For the 1st time Late Fees introduced in indirect tax system at wide rage in Goods and Services Tax. Initially the Fees was very high then it would be decrease by govt through notification.  The system is not ready some time invalid request or some time authorized login or request like wise error SMS in GST system and in this system user have to work and some time pay the Late fees.  Sometime the Assessee send date to professional as on last date then may converting tax due in Late Fees. The Late fees under GST as under:

For Nil Return – 10 per day as per CGST ( Total 20 = 10 CGST + 10 SGST )

Other Than Nil – 25 per day as per CGST ( Total 50 = 25 CGST + 25 SGST )

Income Tax Return is required to be furnished before 31st July/ 30th Sept of the Assessment Year. However, if the return is not filed before the due date, both interest and penalty would be levied for the late filing of income tax return.If the income tax return is not filed before the due date of filing of income tax return i.e. before 31st July/31st Sept (as the case may be), a belated return under Section 139(4) can be filed at any time before the end of the relevant assessment year

In the 2018 Budget announcement relating to a new section, 234F has been announced by the Government. section 234F will be applicable for returns filed for the financial year 2017 – 18 onwards . This means that a penalty as mentioned below will not be applicable for income tax returns filed for the financial year 2016-17 or assessment year 2017- 18 and before.

Under Section 234F, an individual would have to pay a penalty of upto Rs 10,000 for late filing income tax return after the due dates as follows:

  • A penalty of Rs.5000 will be applicable for returns filed after the due date of 31st July but before 31st December of the relevant assessment year.
  • In case an income tax return is filed after 31st December, a penalty of Rs.10,000 will be applicable.

For assesses with a taxable income of upto Rs.500,000, a reduced penalty of Rs.1000 late fees will be applicable.

Why Assessee should file intime income tax return ?

Taxpayers who do not file their income tax return intime can be subject to penalty , Late Fees and charged an interest on the late payment of income tax. In addition to the penalty , Late  fees and delayed interest, the taxpayer would also have to face the following consequences:

  • The taxpayer will not be able to claim any interest on the delay in a refund for the period of delay in filing income tax return.
  • Some income tax deductions under Chapter VI will not be allowed if the taxpayer files late return.
  • The taxpayer will not be able to set off losses incurred (other than house property loss) even in case of Special Business.
  • ITR-4, Only 8% are minimum Profit. 6% are not allowed incase of late return.

Penalty for Late Filing of Income Tax Return under Section 276CC

In some cases, where the taxpayer has willfully and deliberately failed to file income tax return action can be initiated under Section 276CC of the Income Tax Act. The penalty under Section 276CC for late filing of income tax return where the amount of tax payable or evaded is more than Rs.25000 is imprisonment of 6 months to 7 years and a fine. In all other cases prosecuted under Section 276CC, the penalty would be 3 months to 3 years of imprisonment with fine.

“If a person willfully fails to furnish in due time [the return of fringe benefits which he is required to furnish under sub-section (1) of section 115WD or by notice given under sub-section (2) of the said section or section 115WH or] the return of income which he is required to furnish under sub-section (1) of section 139 or by notice given under [clause (i) of sub-section (1) of section 142] or section 148 [or section 153A], he shall be punishable,

(i) in a case where the amount of tax, which would have been evaded if the failure had not been discovered, exceeds twenty five hundred thousand rupees, with rigorous imprisonment for a term which shall not be less than six months but which may extend to seven years and with fine;

(ii) in any other case, with imprisonment for a term which shall not be less than three months but which may extend to three years and with fine”

However, these penalties are levied in a very rare case. In most of the cases, the taxpayer is only required to pay interest @ 1% for late deposit of income tax.

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Yogesh Parmar have vast knowledge in the field of Goods and Services Tax (GST). He is regularly conducting seminars on GST at various location for business personal to provide the knowledge about impact of GST on their business and how compliance should be made. He is founder of "" through which he is sharing his knowledge and latest amendments, circulars, notifications etc related to all type of taxes. He is also associated with some software development companies and providing advisory service and help to understand technical aspect of GST. He is also serving as functional manager as well as tester to those company which is developing software for GST.


  1. there is also an disadvantage of filling belated return, that it can not be revised later on if any error of mistake was there in it.



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