Filing your Income Tax Return (ITR) on time is very important. If you miss the due date, you may still file later, but you’ll face penalties, extra charges, and restrictions and many more.
What is the Last Date to File ITR??
- For most individuals in non-audit cases the last date will be 15th September 2025 which is extended from 31st July 2025.
- For audit cases: 31st October 2025.
- For revised returns: 31st December 2025.
- After these dates, you cannot file ITR at all.
Penalties & Fees for Late Filing
1. Late Filing Fee (Section 234F)
If you file after the due date but before 31st December 2025 then there will be a
- ₹5,000 penalty (if income is above ₹5 lakh).
- ₹1,000 penalty (if income is below ₹5 lakh).
Example:
Ramesh earns ₹8 lakh → and Files ITR on 20th October 2025 then → Penalty will be ₹5,000.
Sita earns ₹4.5 lakh →and she Files ITR on 20th October 2025 then → Penalty will be ₹1,000.
2. Interest on Tax Due (Section 234A)
If you still have unpaid tax and file late, you also pay 1% interest per month (or part of the month) on the outstanding tax.
Example:
Suppose you owed ₹20,000 tax and You filed 3 months late so,
Extra interest = 20,000 × 1% × 3 = ₹600.
3. Interest on Late Advance Tax (Section 234B & 234C)
If you didn’t pay advance tax properly, you may face additional interest. This mainly affects business owners, freelancers, or people with capital gains.
4. Loss of Some Benefits
If you file late, you cannot carry forward certain losses (like stock market losses, business losses, etc.).
You can only carry forward house property loss.
5. Refund Delay
If you are eligible for a refund but file late, you will get your refund late too. In some cases, you may lose out on extra interest that the government pays on refunds.
What if You Don’t File and ITR at All?
The Income Tax Department may send you a notice. In extreme cases, penalties can go up to 50% of the tax due or even prosecution (jail term for willful evasion). For small salaried taxpayers with refund cases, Central Board of Direct Taxes (CBDT )has relaxed rules, but it’s always safer to file.
How to Avoid Penalty in ITR filling??
- 1. File before 15th September 2025 (don’t wait for last day).
- Even if you cannot pay full tax, file the return this avoids heavier penalties.
- Keep your documents ready (Form 16, bank interest, investment proofs, etc.) to avoid last-minute rush.
Filing late doesn’t just mean a penalty it can also cost you more in interest and lost benefits. Even if you missed the original date, make sure to file before 31st December 2025 to avoid bigger problems.
Filing early = less stress, no extra cost, faster refund.
Also Read : How to File Income Tax Return (ITR) Online
