Income Tax Return Filing Deadline: What Happens If You Delay In Filing ITR

Only 16 days are left to complete the income-tax return (ITR) filing exercise. It is important that you do it before the deadline, July 31, 2026, to avoid a last-minute rush when the income tax web portal experiences a slowdown and significant lag.

Besides, timely filing can save from penalty and interest, if there is any tax liability. It can further make taxpayers eligible to get a refund of tax deducted at source (TDS) or if tax was paid in excess.

According to the Income Tax Department, over 1.7 crore ITRs have been filed as of July 10, 2026. Last year, over 7.28 crore returns were filed. Considering this, more than 75 per cent of the returns are yet to be filed this year.    

The last date to file ITR this year is July 31. While the Income-tax Act, 2025 came into force on April 1, 2026, the old Income-tax Act, 1961 will continue to apply for income earned during the financial year 2025-26 (assessment year 2026-27).

What Happens If You Don’t File Your ITR On Time?

According to the Income Tax Act, “If an assessee who is required to furnish a return of income under section 139 fails to furnish return of income within due date as prescribed under section 139(1) then as per section 234F, he will be required to pay a fee of Rs 5,000 if the return has been furnished after the due date prescribed under section 139(1). However, it shall be Rs. 1,000 if the total income of an assessee does not exceed Rs 5 lakh.”

The penalty for delay applies to all late filers, but if there is a tax liability, then one is required to pay interest on the late payment of tax as well.

CA Ashish Niraj, Partner, A S N & Company, Chartered Accountants, explains, “If you don’t file a return on time, then as per section 234F, a Rs 5000 Penalty will be imposed if taxable income is above Rs 5 lakh. If the taxable income is below Rs 5 lakh, then the section 234F penalty is Rs 1000. Also, interest payment at a rate of 1 per cent per month will be applicable under section 234A.”

Note that the penalty is calculated from the due date of filing, whether it is July 31 or some other date, if extended by the income tax department. Under Section 234A, the one per cent interest per month is levied. This is a simple interest, and even if the delay is only for part of a month, it is considered a full month for the purpose of calculating the interest.

The Income-tax Act, 1961, states, “Under section 234A, interest is levied for delay in filing the return of income, filing of an updated return or filing of a return in response to the notice issued under section 142(1).”

However, in some cases, delayed tax payment does not end with a penalty and interest payment. It could result in imprisonment.    

Niraj says, “If you don’t file a return and tax sought to be evaded exceeds Rs 25 lakh, then as per section 276CC, imprisonment may range from 6 months to 7 years with fine.”

Why Should You Not Miss Filing Your ITR Before The Deadline?

Timely ITR filing can entail several benefits, such as a tax refund, which can be claimed only if the return is filed before the deadline.

“By filing ITR on time, you can carry forward your losses from eligible transactions such as business loss, capital loss, etc. Although the new tax regime is the default regime, if you file your return on time, you can opt for the old regime if it’s beneficial for you. The old regime can’t be opted for belated returns filed after the due date of ITR filing. Also, various financial institutions ask for an ITR for a loan, etc. So, up-to-date filing helps you provide these documents,” says Niraj.

In addition to this, delayed filing of ITR can lead to notices from the tax department, causing stress.