What happens if you miss the July 31 ITR filing deadline?

In such cases, taxpayers are required to pay a late fee while submitting a belated return by December 31, 2026, and if you also have unpaid tax dues, then interest on the outstanding amount may apply.

Late ITR filing can attract a fee

The Income Tax Department's penalty schedule for AY 2026-27 states that taxpayers who file their ITR after the due date may have to pay a late filing fee of up to ₹5,000 under Section 234F. However, if the total income does not exceed ₹5 lakh, the late fee is capped at ₹1,000.

Who has to pay 1% interest for filing ITR late?

If tax remains outstanding and the return is filed after the due date, interest under Section 234A is levied. According to the Income Tax Department, "Interest under section 234A is levied for default in furnishing return of income. Interest is levied at the rate of 1% for every month or part of a month... on the amount of tax outstanding." The Department further states that such interest is charged "from the date immediately following the due date of filing the return up to the date of furnishing of the return."

Other consequences of not filing ITR

1. Tax and investment expert Balwant Jain said that "the Indian government has the authority to initiate legal action against salaried individuals who fail to file their ITR by December 31, 2026."

He explained, "Under current tax regulations, the minimum penalty can be 6 months of imprisonment, with a maximum term of up to 2 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."

2. You may lose the ability to carry forward certain losses if you miss the ITR filing deadline.

According to the income tax department, "Such loss can be carried forward only if the return of income/loss of the year in which loss is incurred is furnished on or before the due date of furnishing the return, as prescribed under section 139(1)." However, the Department also clarifies that, "Loss under the head 'Income from house property' can be carried forward even if the return of income/loss of the year in which loss is incurred is not furnished on or before the due date of furnishing the return, as prescribed under section 139(1)."

The tax department further states, "If the loss return... was filed belatedly and did not meet the conditions of section 139(3) read with section 80 of the Income Tax Act, 1961, the loss cannot be carried forward."

3. If a tax refund is due, filing your return after the due date may affect the interest payable on the refund.

Under Section 244A, the tax department states that where the return is furnished after the due date, interest is calculated "from the date of furnishing of return of income to the date on which the refund is granted." Further, the Department provides that, "If the proceedings resulting in the refund are delayed for reasons attributable to the assessee... the period of the delay so attributable to him shall be excluded from the period for which interest is payable."

ITR filing due date for AY 2026-27

For the majority of taxpayers, the ITR filing due date is 31st July. During the Union Budget 2026, the last date for individuals and businesses was split between 31st July and 31st August, respectively, to ease compliance.