Belated return penalty on FNO income of 3.6 lacs

Taxation
1

I have made profits of around 3.6 lacs from FNO trading during fiscal year 25-26. Cannot file the ITR before August 31st due to time constraint. As far as I know the penalty for late filing is 1k if income is below 5 lacs.

However I have also read that the penalty is waived off if income is below exemption limit. For the last two years I was filing in December but my profits were less than 2.5 lacs. I am just confused if the basic exemption limit is 4 lacs or 2.5 lacs(Filing under new tax scheme).

can any one please answer this.

2

@Quicko

3

It is 4 lakhs for the new tax regime.

4

FnO comes under business income and for that due date is 31august

5

The due date is 31st August. However, since the income is below ₹4 lakh, no penalty will be charged even if the ITR is filed after 31st August.

@Quicko, am I right here?

6

Wrong!. If you file after 31 August 2026: the late-filing fee is ₹1,000, not zero. The Income Tax Department explicitly states that the fee is ₹1,000 where total income does not exceed ₹5 lakh.

You can refer to the below link (point 7)
https://www.incometax.gov.in/iec/foportal/help/all-topics/e-filing-services/%20income%20tax%20returns-faq

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7

There is an exception to this. If ur income is below exemption limit, no penalty is levied. I know for sure since last 2 years my profit was between 2 and 2.5 lacs and I filed in December . Since profit is 3.6 lacs here, my doubt was if the exemption is 2.5 lacs or 4 lacs.

8

Strange. The official Income Tax website, as well as all major tax-related websites (e.g., ClearTax), state that the penalty is ₹1,000 if the total income is less than ₹5 lakh.