The cost of procrastination
Filing after July 31 does not just cause stress, it costs real money. The department applies penalties and interest automatically.
The penalties at a glance
| Charge | Rate |
|---|---|
| 234F late fee (income above Rs 5 lakh) | Rs 5,000 |
| 234F late fee (income up to Rs 5 lakh) | Rs 1,000 |
| 234F (income below exemption limit) | Rs 0 |
| 234A interest on unpaid tax | 1% per month |
The Section 234F fee is a flat Rs 1,000 or Rs 5,000, and Section 234A adds 1% per month on outstanding tax from August 1 until you file (Source: Income Tax Act, Sections 234F and 234A).
Three ways late filing hurts
- Late fee (234F): flat Rs 1,000 or Rs 5,000 depending on income.
- Interest (234A): 1% per month (or part month) on tax due.
- Lost carry-forward: capital and business losses cannot be carried forward (house-property loss is an exception).
Where to pay (portal path)
- Log in at incometax.gov.in.
- Go to e-File > e-Pay Tax.
- Pay tax plus the 234F fee, then file your return and e-verify.
What you should do
If you are already late, file immediately, because every new month adds another 1% of interest under 234A.
Common mistake
Assuming no tax due means no penalty. The 234F fee applies even on a nil-tax return once you cross the exemption limit.
How LastMinute ITR helps
LastMinute ITR helps you consolidate documents and compute exact dues so you can file your belated return fast. Start at /file, import at /file/import/documents, and reconcile at /file/import/mismatch.
LastMinute ITR is a companion tool, not affiliated with the Income Tax Department. You file and e-verify your return yourself on incometax.gov.in.