Taxpayers must file returns by July 31 to avoid penalties; here’s what you should know

The deadline to file your Income Tax Returns (ITR) for the Assessment Year 2025-26 is coming soon. Staying on top of it is important to avoid penalties and keep things running smoothly. Taxpayers should keep track of important deadlines and the risks of late filing to stay compliant and avoid unnecessary penalties.

Individuals and Hindu Undivided Families (HUFs) who don’t need an audit should file their ITR by July 31, 2025, to avoid penalties. Businesses that need an audit should file their returns by October 31, 2025, while those dealing with transfer pricing reports have until November 30, 2025. Taxpayers who miss the initial deadline still have until December 31, 2025, to file a belated or revised return, though they may face penalties. Taxpayers can file returns (ITR-U) within four years from the end of the relevant assessment year, with the deadline for AY-2025-26 set at March 31, 2030. This provides an opportunity to correct or update filings if needed.

Filing after the deadline but before December 31, 2025, could result in a late fee of up to ₹5,000 under Section 234F, so it is best to stay ahead of the timeline. If taxpayers miss the belated deadline and file an updated return later, they may face additional tax, which increases based on how late the filing is. Depending on the timing, this extra charge could range from 60 per cent to 70 per cent of the tax and interest due, making early filing the best way to avoid unnecessary costs. Filing your ITR on time comes with several advantages; it helps you avoid penalties, keeps interest charges in check, allows you to carry forward certain losses, speeds up refunds and ensures you stay compliant with tax laws, reducing the chances of scrutiny.

To file an ITR, taxpayers need to visit the Income Tax e-Filing Portal and log in using their PAN or Aadhaar. They should choose the right ITR form based on their income, fill in the necessary details or upload the pre-filled JSON file, verify everything and submit the return. Verification can be done through Aadhaar OTP, net banking or by sending a signed ITR-V to CPC, Bengaluru. Keeping records accurate and documents ready ensures a hassle-free process. For more details and updates, taxpayers can check the official Income Tax Department website.

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