Income Tax Return FY 2024-25: Avoid Late Fees & Penalties by Filing on Time

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by

Himanshu
in

📝 ITR Deadline 2025: Penalties & Late Fees Explained

Filing your Income Tax Return (ITR) on time is not just a legal obligation—it directly impacts your finances. The due date for filing returns for FY 2024-25 (AY 2025-26) has been extended, but taxpayers who miss it will face penalties and interest. Here’s a complete breakdown.

📅 ITR Filing Deadline for FY 2024-25

  • Original Due Date: 31 July 2025
  • Extended Due Date: 15 September 2025 (for non-audit cases such as salaried individuals and small businesses)
  • Audit Cases: Different timelines—usually 31 October or 30 November, depending on category

The government extended the date to 15 September 2025 to allow taxpayers time to file after changes in ITR forms and the e-filing portal. Officials have indicated this is likely the final extension.

⚠️ What Happens If You Miss the Deadline?

Late filing of your return under Section 234F and non-payment of tax on time attract two separate financial hits:

  1. Late Fee under Section 234F
    • If your total income is ₹5 lakh or less: Late fee up to ₹1,000
    • If your total income is more than ₹5 lakh: Late fee up to ₹5,000
  2. Interest on Unpaid Tax (Section 234A)
    • 1% per month on the outstanding tax from the due date until the tax is paid
  3. Other Implications
    • Refund delays
    • Difficulties in securing loans, visas or financial approvals
    • Carry-forward of certain losses may be disallowed if the return is late

💡 Penalty & Interest Table

Income LevelLate Fee (Section 234F)Interest (Section 234A)Other Effects
Up to ₹5 lakh₹1,0001% per month on unpaid taxRefund delay, loss of some benefits
Above ₹5 lakh₹5,0001% per month on unpaid taxRefund delay, loss of carry-forward losses
Audit Cases (late filing)Higher penalties depending on case1% per monthScrutiny notices possible

💳 Final Tax Payment Deadline

Even though the ITR filing date is extended, the last date to pay self-assessment tax without interest remains 31 July 2025. If you pay taxes after this date, interest will apply even if you file your return by 15 September.

📝 Why Filing Early Matters

  • Avoid portal rush and glitches close to the deadline
  • Ensure your refunds are processed faster
  • Minimise risk of mistakes due to hurried filing
  • Prevent penalties and interest accumulation

✅ Key Takeaways

  • The final ITR filing date for FY 2024-25 (AY 2025-26) is 15 September 2025 for non-audit cases.
  • Pay your self-assessment tax by 31 July 2025 to avoid interest.
  • Missing the deadline can cost you up to ₹5,000 in late fees plus 1% per month interest on unpaid taxes.
  • Refunds and loss carry-forwards may also be impacted.