ITR filing: Here’s what you stand to lose if you miss the 15 September deadline

ITR filing: The deadline to file your income tax return (ITR) is 15 September, and failing to do so can have serious consequences. The ITR filing deadline has traditionally been 31 July, but it's often extended at the last minute owing to technical glitches in the e-filing portal. This year, the I-T department extended the deadline to 15 September back in May and the government hasn’t announced a further extension so far.

If you haven't filed your ITR yet, missing the deadline won't just attract a penalty, it could have other repercussions too. Here’s the breakdown:

What happens if you don't file your ITR on time

Penalties

Under section 234F of the Income Tax Act, taxpayers must pay a late‐filing penalty if they fail to file their ITR on time. The amount depends on the person's total income and the time of filing, said Shefali Mundra, a tax expert at ClearTax.

For the assessment years 2025‐26 and 2024-25, taxpayers with an income of ₹5 lakh and less will have to pay a ₹1,000 penalty if they miss the due date but pay before 31 December. For people with an income or more than ₹5 lakh, the penalty is ₹5,000 under the same conditions.

“However, there is no late filing fee if your income is below the basic exemption limit, since its non‐taxable income. This varies by situation as certain requirements (such as foreign assets) might require you to file an ITR even if your income is small,” Mundra said.

Interest on unpaid tax

In case a person fails to clear their tax liability, either because they filed late or did not pay the required advance tax, interest is levied under various sections. It is important to note when assessing the penalty, fractions of a month count as a full month.

Loss of refund interest

“Loss of refund interest is the interest you could have received had you filed your ITR on time minus the interest you actually received when you filed late," Mundra said.

For example, if the refund due is ₹50,000 and you filed it on time, then the interest you received for April-December will be ₹2,250 (at a rate of 0.5% per month) under Section 244A. But if you file late late, say in October, the interest receive for October-December will be ₹500, which is a loss of ₹1,750.

Inability to carry forward certain losses

If a taxpayer files their ITR on time, they are allowed to carry forward all their losses. However, if they miss the deadline, they won't be able to carry forward certain losses, such as business or capital loss in many cases, Mundra said.

What to do if you miss the deadline

If you fail to file your ITR by 15 September, you can take certain steps to minimise your losses and improve your financial standing.

“You must prepare and submit a belated return as soon as possible (before 31 December of the assessment year) as doing so limits how many extra months you lose for refund interest, and keeps your record cleaner,” Mundra said.

In case of regular ITR filing, the interest starts from 1 April so you receive more interest. However, in the case of a belated filing (before 31 December), interest begins only from date of filing so you end up losing months of interest, Mundra added.

Also, make your you e-verify the return as soon as you file it. Returns must be verified within a certain time, and delays can make them invalid, she warned.

Finally, maintain proper records and store documents that will help you support any claims, deductions, proofs, etc. This can help avoid delays, notices, or rejection of refunds.