What will happen if you don't file your ITR by August 31st? Learn about the new rules, from fines to refunds
The deadline for filing income tax returns for assessment year 2026-27 has passed on August 31. However, taxpayers can still easily file their belated returns by December 31 by paying a late fee.
RJ Kesari News Desk: The August 31st deadline for filing Income Tax Returns (ITRs) for assessment year 2026-27 has now passed. Often, due to hectic lifestyles or technical difficulties, people are unable to file their returns on time.
Missing the deadline often leads to concerns about the significant loss they will incur.
However, the Income Tax Department has opened some avenues for relief for such individuals. If you too haven't filed your ITR on time, there's no need to panic. You can still file your return within the established rules.
Belated ITR will provide great relief
If you missed filing your return by August 31st, you have the option of filing a belated ITR. You can file it until December 31st, 2026.
According to Mihir Tanna, Associate Director at S.K. Patodia LLP, filing a belated ITR may result in a late fee and interest on the outstanding tax.
It's important to note that if the Income Tax Department completes your assessment before December 31st, you won't be able to file your return after that date.
Full account of penalty loss
The impact of filing a belated return on your pocket depends on your income. If your total annual income is less than Rs 5 lakh, you will have to pay a late fee of Rs 1,000.
However, if your income exceeds Rs 5 lakh, this late fee can be up to Rs 5,000. Furthermore, if you have any tax dues, interest will be charged at the rate of 1% per month. The consequences are not limited to penalties.
If you miss the deadline, you will not be able to carry forward your business or capital losses to subsequent years.
The biggest setback is that you will have to file your return under the new tax regime, which will eliminate the tax deductions available under the old regime. However, the relief is that you can still claim your tax refund through a belated ITR, though it may take a little longer.
Correct your mistake with a revised return
Sometimes, while filing a return in a hurry, important information is left out. In such cases, the Income Tax Department offers the option of a revised ITR. For assessment year 2026-27, you can file your revised return until March 31, 2027.
If you file it by December 31, 2026, it's fine, but filing after that will incur an additional fee. This fee is ₹1,000 for income up to ₹5 lakh, while for income above ₹5 lakh, you may have to pay up to ₹5,000.
Last chance will be given for delay forgiveness
Suppose you are unable to file your ITR even by December 31, 2026, there is still one last resort. You can request the Income Tax Department for a condonation of the delay.