The Real Cost of Filing Late in India (AY 2026-27)

Missing a tax deadline is rarely a flat fine — it compounds. This report computes exactly what late filing costs across income tax, GST and TDS, using the statutory formulas (§234F, §234A, §47, §50, §201(1A) and §234E). Every figure below is calculated with the same engine that powers our free calculators, so you can reproduce it yourself. Free to cite with attribution.

1. GST late-filing fee & interest, per return

GSTR-3B/GSTR-1 late fees run at ₹50/day (₹25 CGST + ₹25 SGST) for a return with tax due, capped at ₹5,000, or ₹20/day capped at ₹500 for a nil return. On top of the fee, unpaid tax attracts 18% p.a. interest under Section 50. The interest column below assumes a ₹50,000 net cash liability.

Takeaway: the late fee caps quickly (₹500 nil / ₹5,000 regular), so beyond ~25–100 days the interest — not the fee — is what keeps growing. File the return even if you can't pay in full to stop the fee clock.

2. Income-tax return: §234F fee + §234A interest

A belated ITR costs a flat §234F fee — ₹1,000 if total income is up to ₹5 lakh, otherwise ₹5,000 (nil below the basic exemption) — plus §234A interest at 1% per month (or part) on any unpaid tax. Here is the combined cost for four common situations:

Takeaway: for incomes above ₹5 lakh the ₹5,000 fee dominates at first, but §234A interest overtakes it the longer the tax stays unpaid — and belated returns also lose the right to carry forward most losses.

3. TDS: late deposit (§201(1A)) + late return (§234E)

For deductors, TDS deposited late attracts 1.5% per month under Section 201(1A), and a late TDS return costs ₹200/day under Section 234E — capped at the TDS amount itself. The combined bite:

Takeaway: §234E at ₹200/day reaches the cap fast, so a small TDS amount filed months late can effectively double. Deposit and file TDS on time — the interest and fee are non-negotiable and non-waivable in most cases.

How to avoid every rupee above

None of these penalties are discretionary — they are formula-driven and levied automatically, which is exactly why they are avoidable with a calendar. Three habits eliminate almost all late-filing cost: (1) set reminders for the four dates that matter to you (GST monthly, TDS quarterly, advance tax quarterly, ITR by 31 July); (2) file the return on time even if you cannot pay the full tax immediately, because the late fee is triggered by the missing return, not the missing payment; and (3) reconcile before you file — most GST interest comes from ITC that was claimed but later reversed, and most ITR notices come from income in your AIS that wasn't reported.

Methodology

Every figure is computed programmatically from the statutory formulas as codified in our open calculator library — §234F and §234A for income tax, Section 47 (late fee) and Section 50 (18% interest) for GST, and Sections 201(1A) and 234E for TDS — for AY 2026-27. The tables are generated at build time from the same functions that power the site's free calculators, so the published numbers and the interactive tools are always identical. Figures are indicative of the statutory charge only; a specific case may attract additional penalty (e.g. §271H) or relief — verify with a qualified CA.

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Cite this report: "The Real Cost of Filing Late in India (AY 2026-27)", India Law Simplified, 2026-07-11. https://onefiling.in/reports/cost-of-filing-late-india-2026.html

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General information for AY 2026-27, not professional advice. Verify all figures against the official source before acting.