Still Not Filed ITR? Know Consequences of Late Filing of Return

As the due date of income tax return (ITR) filing approaches, many people are still waiting to file their return. If you are one of them, then you should know that filing your return late can result in some serious consequences. It can cost you more than you might think.

ITR Due date for AY 2025-26

Here is the due date for the return filing for AY 2025-26.

What if You Do Not File a Return on Time?

Taxpayers who fail to file a return within the due date of ITR filing are allowed to file a Belated Return. However, the belated return attracts interest and a late fee, along with other penalties, which can be costly for you. Here are the other consequences of the late filing of the ITR.

Restriction on Carry Forward of Losses: If you file a belated return, you cannot carry forward and set off business and capital losses in the future financial year.

Late Fee Under Section 234A: Taxpayers will be liable to pay a late fee under Section 234A for filing a belated return. The late fee for belated return is Rs 1,000 for taxpayers having a gross total income of up to Rs 5 Lakh. The penalty is Rs 5,000 for the taxpayers having a total income above Rs 5 lakh.

Interest: If you file a belated return, then this will attract an interest of 1% per month on the outstanding tax amount under section 234A.

Delayed Refund: If you are entitled to receive a tax refund, then it might be delayed if you file your return late.

No Old Tax Regime: A Belated return can only be filed under the new tax regime. The taxpayers cannot select the old tax regime for filing the belated return.

Loss of Tax Benefits: Filing a Late return means losing some tax benefits under sections 10A, 10B, 80-IE, 80-IB, 80-IC, and 80-ID.

Taxpayers must not wait for the last-minute ITR filing, as it could also increase the chances of making errors. With only a few days left, taxpayers are advised to file their ITR as soon as possible.