If you have not yet filed your Income Tax Return (ITR), today is the final chance to do so without paying penalties. The deadline for most taxpayers, including salaried employees, pensioners, and small businesses that do not require audits, falls on Monday, September 15.
The date was earlier extended from July 31, but the window now closes tonight. Missing it can bring financial penalties and limit certain tax benefits.
PENALTIES FOR MISSING THE DEADLINE
Failing to file your return by September 15 triggers a penalty under Section 234F of the Income Tax Act. Taxpayers with income above Rs 5 lakh may have to pay a late fee of Rs 5,000, while those with income below this level face a penalty of Rs 1,000.
There are further consequences if taxes remain unpaid. Interest under Section 234A applies at one per cent per month on the outstanding amount, counted from the original due date until the return is filed.
OTHER CONSEQUENCES OF LATE FILING
Beyond the financial costs, late filing restricts certain benefits. Belated filers cannot carry forward some losses, such as capital or business losses, to future years. They may also lose eligibility for some exemptions and deductions.
Another limitation is the inability to switch between the old and new tax regimes once the deadline passes.
FILING AFTER THE DEADLINE
Even if you miss today’s deadline, you are still able to file a belated or revised tax return until 31 December 2025. For those who realise errors or omissions even later, updated returns (ITR-U) can be submitted up to 31 March 2030.
However, these late filings will come with penalties and may not allow for the full range of tax benefits available to those who filed on time. The tax department underlines that late filers should be aware of these limitations as they can have a lasting effect on their finances.
Simply put, it is advised to act without delay if you still have not filed your return. Collect all necessary documents, such as Form 16, Form 26AS, Annual Information Statement (AIS), bank interest certificates, and proofs of any investments or deductions.
Use the official e-filing portal to submit your return and avoid the rush that usually occurs close to the deadline. Ensuring that your ITR is verified, either electronically or physically, is also essential, as unverified returns are not considered valid. Acting promptly can help you avoid additional complications and costs.
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