If you have missed the ITR filing deadline of September 15, there is no need to panic. You can file a belated return until December 31, 2025. However, this will incur a penalty of ₹1,000 to ₹5,000, interest on the outstanding tax, and you will lose the benefit of carrying forward losses.
ITR Filing: The last date for filing ITR for non-audit taxpayers in India was set as September 15, 2025. Those who missed this deadline can now file a belated return. The Income Tax Department provides an opportunity to file returns until December 31, 2025, under this provision. However, belated returns are subject to a penalty of ₹1,000–₹5,000 under Section 234F and interest on outstanding tax under Section 234A. Additionally, failure to file on time will result in the loss of the benefit of carrying forward losses.
Will the return be filed even after the last date has passed?
The answer to this question is yes. Taxpayers can file their income tax return even after the due date has passed. The Income Tax Department facilitates belated ITR filing so that those who could not file their returns by the deadline for any reason can still disclose their financial affairs to the government later. However, there are several penalties and conditions associated with belatedly filed returns.
What is the penalty for a belated ITR?
Under Section 234F of the Income Tax Act, a penalty is imposed on taxpayers who miss the deadline. If a person's total income exceeds ₹5 lakh, they may have to pay a penalty of up to ₹5,000. For those whose income is less than ₹5 lakh, the penalty will be ₹1,000. This penalty is added directly when you file your return.
Interest will have to be paid on outstanding tax
In addition to the penalty, interest also has to be paid on the outstanding tax. This interest is levied under Section 234A. It is calculated from the due date, i.e., September 15, until the day you actually file the return and deposit the tax. Interest is added at a rate of 1 percent per month during this period.
Right to carry forward losses ends
The biggest disadvantage of filing a belated ITR is that you will not get the facility to carry forward losses. According to Section 139(1) of the Income Tax Act, only by filing the return within the deadline can you adjust losses like business loss or capital loss in the coming years. Failure to file the return on time extinguishes this right. This means the opportunity to save tax in the future will be lost.
Until when can a belated ITR be filed?
The Income Tax Department has also set a deadline for filing belated returns. For the financial year 2024-25, you can file your return until December 31, 2025. If the return is not filed even after this date, there will be no opportunity to file a return for that assessment year.
Filing ITR on time not only saves taxpayers from penalties and interest but also simplifies many future financial transactions. While filing belated returns incurs penalties and interest, the benefit of carrying forward losses is also lost. This is why the Income Tax Department always advises taxpayers to file their returns on time.
