SahilAdvisoryYou grow we handle it
Compliance

Section 234F Late Filing Fee AY 2026-27: ₹5,000 or ₹1,000, When It Applies and 234A Interest

Section 234F charges a late fee of ₹5,000 if you file your income tax return after the due date, reduced to ₹1,000 if your total income does not exceed ₹5,00,000. It applies to every belated return filed up to 31 December 2026 for AY 2026-27, even if no tax is due, but not if your gross total income is below the basic exemption limit and you were not otherwise required to file. Interest under section 234A at 1% a month on unpaid tax is charged in addition.

Reviewed by CMA Sahil, Cost and Management Accountant Updated 13 Sept 2026 for FY 2025-26

Key facts, FY 2025-26

Fee if total income above ₹5 lakh
₹5,000
Fee if total income up to ₹5 lakh
₹1,000
Fee if income below the exemption limit
Nil, unless filing was compulsory for another reason
Due date AY 2026-27 (non-audit)
31 July 2026; belated return allowed until 31 December 2026
Interest under 234A
1% per month or part of a month on unpaid tax from 1 August 2026
Paid how
Before filing, as self-assessment tax under the fee head in Challan 280

How it works

Section 234F of the Income-tax Act 1961 is a fixed fee, not a discretionary penalty. If you are required to file a return under section 139(1) and you file after the due date, the fee is charged automatically when you file and again confirmed in the 143(1) intimation. There is no notice, no hearing and no waiver application. The return utility will not let you submit without it.

The amount depends on total income. If total income after deductions exceeds ₹5,00,000, the fee is ₹5,000. If it is ₹5,00,000 or below, the fee is ₹1,000. For AY 2026-27 the due date for salaried and non-audit taxpayers is 31 July 2026, and a belated return under section 139(4) can be filed until 31 December 2026. The same fee applies whether you file on 1 August or 31 December; it does not grow with delay.

The fee applies only if you were required to file. A person whose gross total income, before Chapter VI-A deductions and before capital gains exemptions, is below the basic exemption limit (₹4 lakh new regime, ₹2.5 lakh old regime, higher for seniors) files voluntarily and pays no fee. But the seventh proviso to section 139(1) makes filing compulsory in other cases, such as foreign travel spend above ₹2 lakh, electricity bills above ₹1 lakh, or bank deposits above ₹1 crore, and then 234F applies even at nil income.

Interest is separate. Section 234A charges 1% per month or part of a month on the tax still unpaid after the due date, from 1 August 2026 until the date you file. If all your tax was already covered by TDS or advance tax, 234A is nil but 234F is still payable. Section 234B and 234C interest for short advance tax runs on its own timeline and is unaffected by when you file.

Late filing consequences for AY 2026-27.
SituationSection 234F feeSection 234A interest
Filed by 31 July 2026NilNil
Belated, total income above ₹5 lakh₹5,0001% per month on unpaid tax
Belated, total income up to ₹5 lakh₹1,0001% per month on unpaid tax
Belated, gross total income below exemption limit, no compulsory filing triggerNilNil
Belated, all tax already paid through TDS, refund due₹5,000 or ₹1,000Nil
Revised return filed after an on-time originalNilNil
Updated return (ITR-U) after 31 December₹5,000 or ₹1,000 plus 60% to 70% additional tax1% per month

Worked example: Salaried taxpayer files on 20 October 2026 with ₹18,000 tax still unpaid

Total income
₹9,40,000
Late fee under 234F (income above ₹5 lakh)
₹5,000
Tax unpaid after TDS
₹18,000
Months late (August, September, October, part months count in full)
3
Interest under 234A at 1% per month
₹540
Total extra cost of filing late
₹5,540

The cost that is bigger than the fee

A belated return cannot carry forward most losses. Capital losses, business losses and F&O losses from FY 2025-26 are lost for future set-off if the return is filed after 31 July 2026. House property loss is the exception. For a trader with a ₹5 lakh F&O loss, the real cost of filing late is the future tax on ₹5 lakh, not the ₹5,000 fee. You also cannot choose the old regime in a belated return; the new regime applies by default.

Income Tax CalculatorWork out your total income first. Whether it lands above or below ₹5 lakh decides whether the fee is ₹5,000 or ₹1,000.

What to do next

If the due date has passed, file now rather than waiting until December; the fee is the same but the 234A interest keeps running. Pay the fee and any tax through Challan 280 as self-assessment tax before submitting, entering the fee in the fee field so that the challan matches the return. E-verify within 30 days, or the return is treated as not filed and the fee is wasted. If you missed 31 December as well, the only route is an updated return under section 139(8A), with additional tax on top. A belated or revised return through an expert-assisted service takes a day and includes the interest computation. If you have a genuine reason for the delay and a refund at stake, a condonation application under section 119(2)(b) can allow a return beyond the belated window, but it is discretionary and slow, so do not plan around it.

Section 234F: questions

What is the late fee under section 234F for AY 2026-27?

₹5,000 if total income exceeds ₹5,00,000, and ₹1,000 if total income is ₹5,00,000 or less. It applies to returns filed after 31 July 2026 (non-audit cases) up to 31 December 2026.

Is 234F applicable if my income is below the taxable limit?

No, if your gross total income is below the basic exemption limit and you were not otherwise required to file. If filing was compulsory because of high-value transactions or foreign assets, the fee applies even with nil tax.

Do I have to pay 234F if I have a refund due?

Yes. The fee depends on when you file, not on whether tax is payable. The department adjusts the fee against the refund in the 143(1) intimation.

Does the 234F fee increase the later I file?

No. It is a flat ₹5,000 or ₹1,000 for any belated return filed up to 31 December. What increases is 234A interest at 1% a month on unpaid tax, and after 31 December an updated return carries additional tax of 60% or 70% of the tax due.

Is 234F charged on a revised return?

No, if the original return was filed by the due date. A revised return corrects an on-time return and carries no fee. If the original itself was belated, the fee was already paid on it.

Can the 234F fee be waived?

No. It is charged under the Act with no discretion given to the assessing officer. CBDT sometimes extends the due date itself, which removes the fee for everyone who files within the extended date.

How is section 234A interest calculated?

1% simple interest per month or part of a month on the tax unpaid after the due date, from 1 August 2026 to the date of filing. If TDS and advance tax already cover your liability, 234A is nil.

Which losses can be carried forward in a belated return?

Only loss from house property and unabsorbed depreciation. Capital losses, business losses, speculation losses and F&O losses cannot be carried forward if the return is filed after the due date under section 139(1).

Related sections and forms

Read next

General information for FY 2025-26, not professional advice. Limits and dates change with each Budget; the updated date above is when this page was last checked. Disclaimer

Want Section 234F handled for you?

Belated or Revised Return: Belated return by 31 December with 234F fee computed, or revised return to fix errors.

  • Callback within 2 working hours
  • Fixed price quoted before any work
  • Every return reviewed by a CMA or CA

All sections