Forgot to file ITR this year? Here's what comes next
What's the story
The deadline for filing Income Tax Returns (ITRs) for FY 2024-25 has passed. If you missed it, you can file a belated return by December 31, 2025. However, this comes with penalties under Section 234F of the Income Tax Act. The penalty is ₹5,000 if your income exceeds ₹5 lakh and up to ₹1,000 if it's less than that.
Additional penalties
If you have tax dues, interest may be levied
If you have tax dues, interest at 1% per month under Section 234A may be levied. If you don't file your ITR at all this year, the Income Tax Department will estimate your income from bank transactions, TDS, AIS, and SIS reports. In case of a mismatch, a notice may be sent. You will also lose the right to file an ITR or even a belated one after December 31.
Serious repercussions
Prosecution is also possible in extreme cases
If the department finds your undeclared income, you could face penalties of 100% to 300%. In extreme cases, prosecution action is also possible. Not filing an ITR affects your financial record credibility as it is considered a reliable document in bank loans, visa applications, or investment processes. If you missed this year's ITR filing, don't panic but act promptly to avoid future complications.