Delayed Income Tax payments in India triggers the following consequences:
Interest: A mandatory 1% interest per month (or part of a month) is charged on the unpaid tax under Sections 234A, 234B, and 234C.
Late fees: A penalty of up to 5000/- is levied under Section 234F for filing after the due date, reduced to 1000/- for income tax under 5 lakh.
Other Penalties: Inability to carry forward losses and, for serious evasion, potential prosecution.
