Delayed Income Tax Return? What to Do & Penalties

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If you've missed the income tax return deadline, you can still file an updated return (ITR U) if a tax liability arises, though penalties and interest may apply. Section 234F outlines penalties for late filing, which increase after December 31st but are capped. Interest under Section 234A is charged at 1% per month on unpaid tax. The deadline for revised ITRs has also been shortened, and future proposals aim to waive penalties for those only filing to claim refunds.

dipsankar

dipsankar (Querist)
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16 February 2024 sir,

What to do if return filing is delayed for any reason and 31st December passes.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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16 February 2024 File updated return with payment of 25% extra tax.

RAJA P M

RAJA P M (Expert)
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16 February 2024 Yes I agreed with Mr CA R Seetharaman Sir... Note: ITR U (updated return) will be file if any Tax liability arise.

Aashok Kumar Sharma

Aashok Kumar Sharma

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17 August 2025 Section 234F Penalty:
Income ≤ ₹5 lakh → ₹1,000
Income > ₹5 lakh → ₹5,000
Filing after Dec 31 → penalty can increase, but capped at ₹10,000.
Interest (Section 234A): Applies at 1% per month on unpaid tax from the due date until filing.
Extended ITR Filing Date for FY 2024–25: Deadline is September 15—but tax must be paid by July 31 to avoid penal interest.
Revised ITR Timeframe: Can now be filed only up to 9 months from end of relevant AY, not 2 years.
Operational Penalties: Late filing delays refunds and forfeits loss carry-forward eligibility.
Future Relief: Income Tax Bill, 2025 proposes to waive penalties for late filers who are filing only to claim refunds, even if not mandatorily required to file.

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