Planning to give ITR filing a miss? You must know the consequences
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Late Filing Fee (Section 234F): If the correct ITR is not filed within the prescribed due date (i.e. 15th September 2025 for AY 2025-26), a late fee of up to Rs. 5,000 may be levied. For taxpayers with taxable income below Rs 5 lakh, the maximum fee is Rs 1,000.
If the correct ITR is not filed within the prescribed due date (i.e. 15th September 2025 for AY 2025-26), a late fee of up to Rs. 5,000 may be levied. For taxpayers with taxable income below Rs 5 lakh, the maximum fee is Rs 1,000. Interest under Sections 234A: Taxpayers would be liable to pay simple interest u/s 234A at the rate of 1% for every month or part of a month, starting from the date immediately following the due date to the actual date of furnishing of the return; or in case no return has been furnished, ending on the date of completion of the Best judgement assessment by the revenue authorities u/s 144 of the Income Tax Act.
Also Read | Due date to pay final tax without penalty is September 15, 2025, not July 31, 2025
Taxpayers would be liable to pay simple interest u/s 234A at the rate of 1% for every month or part of a month, starting from the date immediately following the due date to the actual date of furnishing of the return; or in case no return has been furnished, ending on the date of completion of the Best judgement assessment by the revenue authorities u/s 144 of the Income Tax Act. Also Read | Due date to pay final tax without penalty is September 15, 2025, not July 31, 2025 Loss of Benefits: If a taxpayer files a tax return after the deadline set by Section 139(1) of the Income Tax Act, they might miss out on some deductions and the ability to offset and carry forward losses (except for losses related to house property).
If a taxpayer files a tax return after the deadline set by Section 139(1) of the Income Tax Act, they might miss out on some deductions and the ability to offset and carry forward losses (except for losses related to house property). Penalty for Concealment or Misreporting (Section 270A): If a taxpayer has taxable income but doesn't file their income tax return, there are enabling provisions to levy a penalty under Section 270A, which can be up to 50% of the tax that the taxpayer might have avoided by not submitting the income tax return.
If a taxpayer has taxable income but doesn't file their income tax return, there are enabling provisions to levy a penalty under Section 270A, which can be up to 50% of the tax that the taxpayer might have avoided by not submitting the income tax return. Prosecution (Section 276CC): The Income Tax authority also has the power to initiate prosecution under Section 276CC against defaulting taxpayers, which could lead to rigorous imprisonment of at least 3 months but can go up to 2 years, plus a fine. Moreover, if the tax that might have been evaded is over Rs. 25,00,000 and the failure to file ITR had not been discovered, the imprisonment could be anywhere from 6 months to 7 years along with a fine. However, no prosecution can be initiated if the tax that is being evaded is up to Rs 10,000/- or if an updated return is filed under Section 139(8A) of the Income Tax Act.
The Central Board of Direct Taxes ( CBDT ) extended the due date for filing income tax return for FY 2024-25 (AY 2025-26) to September 15, 2025, from the original deadline of July 31, 2025. The deadline was extended by 45 days due to structural changes required in the ITR form. This includes changes in the capital gains tax regime, income tax slabs, etc. However, in case you miss filing ITR within the due date, then there could be several consequences depending upon your specific case.ET Wealth Online spoke to Dr Suresh Surana, a practising chartered accountant, to understand how not filing ITR can affect you. It is important to note that ITR filing is mandatory in some instances, even if the gross taxable income is below the basic exemption limit.Also Read | You must file ITR in 8 conditions even if taxable income below basic exemption limit Dr Surana lists out the consequences that a taxpayer can face if the ITR is not filed on or before the due date of September 15, 2025, for FY 2024-25 (AY 2025-26).Also Read | Income tax slabs for salaried employees for ITR filing
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