14 Dec

Penalty for late filing of the income tax return for AY 2021 22

Penalty for late filing of the income tax return for AY 2021-22

The deadline for filing your ITR for AY 2021-22 (FY 2020-21) has been extended to 31 December 2021 for individual taxpayers. Failure to pay your ITR on time can result in penalties, but there are other consequences and inconveniences of delay. Let's understand this in detail below

Penalty for late filing under 234F

As per the amended rules notified under Section 234F of the Income-tax Act, effective April 1, 2017, if you file your ITR after the deadline, you will have to pay a maximum penalty of Rs. 10,000.

From FY 20-21, the Income-tax department has increased the maximum penalty to Rs 5,000 for late filing of returns. To break this for the fiscal year 2020-21; if you fill out your ITR post by 31 December 2021 (15 February 2022 for audit and 28 February 2022 for transfer price cases), no penalty will be levied. For returns filed after 31 December 2021, the penalty will be capped at Rs 5,000. However, as a relief to small taxpayers, the IT department has stated that if your total income does not exceed Rs 5 lakh, the maximum penalty for delay will be only Rs 1000.

Late Filing Fees Details

E Filing Date

Total Income Below Rs.5 Lacs

Total Income Above Rs.5 lacs




Between 01.01.2022 to 31.03.202



Less time to rectification your return

Suppose you are filling out your ITR and you are making a mistake. As per the changed rules, you have till the end of the relevant assessment year (for ITR from FY 2017-18) to make changes.

Previously, taxpayers had a long window of 2 years to correct and resubmit incorrect ITR. This has now been reduced to one year from the end of the financial year. Therefore, the sooner you file, the more time you will have available to correct any errors in your returns.

Payment of interest

If you have not filed your income tax return on or before the due date, you will have to pay interest at the rate of 1% for each month or part of the month on the amount of tax not paid as per section 234A. It is important to note that if a person has not paid the tax, his ITR cannot be filed. The calculation of penalty will start immediately after the due date which is usually 31st July of the relevant assessment year (for the current year i.e. for the financial year 2020-21, the due date of individual taxpayers is 31st December 2021). So, the longer you wait, the more you have to pay.

No further losses carried forward is allowed

If there is a loss under Capital Gains Head or any loss to your business during the year, make sure you file your return within the due date. Failure to do so will deprive them of carrying on these losses for future years as compared to future income.

Delay in receiving a tax amount refund

If you are entitled to a refund from the government for the extra taxes you have paid, you must pay your refund before the due date to get a refund as soon as possible.



Santosh Patil


Founder & Director

Alliance Tax Experts



#alliancetaxexperts #gst #incometax #itr #efiling #penalty #nearme #professionals #taxconsultant #taxexperts #taxplanning #onlineitrfiling #navimumbai #consultant


Find the Solution That Best Fits Your Business