Missed ITR Filing? Here’s The Penalty You’ll Pay And How To Fix It

Taxpayers beware: September 16, 2025, is the absolute last day to file your Income Tax Return (ITR) for Assessment Year 2025-26. The Ministry of Finance extended the deadline twice due to technical glitches and server issues, but today is your final chance.

The Income Tax Department posted on X (formerly Twitter): “The due date for filing of Income Tax Returns (ITRs) for AY 2025-26, originally due on 31st July 2025, was extended to 15th September 2025. The Central Board of Direct Taxes has decided to further extend the due date…to 16th September, 2025. The e-filing portal will remain in maintenance mode from 12:00 AM to 02:30 AM on 16th September 2025.”

What Happens If You Miss Today’s Deadline
Missing the final filing deadline can be costly. CA Gaurav Makhijani, Associate Partner & Head of Tax (North India & Gujarat) at Rödl & Partner India, explains: “If you miss filing your tax return on or before the due date (extended until today), several adverse consequences follow.”

Key consequences:
Late Fee: Rs. 1,000 if income < Rs. 5 lakh; Rs. 5,000 otherwise.
Loss of Carry-Forward Benefits: Losses cannot be set off against future income.
Interest Under Section 234A: 1% per month on outstanding tax until filing.
Restriction on Old Tax Regime: Cannot opt for old tax regime if late.

Common Last-Day Mistakes
Last-minute filing is risky. Makhijani warns of typical errors:
Wrong ITR Form: Choosing incorrectly can trigger defective return notices.
Mismatch with AIS/Form 26AS: Income details must match department records.
Bank Details Errors: Incorrect info delays refunds.
Computation Mistakes: Missing interest, dividends, or capital gains income.
Unverified Deductions: Ensure proofs are ready.
Skipping E-Verification: Returns not e-verified will not be processed.

Portal Glitches and Challenges
The portal often slows on the last day due to heavy traffic.
“Slow performance, especially in downloading AIS or making tax payments, has been a major challenge. If you are filing at the last minute, patience and repeated attempts are the only solution. One could try offline utility if online utility does not work at all,” says Makhijani.

Notices and Follow-Up
If the system flags mismatches, notices may be issued.
“Most notices seek clarification on mismatched data. Taxpayers usually have 15 days to correct errors. Genuine mistakes are acknowledged, and no penalty is imposed—only the correct tax demand is raised,” Makhijani added.

Take Action Now
With only hours left, taxpayers must act immediately. File early today, double-check all forms, reconcile AIS and Form 26AS, and complete e-verification to avoid penalties, interest, and lost tax benefits. The clock is ticking.

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