— What non-compliance actually costs
Penalty & Late Fee Reference
25 statutory defaults across GST, income tax, TDS, ROC and payroll — each with the section that imposes it, the daily or percentage charge, the maximum cap, and the second-order damage most people forget about.
| Default | Governing section | Charge | Maximum | Also triggers |
|---|---|---|---|---|
| Late filing of GSTR-3B | CGST Act, Sections 47 & 50 | ₹50 per day (₹20 for nil returns) | ₹5,000 per return | Interest at 18% p.a. on the unpaid tax, 24% on excess ITC claimed |
| Late filing of GSTR-1 | CGST Act, Section 47 | ₹50 per day (₹20 nil) | ₹2,000–₹10,000 by turnover slab | Blocks GSTR-3B filing and freezes recipient ITC |
| Late filing of GSTR-9 annual return | CGST Act, Section 47(2) | ₹200 per day (₹100 CGST + ₹100 SGST) | 0.5% of state turnover | Scrutiny risk rises sharply for repeat defaults |
| Operating without mandatory registration | CGST Act, Section 122(1)(xi) | ₹10,000 or the tax evaded, whichever is higher | No cap | Full tax plus interest recoverable for the entire unregistered period |
| Issuing a fake invoice or availing fake ITC | CGST Act, Sections 122 & 132 | 100% of tax involved | No cap | Prosecution and arrest where the amount exceeds ₹5 crore |
| Failure to issue an e-way bill | CGST Act, Section 129 | 200% of tax payable on the goods | No cap | Goods and conveyance can be detained until payment |
| Non-filing of GSTR-10 final return | CGST Act, Section 47 | ₹200 per day | ₹10,000 | Cancellation stays incomplete until filed |
| Belated income tax return | Income Tax Act, Section 234F | ₹5,000 | ₹1,000 where total income is up to ₹5 lakh | Interest at 1% per month under 234A; business and capital losses cannot be carried forward |
| Shortfall in advance tax | Income Tax Act, Sections 234B & 234C | 1% per month on the shortfall | Runs until the tax is paid | 234C applies instalment-wise, 234B from 1 April of the assessment year |
| Failure to get accounts audited | Income Tax Act, Section 271B | 0.5% of turnover or gross receipts | ₹1,50,000 | Waivable under Section 273B on proof of reasonable cause |
| Under-reporting of income | Income Tax Act, Section 270A | 50% of the tax on under-reported income | 200% where the under-reporting is deliberate misreporting | Immunity available under Section 270AA in specified cases |
| Cash receipt of ₹2 lakh or more | Income Tax Act, Section 271DA | 100% of the amount received | No cap | Applies per transaction, per person, per day, per event |
| Failure to link PAN with Aadhaar | Income Tax Act, Section 139AA | ₹1,000 | One-time | PAN becomes inoperative — higher TDS and blocked refunds until linked |
| Failure to deduct TDS | Income Tax Act, Section 201(1A) | 1% per month from due date of deduction | Until deduction is made | 30% of the expense is disallowed under Section 40(a)(ia) |
| Deducted but not deposited | Income Tax Act, Section 201(1A) | 1.5% per month | Until deposit | Prosecution possible under Section 276B — three months to seven years |
| Late filing of quarterly TDS statement | Income Tax Act, Section 234E | ₹200 per day | Total TDS amount of the statement | Additional penalty ₹10,000 to ₹1,00,000 under Section 271H |
| Failure to issue Form 16 / 16A | Income Tax Act, Section 272A(2)(g) | ₹100 per day per certificate | TDS amount involved | Employees cannot reconcile their return without it |
| Late filing of AOC-4 (financial statements) | Companies Act, Section 137 | ₹100 per day | No cap | ₹10,000 penalty on the company plus ₹10,000 on each officer in default |
| Late filing of MGT-7 (annual return) | Companies Act, Section 92 | ₹100 per day | No cap | Additional ₹50,000 penalty on the company |
| LLP Form 11 or Form 8 delay | LLP Act, Sections 34 & 35 | ₹100 per day per form | No cap | Multiplied by size of the LLP under the 2022 fee rules |
| DIR-3 KYC not filed | Rule 12A, Directors Rules | ₹5,000 | Flat | DIN deactivated — the director cannot sign any filing until restored |
| MSME Form 1 not filed | Companies Act, Section 405 | Up to ₹25,000 on the company | ₹3,00,000 on officers in default | Applies to payables outstanding beyond 45 days to Udyam-registered suppliers |
| Late EPF deposit | EPF & MP Act, Sections 7Q & 14B | Interest 12% p.a. plus damages up to 25% p.a. | Damages capped at the contribution amount | Employer's share is disallowed as a deduction if paid after the ITR due date |
| Late ESI contribution | ESI Act, Section 39(5) | Interest 12% p.a. | No cap | Damages between 5% and 25% p.a. based on the length of the delay |
| Professional tax default | State professional tax statutes | Interest 1.25%–2% per month | State-specific | Penalty typically 10% of tax due, plus prosecution in some states |
How to reduce exposure
- File nil returns. A nil GSTR-3B costs ₹20 per day if late and nothing if filed — the most avoidable penalty in the system.
