Chartered Accountant · ICAI M.No. 153926 · FRN 136869W
₹100/day, no cap
It accrues per form per day, so a few months’ delay can run into large amounts.
Disqualification / strike-off
Three years of non-filing can disqualify directors and lead to strike-off.
How fast it adds up — and beyond money
Because the ₹100 per day runs per form with no ceiling, the figure grows quickly: a single form six months late is about ₹18,000, and with AOC-4 and MGT-7 both delayed that doubles — before counting any other pending forms. Unlike many tax penalties, this one has no reasonable-cause waiver built in; it’s an additional fee you simply pay over and above the normal filing fee when you eventually file. The non-monetary consequences are heavier: directors of a company in default of financial statements or annual returns for three continuous years are disqualified for five years, their DIN deactivated, which can stall their role in other companies too; and persistent default invites strike-off by the Registrar. The practical takeaway is that a late filing is never cheaper for waiting — the meter only runs faster — so filing even a delayed return promptly stops the bleeding and protects the directors’ standing. Where several forms are pending, clearing the oldest first limits the per-day accrual.