Income Tax Department will impose this much penalty on taxpayers who do not file their taxes this year.

ITR Filing: If you haven’t filed your ITR this year, you still have a chance until December 31, 2025. Learn about the penalty for late filing, when you can file, and the potential consequences of not filing.

ITR Filing: This year, the tax department extended the deadline for filing income tax returns (ITRs) twice. This was due to technical issues, form changes, and delays in audit reports. For taxpayers who did not require an audit, the ITR filing deadline was September 16, 2025.

The Central Board of Direct Taxes (CBDT) has extended the tax audit report filing deadline from September 30 to October 31, 2025. However, for taxpayers who are required to have an audit, there has been no additional extension in the ITR filing deadline. The ITR filing deadline remains the same as the audit report filing deadline.

Who needs an ITR?

In India, every individual whose annual income exceeds the taxable limit is required to file an ITR. For FY 2024-25, these limits are ₹2.5 lakh for general taxpayers, ₹3 lakh for senior citizens above 60 years of age, and ₹5 lakh for super senior citizens above 80 years of age.

Even if your income is below these limits, filing an ITR may be necessary in certain cases: for example, if you have more than ₹1 crore in your bank account, have spent more than ₹2 lakh on foreign travel, or have incurred electricity bills exceeding ₹1 lakh.

Two Categories of Taxpayers

Taxpayers are divided into two categories: the non-audit category and the audit category. Let’s learn more about them.

Non-Audit Category: This includes salaried individuals, pensioners, small businesses, or freelancers who do not require an audit of their accounts. The deadline for filing ITR for this category was September 16, 2025.

Audit Category: This includes businesses and professionals with an annual turnover of more than ₹1 crore or professional income of more than ₹50 lakh. They are required to submit an audit report. This year, the deadline for filing audit reports has been extended to October 31, 2025, but the ITR filing date remains unchanged.

What if you don’t file your ITR on time?

If you fall into the non-audit category and haven’t filed your ITR by September 16, the opportunity is still not over. You can file a Belated ITR until December 31, 2025. However, you will be subject to certain penalties and interest.

  • If your income exceeds ₹5 lakh, you will be liable to pay a penalty of ₹5,000.
  • If your income is less than ₹5 lakh, the penalty will be up to ₹1,000.
  • Also, if there is tax due, you will be liable to pay interest at the rate of 1% per month (under Section 234A).

Failure to file a belated ITR will increase your difficulties.

If you fail to file a belated ITR, the Income Tax Department can track your income through bank transactions, TDS, AIS, and SIS reports. If any discrepancies are found, you may receive a notice. Furthermore, you will not be able to file an ITR after December 31, 2025.

In certain cases, you can seek permission to file a late ITR through a Condonation Request, but this will be entirely subject to the department’s approval.

Failure to file a heavy penalty and risk investigation.

If the tax department discovers your undeclared income, you could face penalties ranging from 100% to 300%. In serious cases, a tax evasion case and legal action are also possible.

The ITR is not just a tax return, it is proof of your financial standing. Failure to file an ITR could create difficulties when applying for a bank loan, business loan, education loan, or foreign travel visa. Both banks and embassies consider ITR as a financial record.

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