ITR Filing Deadline 2025: What Happens If You Miss It?

September 11, 2025

The Income Tax Return (ITR) filing deadline for Assessment Year 2025-26 is fast approaching on 15 September 2025. While millions of taxpayers—salaried employees, professionals, freelancers, and businesses—are hurrying to file on time, many remain unaware of the serious consequences of missing the deadline. From late fees and interest charges to even loss of tax benefits and prosecution in extreme cases, the implications are significant.

Late Fee Under Section 234F

The Income Tax Act, 1961, prescribes a penalty for delayed filing under Section 234F, based on the taxpayer’s income:

If total income exceeds ₹5 lakh, the penalty is ₹5,000.
If total income is below ₹5 lakh, the penalty is ₹1,000.
No penalty applies if the income is below the taxable threshold.

However, even those exempt from penalty may still face compliance issues if filing is required for reasons such as foreign income or certain financial transactions.

Interest on Unpaid Tax Liability

If you have outstanding tax dues, missing the deadline triggers additional costs under Section 234A.

Taxpayers must pay 1% interest per month (or part of a month) on the pending tax amount.
This interest is over and above the late fee.

This means that even a short delay can significantly increase the total payable.

Loss of Carry-Forward of Losses

One of the most overlooked consequences of late filing is the loss of carry-forward benefits.

Business losses and capital losses from investments or stock trading in FY25 cannot be carried forward if ITR is not filed before the due date.
This denies taxpayers the chance to offset future income with these losses, leading to higher tax burdens in subsequent years.

Delayed Tax Refunds

Taxpayers expecting refunds must also be cautious.

Refund processing for late filers is slower, often taking several extra months.
Timely filing ensures quicker refunds and smoother compliance.

Prosecution in Serious Cases

While rare, the Income Tax Department can launch prosecution proceedings in extreme cases.

Deliberate evasion or willful default can attract jail terms ranging from three months to two years.
This provision is generally invoked in cases involving large incomes, black money, or fraud.

Can You Still File After the Deadline?

Yes, a belated return can still be filed until 31 December 2025. However:

Penalties and interest will apply.
Losses cannot be carried forward.
Frequent late filers may face stricter scrutiny from the tax department.

Will the Deadline Be Extended?

In previous years, deadline extensions were granted due to GST reforms or portal glitches. However, in 2025:

Officials have indicated that an extension is unlikely unless there is a systemic technical failure.
Taxpayers are therefore advised to file well before 15 September 2025.