Missed the September 15 ITR Deadline? Know the Rules for Filing Belated or Updated Returns

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Indiaemploymentnews
Mon Sep 15 19:34:41 IST 2025
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The extended deadline for filing Income Tax Returns (ITR) for FY 2024–25 (AY 2025–26) ended on September 15, 2025. While most taxpayers managed to submit their returns, many either faced issues with the ITR portal—such as slow loading, difficulty accessing the Annual Information Statement (AIS) and Form 26AS—or simply missed the date. If you are one of them, don’t panic. You still have options, but they come with penalties, interest, and certain restrictions.

Original vs Extended Deadlines

  • July 31, 2025: Original deadline for individual taxpayers.

  • September 15, 2025: Extended deadline granted this year.

  • December 31, 2025: Last date to file a belated or revised return.

  • March 31, 2030: Final date to file an updated return under the special provision introduced in 2022.

Filing a Belated Return

If you missed the September 15 deadline, you can still file a belated return until December 31, 2025. However, this comes with additional costs:

  • A penalty of ₹5,000 for taxpayers with annual income above ₹5 lakh.

  • A reduced penalty of ₹1,000 for taxpayers with income up to ₹5 lakh.

    • Along with penalties, you may also lose some important tax benefits.

    Consequences of Missing the Deadline

  • No Carry Forward of Losses
    If you incurred losses from stocks, mutual funds, or property sales, you cannot carry them forward to offset future gains.

  • Loss of Deductions Under Old Tax Regime
    Taxpayers opting for the old regime will miss out on several exemptions and deductions if the return is filed late.

  • Interest on Pending Taxes
    As per Section 234A, interest at 1% per month will be levied on unpaid taxes until they are cleared.

  • Loan and Refund Delays
    Late filing could also delay refund processing and create hurdles when applying for home loans, car loans, or personal loans, as lenders require past ITR records.

    • Option of an Updated Return

    If you also miss the belated return deadline, you can still file an updated return—a provision introduced in 2022. It allows taxpayers to declare missed income and pay due taxes within 48 months

    from the end of the relevant assessment year.

    Key conditions:

    • You cannot claim additional losses or refunds.

    • You cannot reduce your tax liability.

    • Once filed, the updated return cannot be revised.

    Additional Tax Burden for Updated Returns

    Filing an updated return is costlier than a belated return. Depending on the delay, you must pay an additional percentage of tax on top of your liability:

    • Within 12 months: Extra 25% tax.

    • Within 24 months: Extra 50% tax.

    • Within 36 months: Extra 60% tax.

    • Within 48 months: Extra 70% tax.

    This system was designed to encourage voluntary disclosure but ensures defaulters pay a significant penalty.

    Final Takeaway

    Missing the September 15 ITR deadline is not the end of the road. You still have the option to file a belated return by December 31, 2025, or an updated return until March 31, 2030. However, each delay increases the financial burden through penalties, interest, and loss of benefits. Experts strongly advise taxpayers to file on time to avoid unnecessary costs and complications.

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