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Can you lose your Income Tax refund if filing after the due date?

Upstox
By Upstox News Desk

2 min read | Updated on September 14, 2025, 07:56 IST

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SUMMARY

As the deadline approaches, refund processing will be delayed even further as the IT department receives many filings near the due date.

income tax refund rules, late ITR filing refund

Waiting for the last moment to file ITR can cause delays in refund processing.

If you file a belated income tax return (ITR) after the due date, you can still claim an income tax refund. However, refunds can’t be claimed by filing an updated return (ITR-U).

Belated returns for FY 2024-25 (AY 2025-26) can be filed until December 31, 2025.

Further, after the original due date (September 15), individuals, including salaried taxpayers, can’t change their tax regime. This means that if you file a belated return, you won’t be able to switch tax regimes, which may lead to a higher tax liability and lower your refunds.
Belated returns also attract penalties and fees, and you can miss out on benefits like carrying forward losses or claiming certain deductions.
Note: If there are any earlier tax dues or pending demands against your PAN, your tax liability could be adjusted with the refund.

How to avoid refund delay

To avoid delay in income tax refund processing, you can do these things:

  • File ITR as soon as possible
  • Double-check information
  • E-verify within 30 days of filing the return
  • Register and verify your bank account
  • Make sure your PAN isn’t inoperative

ITR filing for AY 2025-26

Nearly 6 crore ITRs have been filed for the assessment year 2025-26 (AY26). However, around 8 crore taxpayers are expected to file ITR this year, which means that 2 crore ITRs are yet to be filed.

The IT department has been advising taxpayers to file their ITR as soon as they can, as waiting for the last moment can cause delays in refund processing. Not just this, if you miss the due date, you can lose out on your tax refund as well.

As the deadline approaches, refund processing will be delayed even further as the IT department receives many filings near the due date. Moreover, the e-filing portal might also work more slowly near the deadline. So file your ITR and ensure you’re reporting everything correctly to avoid penalties or IT notices.
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About The Author

Upstox
Upstox News Desk is a team of journalists who passionately cover stock markets, economy, commodities, latest business trends, and personal finance.