Income Tax Deadline Countdown Begins! 5 Things That Can Go Wrong If You File ITR After September 15

The Income Tax deadline is just three days away and the procrastinators must be chasing their tax consultants, CAs, and other professionals to file Income Tax Return (ITR) for Assessment Year 2025-26 before September 15. For those who are hoping to file a delayed ITR after Septemebr 15, it is important to understand a range of consequences they can face on missing the ITR deadline.

What Happens When You Miss The ITR Deadline?

Missing to file the ITR before deadline can lead to penalties, fines and imprisonment in extreme cases. With just three days left for the ITR deadline, here is a list of things that can go wrong because of missing the ITR deadline.

Penalties

The Income Tax Department (I-T) imposes a late fee under Section 234F of the Income Tax Act, 1961 on those who miss the ITR deadline. For those with an income exceeding Rs 5 lakh, a penalty of Rs 5,000 is imposed. If your income is below Rs 5 lakh, the fine is limited to Rs 1,000. However, no penalty applies if your income falls below the taxable threshold.

Unpaid Taxes and Piling Interest Rates!

Above late ITR penalties, taxpayers may also end up paying interest on their unpaid taxes. Taxpayers would be required to pay an interest rate of 1% on outstanding tax amounts, as per Section 234A. The interest is added in the late fees amount.

Losing On Carry-Forward Benefit

If a person with business or capital losses fails meet the ITR deadline, then there is a chance of losing carry-forward benefit for losses.

Delay In Refunds

Missing the ITR deadline would mean that people may face delay in receiving their income tax refunds. Even if you're eligible for a refund, submitting your return after the deadline can delay processing. Refunds filed late may take significantly longer to be credited compared to those submitted before the cut-off date.

Prosecution In Serious Cases

In serious cases where taxpayers intentionally avoid filing returns, prosecution is possible. Although rare and typically involving high incomes or fraudulent activities, the law allows for jail terms ranging from three months to two years for deliberate defaults.

While these are the potential drawbacks of missing the ITR deadline, people can file their belated ITR till December 3, 2025. While filing belated ITR is possible, taxpayers would be required to pay penalties and restrictions on loss carry-forward.

The ITR filing deadline was extended from July 31, 2025 to September 15. With the implementation of next gen GST reforms from September 22, a section of taxpayers have raised the demand for further extension of ITR deadline. However, reports suggest that the ITR deadline is unlikely to be extended one more time.