Filing your [Income Tax Return](https://www.harunraaj.com/services/itr-filing) after 31 July 2026 triggers three separate charges under the Income Tax Act, 1961 — a flat late filing fee, interest on unpaid tax, and interest on advance tax shortfall. Understanding each one tells you exactly what delay costs you.

## The Three Charges at a Glance

| Section | Trigger | Rate | Starts |
|---------|---------|------|--------|
| §234F | Filed after due date | ₹5,000 flat (₹1,000 if income ≤ ₹5L) | Date of filing |
| §234A | Tax unpaid after due date | 1% per month, simple | 1 August 2026 |
| §234B | Advance tax < 90% of assessed tax | 1% per month, simple | 1 April 2026 |

## Section 234F — Late Filing Fee

**Section 234F** (inserted by Finance Act 2017) imposes a mandatory fee for filing after the due date under Section 139(1):

- **₹5,000** if the return is filed between 1 August 2026 and 31 December 2026
- **₹1,000** if your total income does not exceed ₹5,00,000

This is a fee, not interest — it is charged regardless of whether all taxes are paid on time and regardless of the size of your refund. There is no waiver provision in the Act. The CBDT does not have power to condone delay in payment of this fee.

**New Income Tax Act, 2025:** The new Act, which applies from Tax Year 2026-27 (FY 2026-27) onwards, retains equivalent late filing fee provisions. For AY 2026-27 returns (FY 2025-26 income), the Income Tax Act, 1961 governs. The new Act uses the term "Tax Year" instead of "Assessment Year" and "Previous Year."

## Section 234A — Interest on Unpaid Tax

**Section 234A** charges **1% simple interest per month** (or part of a month) on the amount of tax remaining unpaid after the filing due date. It applies only if you have a net tax liability after accounting for TDS, advance tax, and self-assessment tax.

Interest accrues from **1 August 2026** until the date the return is filed (or until the date of assessment, whichever is earlier).

Key point: If you pay all outstanding tax before filing (via self-assessment tax Challan 280), Section 234A interest stops accruing on the date of payment — even if you file the return later.

## Section 234B — Interest on Advance Tax Shortfall

**Section 234B** applies if your total advance tax paid before 31 March 2026 was less than **90% of your assessed tax**. The interest rate is **1% per month** from April 2026 until the date of assessment or payment.

For salaried individuals where TDS under Section 192 covers the full liability, Section 234B typically does not apply. It becomes relevant when you have substantial other income (freelance fees, rental income, capital gains, FD interest) and TDS does not cover 90% of total liability.

## What You Cannot Carry Forward

A return filed after 31 July 2026 is a **belated return under Section 139(4)**. Under **Section 80AC**, you forfeit the right to carry forward the following losses:

- Business and profession losses
- Short-term and long-term capital losses
- Speculation losses

**Exception:** House property losses (up to ₹2,00,000 per year) can still be carried forward even in a belated return.

If you have realised capital losses in FY 2025-26 — particularly from equity mutual funds or stocks — filing on time before 31 July 2026 is critical to preserve the carry-forward.

## Worked Example

Rohit is a salaried software consultant with freelance income. His AY 2026-27 position:

| Item | Amount |
|------|--------|
| Total assessed tax | ₹1,20,000 |
| TDS deducted by employer | ₹90,000 |
| Advance tax paid | ₹0 |
| Tax outstanding as of 31 July | ₹30,000 |
| He files on 15 September 2026 | |

| Charge | Calculation | Amount |
|--------|-------------|--------|
| §234F | Income > ₹5L | ₹5,000 |
| §234A | ₹30,000 × 1% × 2 months (Aug + Sep) | ₹600 |
| §234B | ₹30,000 × 1% × 6 months (Apr–Sep) | ₹1,800 |
| **Total extra cost of delay** | | **₹7,400** |

Had he paid self-assessment tax of ₹30,000 on 28 July and filed late, §234A and §234B would be minimal — only the §234F fee of ₹5,000 would remain.

## Frequently Asked Questions

**Is the Section 234F fee refundable?** No. Once the return is filed after the due date, the fee is charged regardless of the return's subsequent status or whether a refund is due.

**Can I avoid 234A interest by paying self-assessment tax before filing?** Yes. Section 234A interest stops on the date you pay the outstanding tax, even if you file the return later. Pay via Challan 280 at the portal first, then file.

**If my income is below ₹5 lakh and I have no tax liability, do I still pay 234F?** You pay ₹1,000 (the reduced fee) even if total tax after TDS is nil, provided you are required to file. If your income is below the basic exemption limit (₹4,00,000 under the new regime for AY 2026-27, s.115BAC(1A)) and filing is not mandatory, no fee applies.

**What is the last date to file a belated return for AY 2026-27?** **31 December 2026** under Section 139(4). After this date, you cannot file voluntarily — the Assessing Officer initiates proceedings under Section 144 (best judgment assessment).

**Does Section 234B apply to employees whose employer deducts TDS?** Generally no — TDS under Section 192 is treated as advance tax under Section 219. But if your employer's TDS covers less than 90% of your total tax (due to freelance income, capital gains, etc.), Section 234B applies on the shortfall.

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File before 31 July and pay zero. [File your ITR for AY 2026-27 with Harun Raaj & Associates →](/services/itr-filing)

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## See Also

- [How to Get Your Income Tax Refund — Section 237, TDS Credit, and Section 244A Interest](https://www.harunraaj.com/blog/income-tax-refund-section-237)
- [Can I File ITR Without Form 16? — Complete Guide for AY 2026-27](https://www.harunraaj.com/blog/itr-without-form-16)
- [Your RSUs Are Not Just Salary: The Two Separate Disclosures Required in AY 2026-27 ITR](https://www.harunraaj.com/blog/schedule-fa-rsu-foreign-assets-itr-2-ay-2026-27)

Canonical: https://www.harunraaj.com/blog/late-itr-filing-penalty-ay-2026-27