What’s the penalty fee for late ITR filing?
As per the provisions of the IT act, if you are filling your ITR after the stipulated deadline you can be levied a penalty under Section 271F of the IT act. The tax officer reserves the right to consider your delayed ITR and may impose a penalty of as high as Rs. 5000 for failing to file your tax return on time.
A delay in filing ITR can attract penal charges and in some cases legal action too. It’s important to note that as per Budget 2017 a person will be fined Rs. 5,000 if s/he does not file returns by the 31 July due date. This amount will be doubled to Rs. 10,000 if a person doesn’t file returns by 31st December of the assessment year. These new penalties are applicable from assessment year 2017-2018. For small income individuals, people who earn up to Rs. 5 lakhs, the late fee will not exceed Rs.1,000.
The penalty fee was discretionary earlier but Budget 2017 has made it a mandatory levy on all who delay filing their returns. If during assessment it is found that a person had wilfully delayed filing returns then s/he can be subject to imprisonment as well.