ITR Filing Deadline Will Not Be Extended: Know Penalties, Late Fees, and Interest Rules for AY 2025–26

The final deadline for filing Income Tax Returns (ITR) for Assessment Year 2025–26 is here. Taxpayers who are not subject to audit—such as individual taxpayers, Hindu Undivided Families (HUFs), and small businesses filing ITR forms 1 to 4—must file their returns by September 15, 2025.

Despite repeated requests from taxpayers, the Central Board of Direct Taxes (CBDT) has clarified that there will be no further extension. Earlier, on May 27, 2025, the due date was extended from July 31 to September 15. Now, taxpayers have only one day left to comply.

Who Must File by September 15?

The September 15 deadline applies to taxpayers who do not require a statutory audit. This includes:

• Salaried individuals

• Hindu Undivided Families (HUFs)

• Small businesses and professionals not covered under audit provisions

If you fall into any of these categories and have not yet filed your ITR, it is critical to complete the process immediately.

The Filing Process

Filing an ITR is now fully online through the Income Tax Department’s e-filing portal. Here’s how the process works:

Login: Use your PAN as the User ID along with your password.

Select Assessment Year: Choose AY 2025–26.

Choose Filing Status and ITR Form: Select the correct ITR form depending on your income category.

Fill and Review Details: Enter income, deductions, and tax payments. Double-check all details to avoid discrepancies.

Pay Any Pending Tax: If any balance tax is due, it must be paid before submission.

Submit Return: Once complete, submit the return through the portal.

⚠️ Important: Filing is not complete until you e-verify your return within 30 days. Failure to verify makes the return invalid, refunds may get blocked, and penalties could apply.

What Happens If You Miss the Deadline?

Missing the September 15 deadline will result in penalties under Section 234F of the Income Tax Act:

• ₹5,000 Penalty: For taxpayers with annual income above ₹5 lakh.

• ₹1,000 Penalty: For taxpayers with annual income up to ₹5 lakh.

Additionally, taxpayers can still file a belated or revised return until December 31, 2025. After that, an updated return (ITR-U) can be filed until March 31, 2030, but this comes with additional tax liability and penalties.

Will Interest Also Be Charged?

Yes. Apart from late fees, interest is also applicable if tax dues remain unpaid:

• Section 234A: Interest at the rate of 1% per month (or part of a month) will apply from September 16, 2025, until the actual filing date.

This means that even a short delay can add up to a substantial interest burden, especially for taxpayers with higher liabilities.

Filing Trends So Far

According to official data, around 6 crore taxpayers have already filed their returns for AY 2025–26. Last year, this number stood at 7.28 crore, meaning roughly 1.28 crore fewer returns have been filed so far this year.

In the previous year, while 5.34 crore returns were processed smoothly, nearly 2 crore taxpayers received notices due to incomplete or incorrect information. This highlights the importance of filing accurately and on time.

Final Takeaway

The Income Tax Department has made it clear: September 15, 2025, is the final deadline for non-audit taxpayers, with no further extension. Missing the due date will not only attract late filing penalties but can also lead to additional interest charges on outstanding tax.

If you haven’t filed yet, log in to the tax portal, gather your documents, and complete the process without delay. Filing on time not only saves money but also avoids unnecessary legal and financial complications.