MISSED ITR DEADLINE 2025? HERE’S WHAT YOU CAN DO.

In case you missed the extended due date for filing your non-audit ITR, you still have an opportunity to remain compliant. Under Section 139(4) a belated return can be filed, with the due date for AY 2025-26 being 31st December 2025. The procedure remains the same, but involves additional costs. This blog guides you through the process.

The due date for filing Income Tax Returns (ITRs) for the financial year 2024-25 (assessment year 2025-26) was on 15th September 2025. After receiving numerous complaints of technical glitches and appeals from professionals, the Central Board of Direct Taxes (CBDT) provided a one-day extension, allowing taxpayers until 16th September 2025 to complete their filings.

With the deadline now over, a key question arises: what options are available for taxpayers who missed filing on time?
The answer is that you can still file your ITR, though certain conditions and implications will apply.

LEGAL PROVISIONS UNDER THE INCOME TAX ACT, 1961

  • • Section 139(4) - Enables taxpayers to file a belated Income Tax Return (ITR) after the original due date.
  • • Section 139(8A) - Permits the filing of an updated return to rectify errors or disclose previously omitted income, even post-deadline.
  • • Section 142(1) - Authorizes the Assessing Officer (AO) to issue a notice requesting information or documents prior to or during assessment.
  • • Section 148 - Empowers the tax authorities to initiate reassessment where income has escaped assessment.
  • • Section 234A - Imposes interest on taxpayers for late filing of ITR on outstanding tax liabilities.
  • • Section 234F – Levies a late filing fee for delayed ITR submission, with the amount determined by the taxpayer’s total income.


BELATED RETURNS:

A belated return refers to an ITR filed after the original deadline. Under Section 139(4) of the Income-tax Act, 1961, taxpayers can file a belated return for the Financial Year 2024-25 on or before 31st December 2025, or before the completion of assessment, whichever is earlier. For the current financial year, the last date is 31st December 2025. The procedure is the same as regular filing, though late fees and interest may apply.

PENALTIES AND RISKS FOR NOT FILING ITR:

  1. 1. Penalty Charges:
Under Section 234F, a late fee of Rs. 1,000 applies to taxpayers with income up to Rs. 5 lakh, and Rs. 5,000 applies to those with income exceeding Rs. 5 lakh.

  1. 2. No carry-forward of losses:
• Business and capital losses from investments cannot be set off against future income to lower your tax liability.
• Late filing prevents carry-forward of losses, except for house property losses, which can still be carried forward.
• Also, the option to opt for the old tax regime is no longer available.

  1. 3. Interest on the Tax Amount:
Under Section 234A, interest of 1% per month is charged on any unpaid tax from the due date until it is paid.
For instance, if you owe Rs. 2 lakh for FY 2024-25 and pay three months late, Rs. 6,000 (2 lakh × 3%) will be added to your liability. The longer the delay, the higher the interest charged, increasing your overall tax burden.

  1. 4. Prosecution:
If you fail to file your ITR, you may face rigorous imprisonment and a fine: rigorous imprisonment of 6 months to 7 years with a fine if the tax liability exceeds Rs. 25,000, and rigorous imprisonment of 3 months to 2 years with a fine if it is less than Rs. 25,000.

FAQs

Q1. What happens if I don’t file my ITR for several years?
The Income Tax Department can issue a notice under Section 142(1) or 148 for non-filing. This can attract heavy penalties, interest, and even prosecution. Additionally, banks may refuse loan applications if no ITRs are available.

Q2. Are there penalties for late filing?
Yes. Under Section 234F, a late fee of Rs. 1,000 applies for incomes up to Rs. 5 lakh, and Rs. 5,000 for incomes above Rs. 5 lakh. Late filing can also attract interest under Section 234A and may delay refunds.

Q3. Is it possible to submit returns after the belated return deadline has passed?
Yes, even if you missed both the original and belated returns deadlines, you still can file an updated return. However, this will involve paying additional tax, interest, and late fees. According to Section 139(8A) of the Income Tax Act, such returns can be filed within four years from the end of the relevant assessment year.

Q4. Can I carry forward losses if I file late?
No. Business and capital losses cannot be carried forward if the ITR is filed late. House property losses can still be carried forward. Additionally, you cannot opt for the old tax regime once a belated return is filed.

KEY TAKEAWAYS

Missing the extended ITR deadline is not the end—filing a belated return allows you to stay compliant. However, late filing comes with penalties, interest, and limited carry-forward of losses. Acting promptly reduces your tax liability, avoids legal risks, and ensures your financial records remain in order. The key is to file as soon as possible and minimize the impact of delays.

We can help you file your belated return accurately and on time, minimize penalties and interest, manage eligible losses, and ensure full compliance—providing a hassle-free and stress-free tax filing experience.

With TAXOSMART, your tax return is in safe hands.
Stay informed, stay transparent—and most importantly, stay stress-free. Let us help you file smartly, and secure your financial peace of mind.

DISCLAIMER

The information contained in this document is prepared by R.J. Soni & Associates and TaxOSmart LLP (hereinafter referred to as RJSA) for information purpose only. It does not constitute any legal advice or tax advice. In no way, this document should be treated as a marketing material or efforts to solicit a client. While we have made every attempt to ensure that the information contained in this document is true, RJSA, its partners and/or any of its employees make no claims / guarantee about its accuracy, completeness, or up-to-date character, or warranty, express or implied, including the warranty of opinions expressed for a particular purpose, or assume any liability or responsibility for the accuracy, completeness, or usefulness of any information available from this document.