Costs of filing late
| Consequence | Detail |
|---|---|
| Late fee (234F) | ₹5,000; ₹1,000 if total income ≤ ₹5 lakh |
| Interest (234A) | 1% per month or part on unpaid tax from the day after the due date |
| Losses | Business and capital losses of the year can't be carried forward |
| Regime | The old regime can be chosen only in a return filed by the due date — belated returns use the new regime |
| Refund | Delayed; no interest on refund for the period of delay attributable to you |
After 31 December: updated return (ITR-U)
An updated return can be filed within 48 months from the end of the assessment year, but only to declare additional income, with additional tax of 25%, 50%, 60% or 70% of the tax and interest depending on how late it is filed. It can't be used to claim a refund or report a loss.
Worked example: salaried taxpayer filing in October
- 1Total income ₹9,00,000; tax unpaid after TDS ₹25,000.
- 2Due date 31 July 2026; filed 15 October 2026 — August, September and part of October = 3 months.
- 3Late fee = ₹5,000. Interest = 1% × ₹25,000 × 3 = ₹750.
Extra cost ≈ ₹5,750, plus any 234B/234C interest for short advance tax.
