The second half of the year is always buzzing with excitement of festivals, family gatherings, travel plans, and plenty of celebrations. However, amidst all the joy, there is one important task that deserves a place on your checklist if you truly want to celebrate stress-free, i.e., filing your Income Tax Return (ITR) on time. It is surprising that in a hugely populated country like India, only about 3-5% of the population actually files and pays taxes. While that may sound like a small slice, this group plays a huge role in keeping the economy running smoothly. And if you miss the filing deadline, it is not just a minor slip, but it can come with consequences that may affect both your peace of mind and your wallet. So, what really happens if you do not file your ITR on time? Check out this blog to know the answer to this question and more on filing income tax returns.
The deadline for filing the ITR is broadly divided into two categories, i.e., audit and non-audit taxpayers. The eligible taxpayers in each category and the deadline for them are highlighted below.
Most individual taxpayers, salaried employees, pensioners, HUFs and small businesses or professionals who do not fall under the audit requirement belong to this category. The due date for such taxpayers to file their ITR for FY 2024-25 is 15th September 2025 (as extended by the government from the usual 31st July deadline). Thus, if the income of eligible taxpayers is taxable and they do not need to get their accounts audited, they should file their return by this date to avoid late fees or penalties.
Certain businesses and professionals are required to get their accounts audited under the Income Tax Act. This generally applies when turnover or gross receipts cross specified limits (for example, businesses with turnover above Rs. 1 crore or professionals with receipts above Rs. 50,00,000, subject to conditions). The last date for filing the ITR for such taxpayers is 31st October 2025. This extra time is given because the audit process itself takes additional effort and documentation.
If a taxpayer has entered into international or specified domestic transactions that require a transfer pricing report, the due date for filing the ITR is 30th November 2025. This allows sufficient time to complete the detailed compliance required for such cases.
Filing ITR is not just a legal formality but is part of an essential checklist that benefits and protects taxpayers from unnecessary trouble later. The importance of filing ITR within the due dates is explained below.
Filing an Income Tax Return (ITR) is not optional for individuals whose income crosses the basic exemption limit. It is a legal obligation under the Income Tax Act. By filing returns on time, a taxpayer fulfils their duty as a responsible citizen and contributes to the nation’s growth. Ignoring this responsibility may lead to penalties or even legal notices.
When a taxpayer delays filing their ITR, they may face a late fee of up to Rs. 5,000 under Section 234F, along with interest on unpaid taxes. Timely filing helps avoid these unnecessary expenses and ensures peace of mind, as the taxpayer knows their compliance is up to date.
In many cases, tax deducted at source (TDS) may be higher than the actual tax liability. Filing an ITR is the only way to claim back the excess amount. Without filing, the taxpayer loses out on money that rightfully belongs to them.
If a taxpayer incurs losses from business, profession, or capital gains (such as stock market investments), these can be carried forward and set off against future income. However, this benefit is available only if the ITR is filed before the due date. Missing the deadline means losing this valuable advantage.
Banks and financial institutions often ask for ITR records of the past few years when someone applies for a home loan, car loan, or personal loan. The ITR serves as proof of income and financial stability. A taxpayer with regular ITR filings is more likely to have their loan applications approved quickly.
Many embassies require ITR documents when processing visa applications. Regular filing shows that the taxpayer has a stable financial background in India, making it easier to get visas approved for travel, work, or studies abroad.
An ITR acts as a strong proof of income and, in some cases, proof of address. It is more reliable than salary slips or Form 16. This proof is often useful for government tenders, property purchases, or other high-value financial transactions.
The consequences of not filing the ITR on time can be severe and can have a lasting impact on the taxpayer and their financial history. Some of the prime consequences of not filing the ITR within the deadline are highlighted below.
If a taxpayer misses the due date for filing their Income Tax Return, they are required to pay a late filing fee under Section 234F. The fee can be up to Rs. 5,000 if the return is filed after the deadline but before 31st December of the assessment year. However, if the total income is below Rs. 5,00,000, the maximum fee is restricted to Rs. 1,000. Filing the ITR on time helps avoid this additional cost.
When there is tax payable and the return is filed late, interest is charged at 1% per month or part of the month on the outstanding tax amount. This increases the taxpayer’s liability unnecessarily. Timely filing ensures that one pays only the actual tax without extra interest.
Taxpayers who have incurred losses, such as business losses or capital losses from shares or property, can carry these forward to offset them against future income. However, if the ITR is not filed within the due date, this benefit is lost. Only losses from house property are allowed to be carried forward, even if the return is filed late.
If excess tax has been deducted at source (TDS), a refund can only be claimed by filing the ITR. Filing after the deadline not only delays the refund process but, in some cases, may result in the taxpayer losing the refund altogether if the return is not filed within the extended window.
