ITR filing FY2025-26: Know the Penalties Where Taxpayers Can Avoid

Filing Income Tax Returns (ITR) accurately and within specified timelines is crucial for taxpayers. Non-compliance can result in various penalties imposed by the Income Tax Department, impacting finances significantly. 

ITR Filing FY2025-26: Key Penalties to Be Aware Of 

Section 234F specifies that a late filing fee of ₹5,000 applies if the ITR is submitted after the due date under Section 139(1).  

If the total income is under ₹5,00,000, the fee reduces to ₹1,000.  

Additionally, Section 140A(3) addresses penalties for non-payment or partial payment of the self-assessment tax, as per an Economic Times report. 

Penalties for Undisclosed and Under-Reported Income 

Section 158BFA(2) deals with penalties for assessing undisclosed income during the block period, with a penalty of 50% of the tax payable.  

Under Section 270A(1), under-reporting income can attract a penalty of 50% of the under-reported tax, rising to 200% if misreporting is involved. 

Documentation and Statement Non-Compliance Penalties 

Non-maintenance of information and documentation under Sections 92D(1) or 92D(2), as mentioned in Section 271AA1, can attract a penalty of 2% of every international transaction's value.  

Section 234G sets a fee of ₹200 per day for failing to submit the requisite statement or certificate under Section 35 or 80G. 

Read More: ITR Filing FY26: Income Tax Department Releases Excel Utility For ITR-5 And ITR-7! 

Other Penalty Provisions to Consider 

Section 234E outlines a penalty of ₹200 for each day of delay in furnishing statements under Section 200(3) or 206C(3).  

Section 234I specifies a fee between ₹1,000 to ₹5,000 if a revised return is filed after a 9 to 12-month window following the assessment year. 

Default Penalties Due to Bookkeeping and Tax Arrears 

As per Section 271A, failing to maintain required books of account or records entails a penalty of ₹25,000. Section 221(1) allows the assessing officer to impose penalties, not exceeding the unpaid tax amount, for failing to pay taxes. 

Conclusion 

Taxpayers must adhere to filing deadlines and accurately report income to avoid income tax penalties. Penalties range from ₹1,000 to ₹25,000 for different offences, while under-reporting income could mean paying up to 200% of the additional tax owed. 

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