Taxpayers filing returns after the due date may have to pay a late fee, interest and face other consequences.
Key Highlights
- The ITR filing deadline for most individual taxpayers is July 31, 2026.
- Belated returns can be filed until December 31, 2026 with a late filing fee.
- A late fee of ₹5,000 applies for income above ₹5 lakh, while ₹1,000 applies for income up to ₹5 lakh.
- Taxpayers with unpaid tax dues may have to pay 1% monthly interest under Section 234A.
- Continued non-compliance after tax notices may lead to prosecution in certain cases.
New Delhi: The deadline for filing Income Tax Returns (ITRs) for most individual taxpayers for the financial year 2025-26 is July 31, 2026. Taxpayers who miss the due date can still file a belated return by December 31, 2026, but may have to pay penalties and interest depending on their tax liability.
Under Section 234F of the Income-tax Act, taxpayers filing a belated return must pay a late filing fee. Individuals with total income above ₹5 lakh will have to pay a penalty of ₹5,000, while those with income up to ₹5 lakh will pay ₹1,000.
Apart from the late fee, taxpayers with unpaid tax liabilities may also have to pay interest under Section 234A. The law provides for simple interest at 1% per month or part of a month on the outstanding tax amount, calculated from the original due date until the return is filed.
However, the interest provision applies only when there is unpaid tax outstanding. Taxpayers who have already paid their full tax liability generally do not attract interest under Section 234A, even if they file the return after the deadline.
The Income Tax Department has also warned that continued non-compliance may have legal consequences. If a taxpayer deliberately fails to file an income tax return despite receiving notices from the tax authorities, prosecution proceedings may be initiated under the provisions of the Income-tax Act.
Tax experts advise eligible taxpayers to file their returns before the July 31 deadline to avoid additional costs and potential legal complications.
