In India, for the assessment year 2025-26, the late filing fee for ITR (Income Tax Return) under Section 234F is ₹5,000 for income exceeding ₹5 lakh, or ₹1,000 if income is below that amount. No penalty applies if total income is below the basic exemption limit. Late payments also incur 1% monthly interest.
The penalty for late filing of ITR is Rs. 1,000 for income up to Rs. 5 lakhs and Rs. 5,000 for higher incomes, plus 1% monthly interest on unpaid tax.
The failure-to-pay penalty is one-half of one percent for each month, or part of a month, up to a maximum of 25%, of the amount of tax that remains unpaid from the due date of the return until the tax is paid in full.
To avoid the late fee under Section 234F of the Income Tax Act, ensure you file your income tax return on time for the applicable assessment year.
The IRS will not charge you an underpayment penalty if:
In case you miss filing the ITR within the due date u/s 139(1), you can still file your Income Tax Return, but you may be required to pay a late filing fee of up to ₹5000/-. Additionally, you will also be required to pay interest on the tax liability (if any).
ITR Filing Charges:
Salaried ITR Filing: ₹1,000/- Capital Gain / Share Gain-Loss ITR: ₹1,500/- Business ITR – 44AD Return: ₹2,000/- All other ITR Filing: ₹3,000/-
The 12 Most Common Income Tax Filing Mistakes to Avoid
An updated return can be filed at any time within 48 months [12 months till 31-03-2025] from the end of the relevant assessment year.
If you don't pay the amount shown as tax you owe on your return, we calculate the failure to pay penalty in this way: The failure to pay penalty is 0.5% of the unpaid taxes for each month or part of a month the tax remains unpaid. The penalty won't exceed 25% of your unpaid taxes.
Generally, the amounts an individual withdraws from an IRA or retirement plan before reaching age 59½ are called "early" or "premature" distributions. Individuals must pay an additional 10% early withdrawal tax unless an exception applies.
The IRS $600 rule refers to a change in reporting requirements for third-party payment apps (like Venmo, PayPal) for taxable income from goods and services, where platforms must send a Form 1099-K if you receive over $600 in a year, intended to capture gig economy/side hustle income, though delays and phased implementation have adjusted the timeline, with current rules for 2024 using a higher threshold ($5,000) before fully phasing to $600 for future years, but remember all taxable income, regardless of form, must always be reported.
For NRIs who have not yet filed their Income Tax Returns for FY 2024–25 (AY 2025–26), the last opportunity to file a belated return is 31 December 2025. Filing after the due date attracts a late fee under section 234F and may result in the loss of certain tax benefits.
If you have not filed your Income Tax Return before the due date and you have unpaid tax liabilities, you will also have to pay interest under section 234A. This interest is levied on the amount of unpaid tax at the rate of 1% per month or part of the month during which there is a delay.
The Central Board of Direct Taxes (CBDT) has decided to extend the due date of furnishing of Return of Income under sub-Section (1) of Section 139 of the Act for the Assessment Year 2025-26, which is 31st October, 2025 in the case of assessees referred in clause (a) of Explanation 2 to sub-Section (1) of Section 139 of ...
Yes, you can file your ITR without a CA via our DIY plans. Click here to check out the plans. What is assisted filing? Get an expert to do your taxes for an individual with all kinds of income.
Last date: 31st December of the assessment year (For FY 2024-25, due date is 31st December 2025). Multiple revisions: You can revise the return many times with no penalties for revision. Belated returns: Even belated returns can be revised.
No Hidden Fees A fixed fee of ₹2,499 for any ITR, covering all income sources, including salary, professional income, capital gains, crypto, and more.
The average cost of tax preparation by a Certified Public Accountant (CPA) in the U.S. typically ranges from $200–$500 for individual returns and $1,000–$5,000 for small business or corporate returns. Costs depend on the complexity of your taxes, the number of forms required, and your location.
You might have to pay IRS penalties and interest if you file your federal income tax return after the April deadline, your due date isn't extended, and you end up with a tax bill. First, the IRS charges a 5% penalty per month on any tax due if your return is filed late. The penalty is capped at 25% of the tax owed.
As an NRI, PIO, or OCI, you may be required to file tax returns in India if your Indian income surpasses the specified threshold or if you seek to claim refunds for excess tax deductions. While filing an ITR is mandatory only under certain circumstances, voluntary filing can be beneficial in many ways.
One of the features is “Pay later,” which enables an individual to file an Income tax return (ITR) before making the tax payments. Previously, an ITR could only be filed after the due taxes were paid. It is inconvenient for taxpayers, especially those waiting for salary or other income sources.