The last date for filing the Income Tax Return (ITR) has been extended from 31 July to 15 September 2025. But if you miss this new deadline, you may have to face serious problems. Let us know the 5 big disadvantages of not filing ITR on time.
5 Big Disadvantages of Not Filing ITR on Time
If you do not file ITR by the due date, you may have to pay a late fee of up to ₹5,000. For taxpayers with taxable income less than ₹5 lakh, the fee can be up to ₹1,000. If you have any tax due, you will also have to pay interest at 1% per month from the day after the due date until you file the ITR.
If you have a business loss or capital loss, you cannot carry it forward to the next years if you file ITR late. The only loss that can be carried forward in such a case is a house property loss. If you do not file ITR even when your income is taxable, the Income Tax Department can charge a penalty of up to 50% of the tax amount you tried to hide.
The most serious problem is that the Income Tax Department can take legal action against defaulters. Jail time can be from 3 months to 2 years. If the tax evaded is more than ₹25 lakh, the jail term can be from 6 months to 7 years.
There are also some common frauds in ITR that can cause trouble. These include showing fake rent receipts to claim HRA, using the same or wrong PAN to get benefits, submitting fake medical bills to claim deduction under section 80D, giving fake investment receipts to claim deduction under section 80C, and misusing the tax exemption on donations under section 80G. The Income Tax Department has now become very strict and keeps a close watch on such cases.