ITR Filing: Penalties, Late Fees & Interest For Missing The September 15 Deadline

The deadline for filing the personal tax returns for Financial Year (FY) 2024-25 (AY 2025-26) is just a week away. Every individual below 60 years of age, whose gross total income exceeds the basic exemption limit (Rs 2.5 lakh in case of the Old Tax Regime and Rs 3 lakh under the New Tax Regime) during the said FY, is obliged to file the tax return, as per the tax laws.

The basic exemption limit is Rs 3 lakh and Rs 5 lakh, respectively, for senior citizens and super senior citizens under the Old Tax Regime, and Rs 3 lakh under the New Tax Regime.

Besides crossing the threshold limit, there may be other conditions as well (for instance, if TDS has been deducted on any income, if someone has paid more than Rs 1 lakh during the year for electricity, or has spent more than Rs 2 lakh on foreign travel, among others) for filing the ITR.  

All taxpayers are required to file their tax returns before or till the ITR filing deadline, which is September 15 (unless extended) for FY2024-25. However, despite their best efforts, many people miss the deadline every year.

If you haven’t filed your tax return yet, you need to hurry as missing the September 15 deadline to file your income tax return doesn’t just mean a procedural delay—it can even hit your pocket. From interest charges on pending tax dues to late filing fees and even a slowdown in refunds, the consequences of missing the cut-off can quickly add up.

Here’s a breakdown of what taxpayers need to know if they miss this year’s ITR filing deadline:

Tax experts say missing the ITR filing deadline can have multiple financial implications. The Income Tax Act, 1961, specifies both monetary penalties and interest for delayed filing, which depend on when the return is eventually filed and the taxpayer’s total income.

Firstly, “under Section 234A, interest is charged on the tax unpaid by the original due date. This interest is 1 per cent per month or part of a month, until the date of actual payment. It is calculated on a simple interest basis, so the longer the delay, the higher the interest,” says Sudhir Kaushik, Co-founder & CEO, TaxSpanner.com (a Zaggle company).

Secondly, the late filing fees under Section 234F may apply. A penalty of up to 5,000 can be levied, depending on the total income of the taxpayer. For individuals whose total income is up to Rs 5 lakh, the late fee is Rs 1,000. For those with income exceeding Rs 5 lakh, the fee can go up to Rs 5,000.

Thirdly, delayed ITR filing can also impact tax refunds. “If a refund is due, it will be issued only after processing the belated return, which may take additional time. Moreover, missing the deadline can affect certain tax benefits, such as claiming losses under specific heads or setting off losses from previous years,” says Kaushik.

Also, “if the return is filed after the due date, the taxpayer will automatically fall under the New Tax Regime. In this case, the option to claim deductions and exemptions under the Old Regime is lost,” informs Sujit Bangar, Founder, Taxbuddy.com.

It’s also worth noting that habitual delay in filing can attract scrutiny from the Income Tax Department, including notices for non-compliance. While these are typically issued in extreme cases, the risk increases for taxpayers who consistently miss deadlines.

To summarise, missing the September 15 deadline is not just a procedural lapse—it can lead to late fees, interest, and potential administrative scrutiny. Taxpayers are advised to file even after the deadline to avoid compounding interest and to maintain compliance with the Income Tax Act. Filing promptly, even if taxes are paid late, can significantly reduce penalties.