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Missing ITR deadline: What salaried individuals risk losing

Upstox
By Upstox News Desk

2 min read | Updated on September 14, 2025, 07:55 IST

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SUMMARY

If you miss the due date, you might end up with a higher tax liability and may even lose out on refunds. Moreover, there are many penalties attached to filing a belated return after the deadline, so taxpayers must file before the September 15 deadline.

ITR deadline impact, late tax filing penalty

Even if you have paid all the taxes and interests, and no refund is due, you still need to file an ITR.

Salaried individuals, whose accounts don’t need auditing, must file their income tax returns before September 15 this year because missing the due date can cost them big. Let’s understand how. 
If you fail to file your ITR within the deadline, you won’t be able to change your tax regime while filing a belated return after September 15. As a salaried employee, you fall under the non-business category, and for that, the IT department allows you to choose the relevant tax regime every year while filing ITR, but it can only be done on or before the due date. 

“In case of ‘non-business cases’, the option to choose the regime can be exercised every year directly in the ITR to be filed on or before the due date specified under section 139(1),” says the IT department in its FAQs on New vs Old Tax Regime. 

So if you miss the due date, you might end up with a higher tax liability and may even lose out on refunds. Further, there are many penalties attached to filing a belated return after the deadline: 
  • If your annual income is above ₹5 lakh, you will have to pay a penalty of ₹5,000
  • The penalty would be ₹1,000 if your income is below ₹5 lakh.
  • A 1% charge on unpaid tax would be applicable per month (or part thereof)
  • If you fail to pay taxes, you can face rigorous imprisonment from 3 months to 2 years. In case the unpaid tax liability is above ₹25 lakh (not always possible for salaried individuals), you can face up to 6 months to 7 years imprisonment.
Even if you have paid all the taxes and interests, and no refund is due, you still need to file an ITR. Your taxes are only recognised officially after you file your return. ITR filing is mandatory for every individual whose income exceeds the maximum exemption limit (before exemptions and deductions). 
If ITR filing is not mandatory for you, it’s advisable to still file the return, as your ITR acts as income proof and can be essential while applying for loans or visas. It is also needed to claim refunds and carry forward losses. So file your return before September 15 and get your tax affairs in order. 
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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.