Know What Happens If You Do Not File Your Income Tax Return By September 15

Missing the July 31 deadline for filing Income Tax Returns (ITR), even when the government announces an extension to September 15, typically doesn't carry the same implications as missing a hard deadline. If the Central Board of Direct Taxes (CBDT) has officially extended the due date, then the new date becomes the legally accepted deadline. In such cases, returns filed up to September 15 will be treated as filed within time, and there will be no consequences associated with the original July 31 deadline, such as loss of carry-forward benefits or interest penalties for late filing, provided taxes are paid on time.

“If the deadline has officially been extended to September 15 by a CBDT notification, taxpayers filing their ITR between August 1 and September 15 will not be treated as late filers. This means they will not face any late filing fees under Section 234F of the Income Tax Act, nor will there be penal interest for delay under Section 234A, so long as the self-assessment tax, if applicable, has been discharged within time. Penalties are only applicable if the return is filed after the notified extended date, not after the original July 31 date, in such cases,” says Amit Bansal, partner, Singhania & Co.

The extension of the ITR deadline typically benefits taxpayers who face difficulties in timely compliance, including salaried individuals, small businesses, professionals, and taxpayers in regions affected by natural calamities or technical glitches on the e-filing portal. “However, such extensions may not always apply to all types of taxpayers, especially those whose returns are subject to audit or transfer pricing provisions, which have separate deadlines. It is important to refer to the specific CBDT circular or notification to confirm whether the extension applies universally or to specific categories only,” says Bansal. 

Interest Under Section 234A Will Be Applicable If The ITR Is Filed After 15th September 2025

“For FY 2024-25 only, the interest provisions under Section 234A will be applicable if the ITR has been filed after 15th September 2025. This means that if a taxpayer files the ITR after 15th September 2025, interest under Section 234A will be applicable @ one per cent per month or part from Sep 25 until when ITR is filed,” says Vivek Jalan, partner, Tax Connect Advisory Services. This means interest will be levied at one per cent per month or part of a month for the amount of tax outstanding. The interest that needs to be paid is simple.