ITR filing deadline 2025: What happens if you miss it?
The consequences of missing the ITR filing deadline can be more serious than most people assume, from late fees to prosecution in serious cases.
The clock is ticking for taxpayers as the Income Tax Return (ITR) filing deadline for Assessment Year 2025-26 approaches on 15 September 2025. Millions of salaried employees, freelancers, professionals, and businesses are rushing to meet the cut-off. But what if you miss the deadline? The consequences can be more serious than most people assume.
Late Fee Under Section 234F
The Income Tax Department imposes a late filing fee under Section 234F of the Income Tax Act, 1961. The penalty is linked to your income level:
- If your total income is above ₹5 lakh, you must pay a fine of ₹5,000.
- If your total income is below ₹5 lakh, the penalty is capped at ₹1,000.
- No penalty applies if your income is below the taxable threshold, but you may still face consequences if you are required to file for other reasons (such as foreign income).
Interest On Unpaid Tax
If you have any outstanding tax liability, missing the deadline adds another burden. Under Section 234A, you will have to pay 1% interest per month or part of the month on the pending tax amount. This is over and above the late fee.
Loss Of Carry-Forward Benefits
One of the most overlooked penalties is the loss of carry-forward benefits for losses. For example, if you have incurred business losses or capital losses (say, from stock market trading) in FY25, you cannot carry them forward to offset gains in the coming years unless you file your ITR before the due date.
Delayed Refunds
Even if you are due for a refund, filing after the deadline slows down processing. Refunds filed late may take months longer to get credited compared to those filed before the deadline.
Prosecution in Serious Cases
In extreme cases where taxpayers deliberately evade filing, the Income Tax Department has the authority to launch prosecution. This is rare and usually applies to cases involving very high incomes, black money, or fraudulent activities, but the law provides for jail terms of three months to two years if the default is willful.
Can You Still File After The Deadline?
Yes. You can still file a belated return until 31 December 2025. However, this comes with the penalties mentioned above and restrictions on loss carry-forward. The Income Tax Department has also indicated it will track chronic late filers more strictly, in line with its drive for higher tax compliance.
Will The Government Extend The Deadline?
Taxpayers are hoping for an extension, especially given the backdrop of GST reforms and portal glitches in recent years. However, officials have suggested that extensions are unlikely this year unless there is a technical failure in the filing system.
The ITR deadline is not just a date on the calendar—it’s a line between smooth compliance and unnecessary penalties. Filing on time saves money, ensures faster refunds, and keeps you on the right side of the tax department.
