Filing your Income Tax Return (ITR) on time is an essential task for every taxpayer in India while this year, the due date for most people is September 15. The government had already extended the deadline from July 31, giving taxpayers more time, but the clock is now ticking and if you haven’t filed yet, you might be wondering: what happens if you miss the deadline?
Let’s see. The quick answer is yes. But it has its own implications such as penalties. Let’s analyze what and how to get it done.
Late Filing Penalties and Fees
Missing the September 15 deadline doesn’t mean you can’t file your ITR. You can still do it, but you’ll have to pay a late fee. For the assessment year 2025–26 (FY 2024–25), if your income is up to Rs 5 lakh, you’ll need to pay a penalty of Rs 1,000 if you file after the due date but before December 31, 2025 and but if your income is more than Rs 5 lakh, the late fee increases to Rs 5,000 and it’s better to file on time to avoid these extra charges!
Read More: Income Tax Refund 2025: How Soon Will You Get Your Money After Filing ITR?
Interest on Unpaid Tax
Along with the late fee, if you still owe taxes, you’ll have to pay interest. The interest is 1% per month under Section 234A for late filing. Additionally, if you haven’t paid your advance tax on time, you’ll also face penalties under Sections 234B and 234C for shortfall in advance tax and delayed payments.
So, if you missed advance tax payments earlier, filing late means more interest on top of everything.
The Risk of Losing Benefits
If one files return late, the outcome may include loss of certain tax benefits, business losses, capital losses and so on. The only exception is for the losses related to house property which can be carried forward even after delayed.
Delayed Refunds and Loss of Refund Interest
If you’re expecting a refund, filing late can delay the whole process. Even worse, you lose out on refund interest. For example, if you file on time, and your refund is Rs 50,000, you would have earned interest of Rs 2,250 between April and December. If delaying in filing returns, one may lose a part of this interest with the refund reducing to Rs. 500. Another is a scrutiny This could lead to further delays and more paperwork.
Read More: File Your ITR After Due Date Without Penalty If You Belong to..
Who Can File Today?
For most individuals—like salaried employees, pensioners, NRIs, and others whose accounts don’t require an audit—the deadline to file ITR is September 15. But, the businesses and professionals who need to have their accounts audited have until September 30 to submit their audit reports and October 31 to file their returns. Also, those required to submit a transfer pricing report have until November 30. As of now, over 6.7 crore ITRs have been filed and around 4 crore returns have been processed.
