*ITR deadline extension not coming? What late filers could lose this year – BusinessToday

Clipped from: https://www.businesstoday.in/personal-finance/tax/story/itr-deadline-extension-not-coming-what-late-filers-could-lose-this-year-493913-2025-09-14

One major hit that often goes unnoticed is the loss of carry-forward benefits. If you’ve suffered business or capital losses in FY25 and don’t file your return on time, you forfeit the right to use those losses to offset future gains.

While a belated return can still be filed until December 31, 2025, it comes with the full package of penalties and restrictions.

With just hours left before the September 15 ITR deadline, taxpayers risk steep fines, interest charges, and even prosecution if they miss the cut-off.

As the clock runs down on the Income Tax Return (ITR) filing deadline for Assessment Year 2025–26, the consequences of missing it are stacking up. While many still believe they can file late without much hassle, the Income Tax Department’s penalties tell a different story.

Under Section 234F, late filers face a penalty of ₹5,000 if their total income exceeds ₹5 lakh. For those earning below ₹5 lakh, the fee is capped at ₹1,000. However, individuals with no taxable income might still be required to file — for instance, if they have foreign assets — and could face other repercussions.

It doesn’t stop there. If tax is still due, Section 234A mandates a 1% interest per month on the outstanding amount — adding a compounding burden on top of the fixed fee.

One major hit that often goes unnoticed is the loss of carry-forward benefits. If you’ve suffered business or capital losses in FY25 and don’t file your return on time, you forfeit the right to use those losses to offset future gains.

Refund delays are another hidden cost. Returns filed after the deadline typically face longer processing times, slowing down the payout for taxpayers expecting money back.

In rare but serious cases, chronic non-filers or those suspected of tax evasion can face prosecution, including jail terms ranging from three months to two years, depending on the severity and intent.

While a belated return can still be filed until December 31, 2025, it comes with the full package of penalties and restrictions.

Hopes of a deadline extension remain slim. Despite past glitches in the filing portal and the ongoing GST transition, government officials have indicated that a date shift is unlikely unless a major technical breakdown occurs.