- Deposit TDS on the 5th, not the 7th. Bank clearing delays on the deadline are treated as late deposit.
- Diarise ROC dates the day the AGM is held. AOC-4 runs 30 days from the AGM and MGT-7 runs 60 days — both uncapped.
- Reconcile GSTR-2B before claiming ITC. Excess ITC attracts 24% interest, not 18%.
- Pay advance tax in four instalments rather than one March payment, which triggers 234C even when the annual liability is fully paid.
Stop paying late fees
Every deadline and penalty on this page maps to a service our team files for you.
GST RegistrationThreshold check, documents, ARN trackingGST Return FilingGSTR-1, 3B, 9 and QRMP handled monthlyITR FilingSalary, business, capital gains and NRI returnsTDS & TCS Filing24Q, 26Q, 27Q and Form 16 issuanceROC ComplianceAOC-4, MGT-7, DIR-3 KYCPayroll ManagementEPF, ESI, professional tax and payslipsAccounting & BookkeepingCA-reviewed monthly booksTax CalculatorsFree income tax, GST, EMI and HRA toolsHSN / SAC Finder17,000+ codes with GST rates
Frequently asked questions
What is the maximum late fee for GSTR-3B?
₹50 per day of delay (₹20 per day for nil returns), capped at ₹5,000 per return, plus interest at 18% per annum on the unpaid tax under Section 50.
Which Indian compliance penalty has no upper limit?
ROC filings. AOC-4, MGT-7, LLP Form 8 and LLP Form 11 all attract ₹100 per day with no statutory cap, so a filing forgotten for two years can cost more than ₹70,000 per form.
Can a late filing penalty be waived?
Section 273B of the Income Tax Act allows waiver of several penalties where the taxpayer proves reasonable cause. GST late fees are waived only through a departmental amnesty notification. Interest is almost never waived.
What is the penalty for not deducting TDS?
Interest at 1% per month from the date the deduction was due, and 30% of the related expense is disallowed under Section 40(a)(ia) until the TDS is paid.
Is there a penalty for cash transactions above ₹2 lakh?
Yes. Section 271DA imposes a penalty equal to 100% of the amount received in cash in violation of Section 269ST, applied per transaction, per person, per day, per event.
Cite this page
This dataset is free to reference in articles, research and reports. Attribution to Taxpex Consultancy is all we ask. Data last verified 31 July 2026.
Citation (APA)
Taxpex Consultancy. (2026). India Penalty & Late Fee Reference. Retrieved from https://taxpex.com/resources/penalty-referenceHTML link
<a href="https://taxpex.com/resources/penalty-reference">India Penalty & Late Fee Reference</a> — Taxpex ConsultancyLast Updated
31 July 2026
Content refreshed against the latest CBIC / CBDT / MCA notifications and portal changes.
Reviewed by Chartered Accountant
CA Ravi Sharma
Chartered Accountant · ICAI Member · 12+ years in Indian tax & compliance
Government & Statutory References
Update History
- 31 July 2026Reviewed rates, forms and portal workflow for Penalties and Late Fees. Verified against latest CBIC/CBDT notifications.
- 10 January 2026Refreshed FAQ set, added new penalty examples and jurisdiction notes.
- 05 October 2025Structural rewrite for EEAT — added expert commentary, playbooks and process timeline.