ITR Deadline Alert: File Your ITRs Before September 15 to Avoid These Penalties
The extended due date for Income Tax Return (ITR) filing (AY 2025-26) is September 15, 2025, for the non-audit cases. Which means that the due date for filing the return is coming closer, with only 10 days left for the taxpayers. As of now, the income tax department has not further extended the due date of ITR filing. Therefore, the taxpayers are advised to file their ITR as soon as possible. Failing to meet these deadlines will bring penalties and interest.
Although you can file your return after this deadline, it will be considered a belated return, for which the taxpayers are liable to pay a penalty. Let us know the consequences taxpayers face due to late filing.
Interest Under Section 234A
If you do not file the return on time, you will be charged interest under section 234A. The interest is 1% for a month, and it is levied on the unpaid tax. The longer you delay ITR filing, the more interest you will be liable to pay.
Late Filing Fee
Section 234F levies a penalty if the taxpayer does not file the ITR on time. For the FY 2024-25, the late filing fee is as follows:
- Rs 5,000 for taxable income above Rs 5 lakh, if the ITR is filed after the due date or before December 31. For January 1 to March 31, the penalty can go up to Rs 10,000.
- Rs 1,000 for the taxpayers with taxable income up to Rs 5 lakh.
No Timely Refund
A belated return not only attracts a penalty and interest but also affects your refunds. In case you are eligible for any refund, it might get delayed due to late filing. In some cases, where the filing is fully waived, the refund can also be rejected. Therefore, to make sure this does not happen to you, file your return on time.
Late Filing Impacts Carry Forward Benefits
The losses incurred in a financial year can be carried forward to adjust against future profits. However, it is only allowed if the ITR for that financial year in which losses are incurred is filed within the due date. Which means that the taxpayers cannot carry forward business or capital losses to subsequent years if they file a belated return.
Legal Consequences
The Income Tax Department can send notices and even take legal action if a taxpayer avoids paying taxes. In serious cases, this can lead to imprisonment of up to two years along with heavy penalties. While this usually happens with companies that default, salaried individuals and small taxpayers should also take tax filing seriously and not ignore it.
No Option to Select Old Tax Regime
Taxpayers filing a belated return cannot choose the old tax regime. The belated return can only be filed under the new tax regime. This means the tax benefits under the old tax regime will not be provided for such a return.
Who Needs to File ITR?
If your income is above the basic exemption limit, you are required to file the ITR. However, the ITR is also compulsory even if your income is below the exemption limit in the following cases:
- If your spending on foreign travel is more than Rs 2 lakh.
- If you have paid Rs 1 lakh or more in electricity bills in a year
- If you have deposited Rs 1 crore or more in one or more current accounts.
