CA Raises Alarm Over Rs. 5K Late Fee in ITR Filing Despite Deadline Extension

A prominent chartered accountant has sparked a debate on social media after publicly questioning a Rs. 5,000 late fee imposed under the Income Tax Act, despite the Central Board of Direct Taxes (CBDT) officially extending the filing deadline.

In a widely circulated post on X (formerly Twitter), CA Sumit Sharma tagged the official handle of the Income Tax Department (@IncomeTaxIndia), demanding clarity on the computation and due dates of Income Tax Returns (ITR).

What the hell is this?? Why this late fees for 5000?? What is due date of ITR??” Sharma wrote, attaching a screenshot showing no interest levied under Sections 234B and 234C, but a flat ₹5,000 fee under Section 234F.

Section 234F of the Income Tax Act provides for a penalty if the return of income is not furnished within the prescribed due date. Ordinarily, for most individual taxpayers whose accounts are not required to be audited, the due date for filing ITR for the assessment year 2025–26 was July 31, 2025. However, the CBDT recently extended this due date to September 15, 2025, in view of technical issues and representations from taxpayers and professionals.

Despite this extension, Sharma’s post suggests that the income tax portal has continued to levy the maximum late fee of ₹5,000, raising concerns about whether the system has been updated to reflect the new deadline.

Several tax professionals have echoed similar confusion, urging the authorities to issue clear guidance and ensure the e-filing platform’s calculations are aligned with the extended timelines.

The Income Tax Department has not yet issued a formal response to the query.

Tax experts recommend that taxpayers verify their filing dates carefully and retain documentation of any extensions notified by CBDT. If returns are filed before the extended due date of September 15, 2025, no late fees should ordinarily be levied under Section 234F.

As the deadline extension was meant precisely to avoid such penalties, instances of grievances are likely to surge in the coming weeks unless the issue is resolved and the portal is updated accordingly.

Read More: ED Conducts First-Ever Search in Andaman & Nicobar Islands, Unearths Rs. 500 Cr Loan Scam Linked to Ex-MP

Mariya Paliwala
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