Missing the ITR filing deadline in India can lead to serious financial and legal consequences. Whether you’re a salaried employee, freelancer, or business owner, timely income tax return filing is not just a duty—it’s essential to avoid penalties and preserve your financial credibility. Let’s explore what really happens when you don’t file your ITR on time.
Penalty and Late Filing Fees:
Missing the ITR filing deadline attracts a late filing fee under Section 234F of the Income Tax Act. If you file your income tax return after the deadline but before December 31st of the same assessment year, you’ll need to pay:
- ₹5,000 as a late fee (if your total income exceeds ₹5 lakh)
- ₹1,000 if your total income is below ₹5 lakh
Moreover, interest under Section 234A will be applicable if there’s any unpaid tax liability. This is charged at 1% per month (or part thereof) from the due date until the return is filed.
Loss of Refund and Carry Forward Benefits:
Another major downside of late ITR filing is missing out on income tax refunds. If excess TDS has been deducted, a delay in filing could postpone your refund significantly.
Additionally, if you have business losses, capital losses, or losses from house property, you must file your ITR on time to carry them forward. Missing the deadline means you forfeit the right to carry forward most of these losses to future years, which can impact your financial planning.
Scrutiny Risks and Legal Consequences:
Filing your return late may increase the chances of your return being scrutinised by the Income Tax Department. The government’s digital systems can easily flag delayed filings, especially if you have high-value transactions, such as large bank deposits or property purchases.
In extreme cases, non-filing may be treated as willful concealment of income, which can result in prosecution under the Income Tax Act, with penalties and possible imprisonment of up to one year (in cases of tax evasion over ₹25 lakh).
Alternatives and What You Can Do Now:
Even if you’ve missed the ITR filing deadline, you can still file a belated return under Section 139(4). This can be done until 31st December of the assessment year. However, late filing fees and interest will still apply. If you realise an error after filing, you can submit a revised return under Section 139(5). Belated and revised returns both share the same deadline.
Conclusion:
Missing the ITR filing deadline can cost you in more ways than one—money, refunds, and peace of mind. However, all is not lost. By filing a belated return and staying informed, you can still stay on the right side of the law. Ready to stay on top of your taxes? Explore more financial insights now!
– Ketaki Dandekar (Team Arthology)
Read more about Missing ITR Filing Deadline here – https://www.financialexpress.com/miss-itr-deadline