Missing September 15 ITR Deadline May Prove Costly For Taxpayers

With just two days left before the September 15 Income Tax Return (ITR) filing deadline, individuals and businesses are rushing to complete submissions. Hopes for another extension have been dismissed by the Income Tax Department, which confirmed no further relief. Taxpayers must complete e-filing on the official portal to avoid hefty penalties, interest charges, delayed refunds, and higher chances of scrutiny.

The Income Tax Act sets out clear consequences for delay. Under Section 234F, taxpayers earning above ₹5 lakh will face a late fee of ₹5,000, while those below ₹5 lakh will pay ₹1,000. In addition, Sections 234A, 234B, and 234C impose 1% monthly interest on any unpaid tax until full settlement. Filing after the deadline also restricts critical benefits such as carrying forward of losses from business, capital gains, or deductions under sections like 80-IA and 80-IB.

Experts caution that late filing not only postpones refunds but also increases the risk of receiving official notices for mismatches or missed income disclosures. Complete non-filing, even after the December 31 belated ITR deadline, can attract stricter action including prosecution and imprisonment if substantial tax liabilities are unpaid.

Tax professionals strongly advise taxpayers to act promptly, using pre-filled forms and Aadhaar OTP verification on the portal to simplify and avoid end-moment technical hurdles.