The late fee, interest and lost carry-forward benefits that follow a missed ITR deadline — and the belated-return window that still remains.

By Kanoons · 3 min read · Last verified 2025-10-05

Missing the ITR due date triggers a late fee under section 234F — ₹5,000 if total income exceeds ₹5 lakh, capped at ₹1,000 below that threshold, with no fee at all if income falls below the basic taxable limit (though a return may still be required for other reasons, such as foreign income). Any unpaid tax also starts accruing interest under section 234A at 1% per month or part-month from the day after the due date until payment.

The less obvious cost is losing the ability to carry forward business and capital losses to future years unless the return is filed on or before the due date — a rule that can matter more than the late fee itself for anyone with stock-market losses or business losses to offset against future income. Refunds due to the taxpayer are also processed more slowly once a return is filed late, and in genuinely serious cases involving deliberate evasion or large unreported income, prosecution with fines and possible imprisonment remains on the table.

A belated return can still be filed up to 31 December, carrying all the penalties above but preserving the ability to at least get the filing done — better than not filing at all, though every day of additional delay adds to the interest owed. Anyone with a complicated return (capital losses, foreign income, multiple income heads) is better served getting it filed well before the original due date rather than relying on the belated window as a fallback.