For ITR filing AY 2025-26 (Financial Year 2024-25), if you miss the extended due date of September 15, 2025 (for individuals and non-audit cases), you will be subject to penalties under the Income Tax Act. These penalties are primarily outlined in Section 234F and Section 234A.
Here’s a breakdown of the penalties:
1. Late Filing Fee under Section 234F:
This is a fixed penalty levied for filing the ITR after the due date. The amount depends on your total income:
- If your total income is up to ₹5 lakh: The late filing fee is ₹1,000.
- If your total income exceeds ₹5 lakh: The late filing fee is ₹5,000.
This fee applies if you file your belated return by December 31, 2025 (the last date to file a belated return for AY 2025-26). If you miss this belated return deadline as well, further complications and higher penalties could arise, potentially requiring you to file an updated return (ITR-U) with substantially higher additional tax.
2. Interest on Unpaid Tax under Section 234A:
If you have any tax due that you haven’t paid by the original due date (September 15, 2025, for AY 2025-26), you will also be charged interest.
- Interest is levied at a rate of 1% per month or part of a month on the unpaid tax amount.
- This interest is calculated from the day immediately following the due date until the date you actually file the return and pay the tax.
Other Consequences of Late Filing:
Beyond the direct monetary penalties, late filing of your ITR can lead to other disadvantages:
- Loss of Carry Forward of Losses: If you have incurred losses (e.g., from business, capital gains, or certain other sources, except house property loss), you generally cannot carry them forward to set off against income in future years if your ITR is filed after the due date. This can increase your future tax liability.
- Delay in Refunds: If you are eligible for a tax refund, filing late will delay the processing and receipt of your refund.
- Loss of Interest on Refunds: Interest on any tax refund due to you might be calculated only from the date of filing the belated return, not from the original due date.
- Increased Scrutiny: Consistent late filing or non-filing can attract the attention of the Income Tax Department, potentially leading to scrutiny or notices.
Therefore, it is always advisable to file your Income Tax Return on or before the prescribed due date to avoid these penalties and adverse consequences.