Not filing an ITR can attract scrutiny from the Income Tax Department. In cases of willful default, the department may initiate prosecution, which can lead to fines and even imprisonment ranging from 3 months to 2 years. If the tax sought to be evaded exceeds Rs. 25,00,000, the imprisonment may extend up to 7 years.
Many financial institutions, such as banks and NBFCs, require ITR documents as proof of income before approving loans or credit cards. A taxpayer who does not file their ITR on time may face delays or rejection of loan applications, as the absence of an ITR record reduces financial credibility.
The steps to successfully file an ITR are,
Collect All Documents
Gather Form 16 (from your employer), Form 26AS, Annual Information Statement (AIS), TDS certificates, bank statements, interest certificates, and proofs of tax-saving investments.
These documents help in reporting accurate income and claiming deductions.
Choose the Right ITR Form
The Income Tax Department has different ITR forms (ITR-1, ITR-2, ITR-3, ITR-4, etc.).
Select the form that matches your income type (salary, business, capital gains, etc.).
Visit the Income Tax e-Filing Portal
Go to the official website www.incometax.gov.in
Log in using your PAN (Permanent Account Number), Aadhaar-linked mobile, and password.
Select ‘File Income Tax Return’
Once logged in, click on ‘e-File’, select ‘Income Tax Returns’, and finally select ‘File Income Tax Return’
Choose the Assessment Year 2025–26 (for income earned in FY 2024-25).
Pick the Filing Mode
You can choose online (directly filling in details on the portal) or offline (downloading the utility, filling it, and then uploading).
Fill in Personal and Income Details
Verify your personal information (name, address, Aadhaar, PAN).
Enter your income from salary, business, house property, capital gains, and other sources.
Report deductions (like Section 80C, 80D, etc.) to reduce taxable income.
Check Tax Liability
The system automatically calculates your total tax payable or refund after deductions.
Cross-check with Form 26AS and AIS to ensure all TDS and income details match.
Pay Outstanding Tax (if any)
If there is any balance tax payable, pay it online using ‘e-Pay Tax’ on the portal.
Only after full payment can the return be submitted.
Preview and Submit the ITR
Review all entered details carefully.
Submit the return online once everything is accurate.
Verify the Return
Filing is complete only after verification.
You can e-verify using Aadhaar OTP, net banking, or EVC (Electronic Verification Code).
Alternatively, you can send a signed physical copy (ITR-V) to the Central Processing Centre (CPC), Bengaluru, within 30 days.
Save the Acknowledgement
After successful filing and verification, download and save the acknowledgement (ITR-V) for future reference.
An Income Tax Return (ITR) can still be filed even after the deadline, but it is called a belated return. As per the Income Tax Act, a belated return for FY 2024-25 (AY 2025-26) can be filed up to 31st December 2025. However, filing the ITR after the due date comes with some consequences as explained above. So while it is possible to file after the deadline, taxpayers are always better off filing within the due date to avoid penalties and keep their financial records clean.
ITR filing is an important ritual repeated every year and requires strict adherence. The consequence of missing the deadline can add to the emotional and financial stress on the taxpayer and also lead to a blemished financial record. While the department provides the option to file belated returns, it is advisable to file the ITR on time to stay compliant, save money, and maintain a smooth financial record.
This article talks about an important event or part of the yearly checklist to be completed by all taxpayers. Let us know your thoughts on the topic or if you need further information on the same, and we will address it soon.
Till then, Happy Reading!
Read More: How to Declare Mutual Funds Returns in ITR?
Marisha Bhatt is a financial content writer @TrueData.
She writes with the sole aim of simplifying complex financial concepts and jargon while attempting to clarify technical and fundamental analysis concepts of the stock markets. The ultimate goal is to spread vital knowledge and benefit the maximum audience. Her Chartered Accountant background acts as the knowledge base to help clarify crucial concepts and create a sound investment portfolio.
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efiling ITR compulsory requires form 16??
Form 16 is helpful but not compulsory for e-filing ITR. You can also file ITR using Form 26AS, AIS, or salary details. We hope this resolves your query. Keep reading and engaging with TrueData for more informative content!
Good post about ITR filing
Thank you for sharing your thoughts! We’ll keep bringing more informative posts on such topics.
Good info. thanks for the post
You're most welcome! We’re glad the post was helpful for you.
Good info . thankzz for sharing
Glad you found it useful! Thanks a lot for appreciating our work.
Deductions are also there while e-filing the ITR.
Yes, deductions are a critical part of filing an ITR. Some might even say most important, as they directly contribute to reducing tax liability. However, the new tax regime does not offer the usual deductions like 80C, 80DD, etc. So taxpayers need to be aware of these crucial changes while filing their ITR.
nice blog
Thank you for your valuable feedback, Sir!
Very useful information
Glad you liked our work, Sir! Stay tuned for more informative content on TrueData!
Good post
Glad you like our work Sir!
Good post!
Great post!
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