Income Tax Act, 1961 | Return filing compliance
Section 271F of the Income-tax Act, 1961: Penalty for Failure to Furnish Return of Income
Section 271F formerly authorised a Rs. 5,000 penalty where a person required to file an income-tax return failed to do so before the end of the relevant assessment year. The statutory proviso excludes returns for assessment years beginning on or after 1 April 2018. For later years, distinguish the late-filing fee under section 234F from this historical penalty.
Article updated: 28 October 2026
What did Section 271F provide?
Section 271F was a penalty provision in Chapter XXI of the Income-tax Act, 1961. It addressed failure to furnish a return required under section 139(1) or its applicable provisos before the end of the relevant assessment year. Under the historical rule, the Assessing Officer could direct a penalty of Rs. 5,000; it was not a percentage of income or unpaid tax.
Section 139(1) prescribes when a person must furnish a return of income. The statutory filing obligation depends on the taxpayer category, income and applicable special conditions; it should not be confused with merely having a PAN or receiving a notice.
Statutory wording and the 2018 exception
If a person who is required to furnish a return of his income, as required under sub-section (1) of section 139 or by the provisos to that sub-section, fails to furnish such return before the end of the relevant assessment year, the Assessing Officer may direct that such person shall pay, by way of penalty, a sum of five thousand rupees.
Proviso: Nothing contained in this section shall apply to and in relation to the return of income required to be furnished for any assessment year commencing on or after the 1st day of April, 2018.
This historical wording is retained because it explains legacy disputes and the transition away from the penalty. The proviso was inserted by the Finance Act, 2017 with effect from 1 April 2018.
Which assessment years are covered?
| Assessment year | Section 271F position | Practical consequence |
|---|---|---|
| AY 2017-18 and earlier | Historical provision may be relevant, subject to the applicable law, facts, limitation and procedural safeguards. | Legacy penalty questions require individual examination. |
| AY 2018-19 onwards | Expressly excluded by the proviso to section 271F. | Consider section 234F and other applicable return-filing rules instead. |
| Tax years under the Income-tax Act, 2025 | Old section 271F is not a current charging provision. | Apply the 2025 Act and the relevant rules for that tax year. |
Assessment year refers to the year in which income of the preceding previous year is assessed under the 1961 Act. The Income-tax Act, 2025 uses the concept of a tax year for its new framework effective from 1 April 2026.
Section 234F: late filing fee for more recent returns
For returns governed by the 1961 Act in assessment years to which section 234F applies, a person who is required to file under section 139 and misses the prescribed due date may incur a fee rather than the historical section 271F penalty. The amount depends on the applicable version of the law and assessment year.
| Common position under section 234F for recent AYs | Fee |
|---|---|
| Total income does not exceed Rs. 5,00,000 | Up to Rs. 1,000 |
| Total income exceeds Rs. 5,00,000 | Up to Rs. 5,000 |
These are the statutory amounts generally relevant under the post-amendment version of section 234F, not a statement that every late return necessarily attracts a fee. Filing obligation, the assessment year, applicable due date, exclusions and the governing law must be checked. Earlier assessment years had different fee provisions.
Section 234A interest for delay in filing, interest under other provisions, and loss of certain benefits may arise independently when their statutory conditions are satisfied. A late filing fee does not by itself replace tax or interest payable.
Practical examples
Example 1: Historical penalty
A taxpayer required to file a return for AY 2017-18 failed to furnish it by the end of that assessment year. The former section 271F could be examined in a legally maintainable legacy proceeding, subject to the relevant facts and safeguards. The historical amount was Rs. 5,000.
Example 2: Later assessment year
A taxpayer files a return for AY 2025-26 after the applicable due date. Section 271F cannot be invoked for that return because of its express proviso. The proper analysis is under section 234F and other relevant provisions.
Example 3: No filing obligation
Where a person is not legally required to furnish a return under the applicable provisions, a late-filing charge should not be presumed merely because no return was submitted. Specific filing triggers and notices still require separate examination.
Legislative history and relief
The Finance Act, 2002 substituted section 271F with effect from 1 June 2002. The Finance Act, 2017 inserted the proviso excluding returns for assessment years commencing on or after 1 April 2018, alongside the shift to a late-filing fee framework under section 234F.
For historical penalty proceedings, section 273B was a relevant safeguard: no penalty under a listed provision, including section 271F, was imposable where the person proved reasonable cause for the failure. Whether that defence is available in a particular matter depends on the law and proceedings applicable to the period concerned.
Section 271F should also not be confused with penalties for inaccurate returns, failure to comply with notices or failure to furnish prescribed information; each has different conditions.
Income-tax Act, 2025: transitional relevance
The Income-tax Act, 2025 came into force on 1 April 2026. For tax years governed by the new Act, use the new legislation and its prescribed return-filing consequences rather than applying old section numbers automatically. Matters relating to earlier periods may remain governed by the 1961 Act and relevant transition or saving provisions. This article preserves section 271F for historical research and explains the distinction from later fees.
Frequently asked questions
Is the Rs. 5,000 penalty under section 271F applicable today?
No, not for returns for AY 2018-19 onwards. The statutory proviso expressly excludes those assessment years.
What is the difference between sections 271F and 234F?
Section 271F was a historical penalty for failure to furnish a required return before the end of the assessment year. Section 234F provides a late-filing fee for returns governed by that provision, with different triggering conditions.
Does filing after the due date always attract Rs. 5,000?
No. The applicable filing requirement, income threshold, assessment year, due date and governing statutory provisions must be checked. For many recent years under the 1961 Act, section 234F caps the fee at Rs. 1,000 where total income does not exceed Rs. 5 lakh.
Can reasonable cause matter in an old section 271F case?
Yes. Section 273B historically provided a reasonable-cause defence to the penalty, subject to proof and the applicable legal framework.
Official law and guidance
- Income Tax Department: Section 271F
- Income Tax Department: Section 234F
- Income Tax Department: Section 139
- Income-tax Act, 1961 as amended by Finance Act, 2025 (official consolidated text)
- Income Tax Department: e-Filing portal
- Income Tax Department: official legislative resources
Legal information only. For older assessments and pending proceedings, check the exact statutory version and relevant notices.