What You’ll Face If You Miss the Deadline

1. Late Fee Under Section 234F
   • If your total income is above ₹5 lakh, you’ll incur a fee of ₹5,000.
   • If your total income is below ₹5 lakh, the penalty is capped at ₹1,000.
   • If your income is below the taxable threshold, there’s typically no penalty for fees — though you might still need to file for other reasons (like foreign income).
2. Interest on Unpaid Tax (Section 234A)
   If there is tax due (i.e. not paid), missing the deadline means you’ll owe 1% interest per month (or part of a month) on the unpaid tax amount.
3. Loss of Carry-Forward Benefits
   If you have business losses, capital losses (for example from stock market trading), these cannot be carried forward unless ITR is filed before the due date. This could impact your tax liability in future years.
4. Delayed Refunds
   Even when you are due a refund, filing late slows processing. What might have been credited quickly if you filed on time may take months longer.
5. Possible Prosecution in Serious Cases
   This is rare, but when there’s deliberate evasion, black income, fraud, or large unreported income, the Income Tax Department has the power to prosecute. Penalties here can include jail terms (typically 3 months to 2 years) in addition to fines.

Good News: Belated Returns Allowed

• Even after 15 September, you can file a belated return up to 31 December 2025. However, expect all the above penalties (fees, loss of carry-forward, interest) to apply.
• Chronic late filers may attract more scrutiny from tax authorities in the future.

Why Filing On Time Is Better

• Avoid unnecessary penalties and interest.
• Secure carry-forward benefits for losses, which can reduce future tax burden.
• Get your refunds processed timely.
• Stay compliant and avoid risks of legal trouble or audit.