Missed Filing Income Tax Return? Read This

Taxpayers who missed the July 31 deadline can file a belated return, but late filing attracts fees and interest.

A late filing fee of Rs 1,000 or Rs 5,000 applies depending on the taxpayer's total income.

Belated filing can restrict carrying forward business and capital losses, though certain losses remain eligible for carry-forward.

Late filing may delay refunds and reduce interest payable on refunds due to taxpayers.

Taxpayers can file belated returns until December 31, 2026, while ITR-U carries an additional tax cost.

 

Taxpayers who missed the July 31, 2026, income-tax return (ITR) filing deadline for 2025-2026 (FY26) can still file a belated return. However, late filing carries a cost.

Individuals not required to get their accounts audited -- such as salaried employees, pensioners and most taxpayers without business or professional income -- had to file their ITRs by July 31, 2026.

Those with unaudited business or professional income can file by August 31, 2026.

Taxpayers who miss the due date have to pay a late filing fee and interest on unpaid taxes.

"A late filing fee under Section 234F is payable if the ITR is filed after the due date. The fee is Rs 1,000 if the taxpayer's total income does not exceed Rs 5 lakh, and Rs 5,000 in all other cases," says Neeraj Agarwala, senior partner, Nangia & Co.

Taxpayers must pay interest under Section 234A at 1 per cent per month or part of a month on unpaid self-assessment tax, from the filing due date until they file the return or pay the tax, whichever is earlier.

"Depending on the taxpayer's circumstances, interest under Sections 234B and 234C may also apply. Use the interest calculator on the income tax department's efiling portal to calculate the applicable interest," says Agarwala.

Taxpayers can generally carry forward business and capital losses only if they file their ITR by the due date under Section 139(1) of the income tax Act.

"If the return is filed belatedly, these losses cannot ordinarily be carried forward and set off against future income," says Agarwala.

They can, however, still carry forward certain losses, such as unabsorbed depreciation.

A refund becomes payable only after the taxpayer files a valid ITR and the I-T department processes it.

"Filing a belated ITR does not result in the rejection of a refund claim, but it can delay the processing of the return and, consequently, its release. If the return is selected for scrutiny or contains discrepancies that require clarification, the refund may be delayed further," says Vishwas Panjiar, managing partner, SVAS Business Advisors.

Interest on refund could also be reduced. For a return filed by the due date, the department generally calculates interest from April 1 of the relevant assessment year until it grants the refund.

"However, if the return is filed late, interest is generally calculated only from the date of filing the ITR, reducing the overall interest amount. Any delay in granting the refund attributable to the taxpayer may also be excluded while calculating the interest payable," says Panjiar.

Late filers get less time to detect errors before the department processes the return. They can still file a revised return within the prescribed time limit or rectify apparent mistakes after processing.

Timely filing, however, provides more time to reconcile the return with the Annual Information Statement (AIS), Form 26AS, Taxpayer Information Summary (TIS) and other financial records.

Loan and visa applications

A belated ITR is valid, but timely filing is important for loan and visa applications.

"Banks and non-banking financial companies (NBFCs) typically seek recent ITRs to assess an applicant's income, repayment capacity and creditworthiness, while embassies may require them as proof of financial stability and tax compliance," says Panjiar.

A delayed ITR could prompt greater scrutiny, document requests or processing delays.

Taxpayers can file a belated return by December 31, 2026.

"For most taxpayers, a belated return can generally be filed only under the new tax regime, as the option to choose the old tax regime is ordinarily not available after the due date," says Rupali Singhania, founder, Areete Consultants.

Those who miss even the belated return deadline can file an updated return (ITR-U) within four years from the end of the relevant assessment year.

"Unlike a belated return, which attracts a flat late fee of Rs 1,000 to Rs 5,000, filing an ITR-U is significantly more expensive. In addition to the regular tax liability and applicable interest, taxpayers are required to pay an additional tax," says Singhania.