New Delhi: The deadline to file your Income Tax Return (ITR) for Assessment Year 2025-26 is September 15, 2025. With just a few days left, millions of people- salaried employees, freelancers, professionals, and businesses- are in a hurry to meet the deadline. But what happens if you miss the cut-off? The consequences may be more serious than you think.
Late Fee Under Section 234F
If you miss the deadline, the Income Tax Department charges a late fee under Section 234F of the Income Tax Act, 1961. The amount of this fine depends on your income:
- If your total income is more than Rs 5 lakh, the late fee is Rs 5,000.
- If your income is below Rs 5 lakh, the fine is Rs 1,000.
However, if your income is below the taxable limit, there is no penalty. But keep in mind- if you are required to file ITR for other reasons, like having foreign income or assets, you could still face consequences.
Interest on Unpaid Tax – Section 234A
If you owe any tax and file late, you will also have to pay 1 percent interest per month (or part of a month) on the pending tax amount, under Section 234A. This is separate from the late fee, so the financial burden can add up quickly.
Loss of Carry-Forward Benefits
Another big drawback of filing after the deadline is that you lose the right to carry forward losses. For example, if you had capital losses from stocks or business losses in FY 2024–25, you can only use them in future years if you file your ITR before September 15.
Delayed Refunds
Even if you are due for a tax refund, filing late means your refund will be processed more slowly. Early filers usually get their money faster, while late filers may wait several months.
In Serious Cases, Prosecution Is Possible
In rare and serious situations, such as intentional tax evasion or hiding large amounts of money, the Income Tax Department can take legal action. This could lead to jail time between 3 months to 2 years, depending on the severity of the case.
Can You File After the Deadline?
Yes, you can still file a belated return until December 31, 2025. But it comes with penalties and restrictions. Also, the tax department is keeping a closer eye on regular late filers, so repeated delays may cause more issues in the future.
Is There a Chance of Deadline Extension?
In past years, deadlines were sometimes extended due to GST reforms or portal glitches. But this year, officials have said extensions are unlikely, unless there are major technical issues.
