Income Tax: There may be a heavy penalty for not filing returns before September 15, know the details
The deadline to file ITR is September 15. But experts say that you should not wait for the deadline to file ITR. If you do not file your return on time, you may even have to go to jail. Know the full details…
New Delhi: The Income Tax Department had extended the last date for filing ITR for the financial year 2024-25 from July 31 to September 15, 2025. This is definitely a relief, but it does not mean that you become careless. If you do not file the return on time, you may have to face action like penalty interest, loss of tax benefits and even jail.
Negligence will be costly
The Income Tax Department (CBDT) had extended the last date for filing ITR for the financial year 2024-25 (assessment year 2025-26) from July 31 to September 15, 2025. This increase was done due to structural changes in the ITR form, such as changes in Capital Gains Tax, new tax slab system etc. But this relief is limited only to the date. If you do not file the return even by September 15, then you may get into many problems.
Late filing fee also
If you do not file the return by the due date, then you will have to pay late filing fee under section 234F of the Income Tax Act. If your total taxable income is more than 5 lakhs, then a penalty of up to 5,000 can be imposed. For those with income less than 5 lakhs, this penalty is limited to 1,000.
1% interest will have to be paid every month
For filing the return late, 1% interest will have to be paid every month under section 234A. This interest will be charged every month or part of it after 15 September 2025, until the return is filed or the ‘best judgment assessment’ is not done by the Revenue Department. This interest can put an additional burden on the tax liability.
Will not be able to avail tax exemption
If you file the return after the due date, then you will not be able to avail some important tax exemptions. Apart from this, the business loss incurred in a financial year cannot be carried forward to the next years.
Heavy penalty for giving wrong information
If your income is taxable but you have deliberately not filed the return, then the Income Tax Department can impose a penalty of up to 50% of the tax amount on you under section 270A. This case is made when the intention to hide tax or give wrong information is proved.
There is also a provision of jail in serious cases
If the amount of tax left is more than 25 lakhs and you deliberately did not file ITR, then the Income Tax Department can prosecute you under section 276CC. Under this, you can be sentenced to a minimum of 6 months to 7 years and fined.
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