5 ITR Penalties for AY 2026-27: Are You Safe?

Filing your income tax return late or incorrectly for AY 2026-27 can cost you serious money. Here are five penalties every salaried person and small business owner must know before July 31, 2026.

Here's what happened: The ITR filing deadline for AY 2026-27 is July 31, 2026 — missing it triggers a late fee of up to ₹10,000 under Section 234F.. Taxpayers who underreport income face a penalty of 50% of the tax due; deliberate misreporting attracts a steeper 200% penalty under Section 270A.. Interest under Sections 234A, 234B, and 234C adds 1% per month on unpaid tax — these charges run alongside any flat late-filing penalties..

What you should do: File your ITR before July 31, 2026 — if your total income is below ₹5 lakh, the late fee is capped at ₹1,000, but don't gamble on last-minute portal crashes.. Cross-check Form 26AS, AIS, and TIS on the Income Tax portal now to catch any income mismatch before you file — mismatches trigger notices and the 50%-200% penalty range.. If you missed declaring any income (freelance, rent, FD interest), file a revised return before December 31, 2026 — revising is free and beats a penalty notice by miles..

If you owe taxes and file late, Section 234A charges 1% interest per month — on top of the ₹10,000 flat fee. Pay any tax due before July 31 even if you file the return a little late to stop that interest clock.

For readers weighing their credit and loan options, our personal loan guide and CIBIL score resources put this update in context.