ≤ ₹5 Lakhs) | Not exceeding ₹1,000 | Not exceeding ₹1,000 |
| Specific Income Threshold Language | “if the total income of such person exceeds five lakh rupees;” | “if the total income of the person does not exceed five lakh rupees” (using a proviso). |
| Legal Wording | Uses slightly less precise language. | Uses more precise legal wording, including a proviso. |
| Related Section | Linked to Section 263. | Linked to Section 139. |
| Effective Date/Applicability | No specific date mentioned in the provided text. | Specifically applies to returns for assessment years beginning on or after April 1, 2018 (as per sub-section 2). |
| Nature of Charge | Described as a “fee.” | Described as a “fee.” |
| Overall Context | Appears to be a more general provision for failure to file returns under a specific section. | A dedicated section specifically for late filing fees for original returns. |
Key Differences Summarized:
- Primary Difference: Section 234F deals specifically with the late filing fee for original income tax returns (under Section 139). Clause 428 deals with a fee for failure to file a return under Section 263, which likely pertains to revised returns or returns filed in response to a specific notice. They are not interchangeable.
- Clarity and Structure: Section 234F is more structured and clearly defines the applicability, especially regarding the assessment year. Clause 428 is less explicit in its scope.
- Specificity: Section 234F is a dedicated provision for late filing fees related to original returns, while Clause 428 seems to be a more general provision covering fees for non-compliance with return filing requirements under a different section.
Due Dates for Filing Income Tax Return (ITR) as per Income Tax Bill 2025
| Sl. No. | Person / Entity | Due Date |
|---|---|---|
| 1 | A company | 31st October |
| 2 | A person (other than a company) whose accounts are required to be audited under this Act or any other law | 31st October |
| 3 | A partner of a firm whose accounts are required to be audited under this Act or any other law OR the spouse of such partner (if Section 10 applies) | 31st October |
| 4 | An assessee (including a partner of a firm or spouse of such partner) who is required to furnish a report under Section 172 | 30th November |
| 5 | Any other assessee (individuals, small businesses, etc., whose accounts are not required to be audited) | 31st July |
Examples:
Example 1 (Company): ABC Pvt. Ltd. is a company. Their due date is October 31st. They file their ITR on November 15th. Their income is ₹10,00,000. Penalty: ₹5,000.
Example 2 (Audited Individual): Mr. Verma is a self-employed professional whose accounts are required to be audited. His due date is October 31st. He files on November 5th. His income is ₹7,00,000. Penalty: ₹5,000.
Example 3 (Individual – ): Ms. Sharma is a salaried individual whose accounts are not required to be audited. Assuming her due date is July 31st , and she files on August 10th, and her income is ₹4,00,000. Penalty: Up to ₹1,000 ).
Example 4 (Individual ): Mr. Kumar is a salaried individual whose accounts are not required to be audited. Assuming his due date is July 31st, and he files on September 15th, and his income is ₹6,00,000. Penalty: ₹5,000.
ITR filing Due Date and Late Filing Fees
| Sl. No. | Person/Entity | Due Date | Late Filing Fee (Section 234F/ Clause 428) |
|---|---|---|---|
| 1 | A company | 31st October | ₹5,000 (if income > ₹5,00,000); Up to ₹1,000 (if income ≤ ₹5,00,000) |
| 2 | A person (other than a company) whose accounts are required to be audited | 31st October | ₹5,000 (if income > ₹5,00,000); Up to ₹1,000 (if income ≤ ₹5,00,000) |
| 3 | Partner of a firm (whose accounts are audited) OR spouse of such partner (if Section 10 applies) | 31st October | ₹5,000 (if income > ₹5,00,000); Up to ₹1,000 (if income ≤ ₹5,00,000) |
| 4 | An assessee required to furnish a report under Section 172 | 30th November | ₹5,000 (if income > ₹5,00,000); Up to ₹1,000 (if income ≤ ₹5,00,000) |
| 5 | Any other assessee (individuals, small businesses, etc., whose accounts are not required to be audited) | July 31st, | ₹5,000 (if income > ₹5,00,000); Up to ₹1,000 (if income ≤ ₹5,00,000) |
Refer