Income Tax Penalty ITR Filing

Under section 234F of the Income Tax Act, there are certain changes which came in effect from 1 April 2017. The individual who fails to submit the ITR before the deadline is supposed to pay the penalty that is liable for paying of Rs.10000 which is known as the maximum penalties.

Income Tax Penalty

To avoid paying penalties, the individual is supposed to pay the ITR before the deadlines. The taxpayer fails to fill the ITR and if the tax returns filed on or before 31st Dec 2020 then the taxpayer is supposed to pay Rs 5,000 which is known to be a late fee.

IT Penality

e-Filing Date Total income above Rs. 50,000 Total income below Rs. 50,000
30th November 2020 Rs 0 Rs 0
Between 1st Nov 2020 to 31st Dec 2020 Rs 5,000 Rs. 1,000
Between 1st Jan 2021to 31st March 2021 Rs 10,000 Rs 1,000

As per the new law, if the tax is paid before Dec 31st, 2020 then the taxpayer is supposed to pay the penalty of Rs.5,000 and if it is paid prior Dec 31st, 2020 then an individual is supposed to pay Rs.10,000.

There is a certain extent of relief provided to the taxpayer who is supposed to pay the penalty of Rs.1,000 as it is valid only if an individual’s income is not more than Rs. 5 lakh.


There are certain scenarios where a penalty could be applicable to certain categories.

DELAY IN FILING of TDS RETURNS: For instance, if the taxpayer fails to file a TDS return on or before the due date, then the penalty is imposed on the taxpayer. The amount which is imposed on the taxpayer is about Rs.200 daily until the tax is filed.

DEFAULT IN SELF-ASSESSMENT TAX: If it is due even after the TDS and Tax credit, the tax has to be paid prior to filing the Income Tax Returns. The amount which is to be paid is calculated before the end of the financial year. The tax is can be paid in installments in the same year in which income is earned. It is known to be the Self-assessment tax. If the tax liability is more than Rs 10,000 then the person is eligible for paying self-assessment tax.

SCHEDULE FOR ADVANCE TAX: 100% of tax is liable by 15th march, 75% of tax is liable by 15th Dec, 45% of tax is liable by 15th September, 15% of tax is liable by 15th June.

MISTAKE IN REPORTING OF INCOME: Under the section of 270A (1) the one is penalized if they attempted to reduce the tax liability.

The Tax payable or under-reported penalty amount becomes 50% of income. This penalty can reach up to 200% in tax payable income or under-recorded.


According to section 277AA (1), the payers are required to maintain information and documents for 8 years from the end of the assessment year.

  • Under section 92 D (1) and 92D (2) are required if failed to maintain information and keep documents.
  • Even if failed to go through the transactions, and
  • Furnish and maintenance of fraudulent documents and information can charge to the penalty of 2% of the value of an individual international transaction or even in a specified domestic transaction that is entered into.


let us assume that you are filing your Income Tax Returns and there are certain errors in it. According to the new rules of the law, there is a certain period provided until the end of the assessment year to make relevant changes in the Income Tax Returns to correct your errors. Before the effect of the new law, the procedure to re-correct your mistakes is quite different.

The taxpayer has the time span of 2 years to revise and re-correct your Income Tax Returns. In the present day, the span to correct your mistakes is reduced to 1 year of the relevant assessment year. In that particular time, you can rectify your errors and can make the required changes.


If an individual fails to pay income tax return on or before the due date then the interest is levied upon the taxpayers. As per section 234A, the interest rate of 1% for every month is levied upon the individual. If an individual fails to pay tax then the taxpayer is not eligible of getting the Income Tax Returns. Delay in paying for your tax will certainly make an increase on the interest. Therefore, the more you delay paying tax the more interest is imposed on you.


In certain cases you may find there is a delay in receiving your refunds from the government authorities for excess payment of tax by you, then you are supposed to apply for the refund of the tax before the due date.

Income tax penalties
  • Rajendra Lora
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