ITR filing: 10 penalties taxpayers should not ignore – from late filing fee to under-reporting defaults

A late filing fee of Rs 5,000 is applicable if the income tax return is submitted after the due date specified under Section 139(1). (AI image)

ITR filing FY 2025-26: When filing your income tax return, full, accurate and timely reporting of your income and tax dues is important. Failure to file income tax returns within the deadline or under/misreporting of your income invites penalties from the Income Tax Department.What are the various sections under which income tax penalties are applicable? When does a default happen and what are the penalty amounts that have to be paid by taxpayers? Here is a list of 10 top 10 penalties that can be imposed:

Section: 234F

When does default happen? Failure of the taxpayer to file the income tax return within the due date prescribed under Section 139(1).What is the penalty? A late filing fee of Rs 5,000 is applicable if the income tax return is submitted after the due date specified under Section 139(1). In case the total income does not exceed Rs 5 lakh, the late filing fee is Rs 1,000.Also Read | ITR filing FY 2025-26: Top 10 mistakes taxpayers should avoid for income tax returns online filing – check list

Section: 140A(3)

When does default happen? In case of non-payment, whether in full or in part, of the self-assessment tax, fringe benefit tax, interest, fee, or both, which are payable under Section 140A(1), according to an ET report.What is the penalty? The penalty is decided by the assessing officer. It is subject to a maximum of the amount of tax that is remaining in arrears.

Section: 234G

When does default happen? If you fail to submit the statement or certificate required under Section 35 or Section 80G for tax filing purposes, the report says.What is the penalty? A fee of Rs 200 is applicable for every day of the default.

Section: 158BFA(2)

When does default happen? This happens due to assessment of undisclosed income relating to the block period.What is the penalty? There is a penalty of 50% of the tax payable on the undisclosed income.Also Read | Income tax notices decoded: What every taxpayer should know about ITR filing to avoid scrutiny

Section: 271AA1

When does default happen? Failure to maintain the information and documentation prescribed under Sections 92D(1) or 92D(2).What is the penalty? 2% of the value of every international transaction or specified domestic transaction entered into.

Section: 221(1)

When does default happen? This one happens due to failure to pay taxes.What is the penalty? The penalty is imposed by the assessing officer. It cannot exceed the amount of tax in arrears.

Section: 234E

When does default happen? This is due to failure to furnish a statement within the time limit prescribed under Section 200(3) or the proviso to Section 206C(3).What is the penalty? For every day of delay there is a penalty of Rs 200. It is subject to a maximum amount equal to the tax deductible or collectible.

Section: 234I

When does default happen? Filing a revised income tax return.What is the penalty? If the revised return is filed after nine months but before 12 months from the end of the relevant assessment year, a fee of Rs 1,000 is payable where the total income does not exceed Rs 5 lakh. In all other cases, the applicable fee is Rs 5,000, the ET report says.Also Read | ITR filing FY 2025-26: How to calculate taxes under old income tax regime – explained

Section: 270A(1)

When does default happen? When you under-report or misreport income.What is the penalty? A penalty which is equal to 50% of the tax payable on the under-reported income is applicable. In case the under-reported income results from misreporting, the penalty increases to 200% of the tax payable on the under-reported income.

Section: 271A

When does default happen? This happens due to failure to keep, maintain or retain books of account, documents or other records as required under Section 44AA.What is the penalty? Rs 25,000.Also Read | ITR filing FY 2025-26: Old vs new income tax regime – how salaried taxpayers can lower tax outgo