Quick Answer: Late ITR filing fee under Section 234F: ₹5,000 if filed after 31 July but before 31 December; ₹10,000 if filed after 31 December (reduced to ₹1,000 if total income is below ₹5 lakh). Late GST return fee: ₹50/day (nil return: ₹20/day). TDS non-deduction penalty: equal to the TDS amount (Section 271C). Late TCS collection: 1% per month interest.
Tax Penalty Structure — Know What You Owe
Tax penalties in India are structured to increase with delay. Understanding the exact penalty helps you prioritise which compliance to address first. In some cases, voluntary compliance before notice has lower penalties than post-notice action.
Penalty Quick Reference
| Default | Section | Penalty / Interest |
|---|---|---|
| Late ITR filing | 234F | ₹5,000 (₹1,000 if income ≤ ₹5L) |
| Interest on unpaid tax (late ITR) | 234A | 1% per month |
| Late advance tax | 234B | 1% per month |
| Underestimation of advance tax | 234C | 1% per month per instalment |
| Late TDS deposit | 201(1A) | 1.5% per month |
| Late GST return (GSTR-3B) | 47 | ₹50/day (₹20/day nil) |
Frequently Asked Questions
Section 273B provides immunity from penalty if the taxpayer proves there was reasonable cause for the failure. Courts have held causes like natural disaster, illness, reliance on incorrect professional advice, or system failures as reasonable. Late fee under 234F is mandatory and cannot be waived. Interest under 234A/B/C is levied automatically.
GST interest for late payment of tax is 18% per annum (24% for undue ITC claims). It is calculated from the next day after the due date till the date of payment. For delayed filing of GSTR-3B, both interest on unpaid tax AND late fee apply separately.