Taxpayers who missed the original deadline to file their Income Tax Return (ITR) for financial year 2024-25 still have time. Authorities have confirmed that a belated return may be filed until 31 December 2025, though with penalties and certain restrictions.
According to the Income Tax Department, individuals filing after the initial cut-off must do so under Section 139(4) of the Income Tax Act.
What is a Belated Return?
A belated return is an ITR filed after the due date under Section 139(1). The belated option is designed to ensure compliance while still imposing costs for delay. Tax consultants emphasise that this provision should not be mistaken for an extension.
“Filing late attracts both fees and interest,” said Shalini Gupta, a chartered accountant in New Delhi. “While the government allows a grace window, taxpayers lose certain privileges, such as carrying forward business losses.”
Penalties and Interest
Late filing involves specific penalties.
- Fee under Section 234F:
- ₹1,000 if taxable income does not exceed ₹5 lakh.
- ₹5,000 if income exceeds ₹5 lakh.
- Interest under Section 234A:
- Calculated at 1 percent per month on the outstanding tax liability, starting from the day after the original due date.
The Central Board of Direct Taxes (CBDT) has repeatedly urged citizens to avoid late filing, warning that refunds will also be delayed in belated cases.
Impact on Taxpayer Benefits
Missing the deadline also restricts eligibility for certain benefits. Business or capital losses cannot be carried forward if the return is filed late. Only house property losses remain eligible.
Refund claims, while permitted, are often processed more slowly for belated returns. Experts caution that taxpayers may also face closer scrutiny from assessment officers.
“Taxpayers should remember that filing late is better than not filing at all, but there is a cost,” explained Rajiv Mehra, partner at a Mumbai-based tax advisory firm.
How to File a Belated Return
Filing a belated return requires the same process as a regular ITR, but with specific selections on the online portal.
- Log into the Income Tax e-filing portal with PAN credentials.
- Select the correct ITR form based on income type.
- Choose “Return filed under Section 139(4)” in the filing options.
- Provide all income, deduction, and tax payment details.
- Pay applicable late fees and interest before submission.
- Complete e-verification using Aadhaar OTP, net banking, or bank account validation.
Consequences of Missing December 31 Deadline
Failure to file even a belated return by the last date carries severe consequences. Taxpayers may receive notices, face prosecution in extreme cases, and permanently lose the right to carry forward most losses.
According to the Income Tax Act, non-filers may be liable for penalty proceedings, though such measures are usually reserved for high-value cases.
Concluding Note
The belated return option until 31 December 2025 offers relief for individuals who missed the original filing deadline. However, experts stress that the process should be used as an exception rather than routine practice. Timely filing remains the best way to avoid penalties, safeguard benefits, and ensure faster refunds.
