Belated ITR Filing 2025: Late Fees, Penalties, and Loss of Old Regime Deduction?
Author: CA. Ena Kansal, Apurv Kansal and Company, Chartered Accountants, Indore
(The author is a Practicing Chartered Accountant and a renowned Trainer with an exposure in Audits, Direct & Indirect Taxes.
Author can be reached at ena@apurvkansal.co.in)
What Is Belated ITR Filing 2025?
The due date for filing Income Tax Returns (ITR) for individual taxpayers not subject to audit was September 16, 2025. If you did not file your return by this deadline, don’t worry—you still have time.
A return filed after the due date but before December 31, 2025 is termed as a belated ITR under Section 139(4) of the Income Tax Act.
Important Note: While a belated ITR keeps you compliant with tax laws, it comes with monetary costs (late fees and interest) and non-monetary costs (loss of deductions, delayed refunds, and stricter scrutiny).
Income Tax Return Late Fees and Penalties
Missing the original due date results in penalties under Section 234F:
- Income below ₹5 lakh → Late fee of ₹1,000
- Income above ₹5 lakh → Late fee of ₹5,000
- Nil return (no taxable income) → No late fee
But that’s not all. Filing late may also invite interest charges:
- Section 234A → Interest for late filing of return
- Section 234B → Interest on shortfall of advance tax payments
- Section 234C → Interest for deferment of advance tax installments
Pro tip: The earlier you file your belated ITR, the lower your interest outgo.
What Benefits Are Lost in Belated ITR Filing 2025?
One of the biggest disadvantages of filing your ITR late is that you lose access to old tax regime deductions.
From AY 2024–25, the new regime is the default tax system. If you wanted to opt for the old regime, you had to file your return on or before the due date.
This means filing a belated ITR in 2025 will deny you:
- House Rent Allowance (HRA) deduction
- Section 80C deductions (EPF, PPF, ELSS, LIC, etc.)
- Leave Travel Allowance (LTA) exemption
- Home loan benefits (interest & principal repayment)
- Other deductions like 80D (medical insurance), 80E (education loan), and NPS contributions
Impact: If your tax planning relied on deductions under the old regime, missing the deadline could significantly increase your effective tax liability.
Other Consequences of Filing ITR Late
Apart from late fees and lost deductions, here are additional drawbacks of belated filing:
- Refund Delays
Your refund (if eligible) will be processed later than usual, affecting your cash flow.
- Loss of Carry-Forward of Losses : Business and capital losses cannot be carried forward if you miss the deadline.Only house property loss and unabsorbed depreciation are allowed to be carried forward.
- Increased Scrutiny by IT Department
Late ITRs are more likely to be flagged for detailed examination, increasing the chances of queries or notices.
FAQs on Belated ITR Filing 2025
- Can a belated ITR be revised?
Yes, but only until December 31, 2025. After this date, no revisions are possible.
- Can I still claim a refund in a belated ITR?
Yes, refunds can be claimed. Just ensure your bank account is pre-validated on the income tax portal.
- Is filing mandatory even if I have already paid all taxes?
Yes. Even if your taxes are fully paid via TDS or advance tax, filing ITR is mandatory if:
- Your income exceeds the basic exemption limit, or
- You meet conditions like high-value transactions (large deposits, foreign travel, high electricity bills, etc.).
- Will I face prosecution for not filing ITR?
- If significant tax is evaded, non-filing may attract penalty and prosecution:
- 3 months to 2 years of imprisonment, or
- 6 months to 7 years if tax evasion exceeds ₹25 lakh.
Key Takeaways
- Belated ITR filing 2025 deadline: December 31, 2025
- Income tax return late fees: ₹1,000 (income < ₹5 lakh) or ₹5,000 (income > ₹5 lakh)
- Old vs new regime deductions: Old regime cannot be chosen if filing late
- Refunds, carry-forward losses, and deductions are impacted
- Prosecution risk: In extreme cases of non-filing
Filing late is better than not filing at all—but the smart choice is to file before the deadline to save money, avoid stress, and secure all tax benefits.
How Apurv Kansal & Co. Can Help
Navigating tax laws, deadlines, and deductions can be overwhelming—especially if you’ve missed the ITR due date. At Apurv Kansal & Co., we simplify the process and help you stay compliant while minimizing your tax burden.
Here’s how we assist our clients:
- Belated ITR Filing Support: Guidance on filing under Section 139(4) and ensuring accuracy.
- Penalty & Interest Management: Strategies to minimize interest and late fees.
- Old vs New Regime Advisory: Personalized analysis to identify which regime benefits you most.
- Refund Assistance: Fast-tracking refunds by ensuring all compliance checks are completed.
- Loss Carry-Forward Planning: Maximizing benefits for future years within legal limits.
- Notices & Scrutiny Handling: Expert representation in case of IT department queries.
Apurv Kansal and Company
