ITR deadline 2025: Why you shouldn’t delay your income tax return filing

The due date for income tax return (ITR) filing for FY 2024-25 is still a month away, but taxpayers should not wait for the last moment to finish this important financial task in order to avoid late fees or penalties.

Usually, this deadline is July 31, but this year, taxpayers got 45 additional days to file their ITR as changes in the income tax slabs under the new tax regime and capital gains rules have made the ITR filing process little complicated. Hence, the Income Tax Department has extended the due date to file ITR to September 15

What happens if you miss September 15 deadline

Tax and investment expert Balwant Jain said, "If an earning individual fails to file their ITR by the due date, they can still do so by paying a late fee. The fee will be ₹5,000 for annual taxable income of ₹5 lakh or more, while for taxable income below ₹5 lakh, the fee will be ₹1,000."

Jain highlighted that the Indian government has the authority to initiate legal action against salaried individuals who fail to file their ITR by December 31, 2025.

He explained, "Under current tax regulations, the minimum penalty can be 6 months of imprisonment, with a maximum term of up to 7 years. However, prosecution is not automatic in every case of missed filing. It is only triggered if the amount of tax sought to be evaded exceeds ₹10,000."

Anyone in the following categories is required to file an income tax return for the tax year before the due date:

⦁ Individuals need to file if their total income, or the income of someone they are responsible for, exceeds the basic exemption limit set by the government.

⦁ Companies and firms must always file their returns.

⦁ Individuals with business or capital gains losses who want to carry forward those losses for future tax benefits must file a return.

⦁ Residents with foreign assets.

⦁ Residents who are beneficiaries of foreign assets must file a return as well.