Section 234F — the late filing fee, and what sits alongside it
Section 234F charges a flat fee for filing after the due date: ₹5,000, reduced to ₹1,000 where total income does not exceed ₹5,00,000. It is a fee, not a penalty, so it applies automatically without any proceedings. Interest under section 234A runs separately and alongside it.
At a glance
- Standard fee
- ₹5,000
- Reduced fee
- ₹1,000 where total income is within ₹5,00,000
- Charged
- Automatically, no proceedings needed
- Interest under 234A
- 1% per month or part month from the due date
- Also lost
- Carry-forward of capital and business losses
The fee is the smallest part of filing late
Three things happen when you file after the due date. The section 234F fee is charged. Interest under section 234A accrues at 1% per month, or part of a month, on the unpaid tax from the due date until you file. And carry-forward of losses is lost.
Of the three, only the first is fixed and predictable. The interest grows every month you delay, and a part month counts as a whole one — filing on the 1st of a month costs the same as filing on the 30th, which is a reason to file early in a month rather than late.
A part month counts as a whole month, so the calendar matters more than you think
Interest under section 234A is charged at 1% for every month or part of a month of delay. A return filed on 1 November attracts the same interest as one filed on 30 November — but one filed on 31 October attracts a full month less. If you are already late and the return is nearly ready, finishing it before the month turns is worth real money on any material balance. It is the one deadline effect that rewards a single day of urgency.
Questions we get asked
Is the fee waived if I owe no tax?
The 234F fee still applies for filing late. Section 234A interest is calculated on unpaid tax, so where nothing is payable there is no interest — but the fee stands.
How is the ₹5 lakh threshold measured?
On total income, which is after deductions. Someone with gross income slightly above ₹5 lakh may still fall within the reduced ₹1,000 fee.
Can the fee be appealed?
It is a fee charged automatically rather than a penalty imposed after proceedings, which makes it very difficult to contest. Filing on time is the only reliable answer.
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