ITR Filing Deadline Extended, Check The Date, But What If You Still Miss?

 ITR Filling AY 2025-26 Deadline: Taxpayers who are not in need of an account audit now have until September 15, 2025, to file their Income Tax Returns (ITR) for the financial year 2024–25 (assessment year 2025–26). This new date is an extension as the originally set July 31 date would have been an unmet deadline.

However, if the tax filers still cannot meet the September 15 filing date of all tax filers, documentation is considered late returns, and can incur penalties and interest charges under the Income Tax Act. Experts have warned not about penalties but missed monetary as well which can often dictate refunds as opposed to loans which are all about risk. Also in more general terms about financial credibility.

What is ITR? 

ITR (Income Tax Return) is a document filed by the taxpayer to the Income Tax Department that contains information relating to income, expenses, taxes paid, and tax outstanding on account of a financial year. The taxpayer will select the form of ITR based on the taxpayer and type of income: individual income taxpayers; companies; or Hindu Undivided Family. The various individual income include; salary income, business income, and capital gains income. If the taxpayer files the correct ITR the taxpayer will be compliant, taxpayers will obtain refunds and if applicable carry forward any losses.

Penalty and Interest for Late Filing

Section 234F of the Income Tax Act, 1961 outlines business rules about late fees, with the penalty filing as it is a filing as well, of  ₹ 5,000 for amounts that are less than late returns (on or after, due date). The penalty for taxpayers whose total income is ₹5 lakh or less (other than denied, indisputable income), is ₹1,000 which is still a penalty. What’s worse is this penalty is filed or issued with and responsibility that outlines if there is a tax payable or not.

Further, if there are pending tax dues, taxpayers will be required to pay interest on the due amount while filing the belated return.

Who is Required to File ITR?

ITR filing is not only for individuals with income above the exemption threshold but also in a few cases, like:

Spendings of ₹2 lakh or more on international travel a year,

Payment of ₹1 lakh or more in yearly electricity bills,

Depositing ₹1 crore or more in current accounts.

Additionally, other conditions in Section 139(1) require ITR to be filed even if the income is less than basic exemption. 

No Penalty for Low-Income Taxpayers

If the income tax liability is below or equal to the basic exemption (before any allowance for deductions) there will be no penalty if the return is filed late. However, it is still necessary to file a return because taxpayers should obtain refunds, and comply with reporting requirements.

The Importance of Filing ITR on Time

Filing your ITR on time will clearly enable a taxpayer to timely process refunds, provide evidence of income for credit cards, visas, and loan applications, and increase confidence of financial institutions regarding a taxpayer. The financial professionals advocate that a filing ITR on time is evidence of financial prudence and maximizes the taxpayer’s ability to avoid unnecessary interest and penalty. 

ALSO READ: Missed The ITR Filing Deadline? It’s Been Extended, But Here’s Why You Shouldn’t Delay