4.9 crore ITRs filed. Know the cost of not filing Income Tax Return by September 15

Nearly 4.9 crore (precisely 4,89,23,231) ITRs have already been filed for the assessment year 2025-26 (AY26), as of September 7, 2025, according to Income Tax Department data.

From this, nearly 4.6 crore ITRs have been verified, and over 3.3 crore ITRs have been processed by the IT department.

Why is ITR filing mandatory?

ITR filing is mandatory even if all the taxes and interests have been paid and there is no refund due. The tax you paid is officially recognised only after you file and verify your total income and tax liability. The government will only accept the tax you paid after you confirm the details. If you don’t file ITR, the process remains incomplete and can invite penalties.

Return filing is mandatory for every individual whose income (before exemptions and deductions) exceeds the maximum exemption limit. Even when the advance taxes have been paid, the taxes need to be reported to complete the self-assessment of income and taxes. This remains the same if you have no positive income and have sustained a loss in the financial year.

What will be the penalty if you don’t file ITR?

Further, non-payment of tax attracts interest, penalty and prosecution. In case you fail to pay your tax liability, you can face rigorous imprisonment from 3 months to 2 years. If the evaded tax amount exceeds ₹25 lakh, the punishment could be 6 months to 7 years.