Explanation
Section 234F of IT Act 1961 (carried forward in IT Act 2025) levies a late filing fee for delayed ITR filing: ₹5,000 if the return is filed after the due date (31 July for non-audit) but before 31 December of the AY. The fee is reduced to ₹1,000 if total income does not exceed ₹5,00,000. If the return is not filed at all, Section 276CC penalties may apply (imprisonment for 3 months to 7 years for tax evasion). In addition to 234F, interest under 234A (1% per month on unpaid tax) also applies for late filing. Note: ITR filing is NOT mandatory if income is below the basic exemption limit AND there is no other compulsory filing trigger (7 lakhs+ bank deposits, foreign travel, foreign asset, etc.). Verify on the income-tax portal before filing.