ITR Filing: Late Returns Cost Up to ₹5,000 in Fees, Interest

The late filing fee is not automatic for everyone. If your total income is below the basic exemption limit, no fee applies. Interest is charged on the outstanding tax from the due date until payment. Filing on time eliminates both the fee and the interest. The forms are available now on the e-filing portal. Log in with your user ID and password to access them.

Income Types That Push You Beyond ITR-1

The choice of ITR form matters. ITR-1 is for individuals with income from salary, one house property, and other sources like interest. It excludes several income types. Business or professional income disqualifies you from using ITR-1. Long-term capital gains above ₹1.25 lakh under section 112A also push you into a different form. Income from more than one house property, lottery winnings, racehorse maintenance, and income taxable at special rates under sections 115BBDA or 115BBE all require ITR-2 or ITR-3. Using the wrong form can lead to a defective return or a scrutiny notice.

If you missed filing returns for the previous four years, you can file ITR-U for those years. The current year return (AY 2026-27) must be filed using the regular ITR forms. The Excel utilities are live now. The deadline is July 31. Late filing costs up to ₹5,000 plus 1% monthly interest on unpaid tax. Choose the right form to avoid complications.