Fee for Default in Furnishing Return of Income

Section 427 — - FEE FOR DEFAULT IN FURNISHING RETURN OF INCOME

Section 427 of the Income-tax Act, 2025 corresponds to s. 234F (FA 2017) of the Income-tax Act, 1961.

STATUTORY ARCHITECTURE

Fee of INR 5,000 for late filing (after 31-Jul); INR 1,000 if total income < INR 5L. Levied automatically on processing; payable along with self-assessment tax.

PRACTITIONER PLANNING NOTES

• If return filed after 31-Dec of AY: belated return may not be permitted under updated regime; cannot claim certain losses carry-forward.
• Updated return u/s 139(8A) [s. 264 of 2025]: separate additional tax 25%/50%/60%/70% based on year of filing.

CROSS-REFERENCES

• s. 423 / 424 / 425 / 426 -- interest framework.
• s. 412 (default & demand).
• s. 446-448 (penalty Chapter).