Quick answer: Section 234F of the old Income Tax Act, 1961 — the late fee for filing your return after the due date — is now Section 428 in the new Income Tax Act, 2025. The fee amounts are unchanged: Rs. 5,000 normally, and Rs. 1,000 if your total income is up to Rs. 5 lakh.
What Section 234F Was
Section 234F charged a fee if you filed your income tax return after the due date. It was simple and strict:
- Rs. 5,000 — if you filed late and your total income was above Rs. 5 lakh.
- Rs. 1,000 — if your total income was Rs. 5 lakh or less.
- No fee waiver — the fee applied even if you had no tax to pay.
This fee was separate from interest under Sections 234A, 234B, and 234C. Many taxpayers learned about 234F the hard way — by seeing it added to their tax payable on the portal.
What Changed in the New Act
The late filing fee provision is now Section 428 of the Income Tax Act, 2025. The amounts are exactly the same:
| Total income | Late fee |
|---|---|
| Above Rs. 5 lakh | Rs. 5,000 |
| Up to Rs. 5 lakh | Rs. 1,000 |
The fee still applies when you file a belated return — that is, any return filed after the due date under Section 139(1) of the old Act (now Section 263 of the new Act).
What Stays the Same
- The fee amounts (Rs. 5,000 / Rs. 1,000) are identical.
- The Rs. 5 lakh income threshold for the lower fee is unchanged.
- The fee applies even if no tax is payable — it is a fee, not a tax.
- It is separate from interest charges, which also continue under the new Act.
- Filing late also means you lose the right to carry forward certain losses.
How the Fee Is Calculated: An Example
Let us make this concrete with two examples:
Example 1 — Priya, salaried, income Rs. 8 lakh: She missed the 31st July deadline and filed on 15th October. Her income is above Rs. 5 lakh, so the fee is Rs. 5,000. On top of that, interest under the interest provisions applies on any unpaid tax from August onwards.
Example 2 — Rahul, freelancer, income Rs. 4.5 lakh: He filed late in November. His income is below Rs. 5 lakh, so the fee is only Rs. 1,000. Still, filing on time would have cost him nothing extra.
The lesson: the fee is automatic. The portal adds it to your tax computation the moment you file late. There is no appeal, no waiver request, no mercy.
Other Costs of Filing Late
The Rs. 5,000 fee is not the only price of delay. Filing late also means:
- Loss of carry-forward: Business losses, capital losses, and losses from house property (except unabsorbed depreciation) cannot be carried forward if you file late. This can cost far more than the fee itself.
- Interest charges: Interest on unpaid tax keeps running from the due date until you pay. At 1% per month, a few months of delay adds up.
- No revised return benefits: While belated returns can technically be revised, you start from a weaker position with fewer options.
- Delayed refunds: Late filers go to the back of the processing queue. Your refund, if any, arrives months later.
Practical Impact for You
1. Nothing changes in your wallet: If you file late, you pay the same fee as before. The only difference is the section number on your tax computation.
2. File on time to save Rs. 5,000: This is the easiest money you will ever save. Mark 31st July on your calendar every year.
3. Low-income filers: If your income is up to Rs. 5 lakh, the fee is only Rs. 1,000. But it is still better to file on time and pay nothing extra.
4. ITR-U also attracts the fee: If you file an updated return late, the fee provisions apply there too, along with additional tax.
Frequently Asked Questions
Is the late fee still Rs. 5,000 under the new Act?
Yes. Section 428 of the Income Tax Act, 2025 keeps the same fee — Rs. 5,000 for income above Rs. 5 lakh, and Rs. 1,000 for income up to Rs. 5 lakh.
Do I pay the fee if I have zero tax liability?
Yes. The late fee applies regardless of whether you owe any tax. Even a nil return filed late attracts the fee.
Can the late fee be waived?
Generally no. The fee is automatic when you file after the due date. There is no general waiver provision, so the best strategy is to file on time.
Does the fee apply to revised returns?
A revised return filed within the allowed time does not attract a fresh late fee. But if your original return was late, the fee on the original filing still stands.
Official Sources
- Income Tax Department — official source for verification
- India Code — official source for verification
Reviewed by Asuthod Rathod, CA. Last updated: 10 October 2026. Based on the Income Tax Act, 2025 as notified. Fee provisions are subject to CBDT notifications — check incometax.gov.in for updates.
Rohan has been writing about Indian income tax for over 5 years. He breaks down complex tax rules into simple language that anyone can understand. His guides focus on practical filing tips, deduction strategies, and keeping up with the new Income Tax Act 2025.