ITR filing FY 2024-2025: The deadline or due date for filing Income Tax Returns (ITR) for Assessment Year 2025-26 is September 15, 2025. This due date is unlikely to be extended, and hence it is advisable to file your ITR on or before this deadline.However, if for any reason, you are unable to file a tax return by the due date, you can file a belated return by 31 December 2025. However, be mindful of the penalty and interest implications, along with other repercussions:
How much is the penalty for late filing of ITR?
Late‑filing fee under Section 234F of the Income Tax Act attracts a penalty:
- If total income ≤ Rs 5 lakh: Rs 1,000
- If total income > Rs 5 lakh: Rs 5,000
There are also interest implications under Section 234A, 234B and 234C for outstanding tax liabilities:
- Interest under Section 234A becomes applicable when a taxpayer fails to file their income tax return by the prescribed due date. This interest is levied at the rate of 1% per month or part of the month on the net outstanding tax liability—i.e., the unpaid tax remaining after considering TDS, advance tax, and self-assessment tax already paid, Preeti Sharma, Partner, Tax & Regulatory Services, BDO India LLP tells TOI.
- The interest continues to accrue from the original due date till the actual date of filing or full payment of taxes, whichever is later. Even a delay of one day into the next month triggers interest for the full month. Crucially, this 234A interest is independent of and in addition to two other interest provisions under the Income Tax Act:
- Section 234B imposes interest if the taxpayer has failed to pay at least 90% of the total tax liability as advance tax by the end of the financial year (i.e., by 31 March 2025). The interest is calculated from 1 April till the date of payment.
- Section 234C applies when advance tax instalments—due quarterly—are either not paid or paid late. Interest is levied for shortfalls in each quarter as per specified percentages.
“Therefore, a taxpayer who has not paid adequate advance tax during the year and delays filing the return beyond the due date, may end up bearing a three-fold interest burden under Sections 234A, 234B, and 234C. The cumulative impact of these provisions can significantly inflate the overall tax outgo. Timely payment of advance tax and adherence to the ITR deadline is thus not just a compliance requirement, but also a critical strategy for minimizing penal costs,” she says.
Late filing of ITR FY 2024-25: Other repercussions
Bear in mind that you will not be allowed to opt for the old income tax regime when filing a belated tax return. This is the case even if you opted for the old regime at the start of the financial year with your employer. The new income tax regime is the default regime, and ITR filing beyond the deadline or due date results in being switched to the new regime.Additionally, you can’t carry forward any business and/or capital losses. “As the new regime will be mandatory, you will not be allowed to set off or carry forward losses from a self-occupied house property. However, any loss from rented house property, which is not set off with the current year’s income, will be allowed to be carried forward,” explains Preeti Sharma.
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