Filing your Income Tax Return (ITR) is a duty every taxpayer must fulfill. For most individuals, the final date to file for this year is September 15, 2025. The government had already extended the cut-off from July 31, giving extra time. Now, the window is closing today.
If you still haven’t filed your ITR, you can do so even after the deadline. However, there are penalties and consequences for late filing.
What Happens If You Miss the ITR Deadline?
1. Late Fee on Belated ITR
For the assessment year 2025–26 (FY 2024–25), the penalty depends on your income:
If income is up to ₹5 lakh, the late fee is ₹1,000 if you file before December 31.
If income is above ₹5 lakh, the penalty increases to ₹5,000.
This fine is charged at the time of filing your belated return.
2. Interest on Pending Taxes
If you still owe tax, you will need to pay 1% interest per month. This applies under:
Section 234A: late filing
Section 234B: shortfall in advance tax
Section 234C: deferment of advance tax
3. Loss of Carry-Forward Benefits
Filing late means you cannot carry forward certain losses, like business losses or capital losses. This removes the option to adjust them against future income.
The only exception is house property losses, which can still be carried forward even if you file late.
4. Delay in Refund and Loss of Interest
If you are due a refund, late filing slows the process. You also lose a portion of the interest you could have earned.
“Loss of refund interest refers to the interest you could have received had you filed your ITR on time, minus the interest you actually receive, given you filed later,” said Shefali Mundra, tax expert at ClearTax, to LiveMint.
For example, if your refund is ₹50,000 and you file on time, you earn ₹2,250 interest from April to December. But if you file in October, you earn only ₹500 for October–December. That’s a loss of ₹1,750.
5. Higher Scrutiny from the Tax Department
Late filing also increases the chance of your return being picked up for scrutiny. Notices and tighter checks from the Income Tax Department are more likely.
Who Needs to File ITR by September 15?
Most individual taxpayers, including salaried employees, pensioners, and NRIs whose accounts don’t need an audit, must file by September 15, 2025.
Businesses and professionals needing audits must submit audit reports by September 30, 2025, and ITR by October 31, 2025. Taxpayers with transfer pricing reports must file by November 30, 2025.
Record ITRs Already Filed
According to the official income tax portal, as of 10:35 am on September 15, a total of 6.7 crore ITRs had been filed. Of these, 6.03 crore have been verified, and more than 4 crore returns have already been processed.
