What are the penalties for failure to furnish return of income?

Section 271F of the Income Tax Act imposes a penalty for failure to furnish return of income. If the return is not filed within the due date prescribed under section 139(1), a penalty of Rs. 5,000 shall be levied. However, if the total income of the person does not exceed Rs. 5 lakh, the penalty shall be restricted to Rs. 1,000. Note: Finance Act 2025 has amended section 271F, enhancing the penalty amounts to Rs. 10,000 and Rs. 2,000 respectively, effective from April 1, 2025.