Rs 1,000, Rs 5,000 or more? Here's the penalty for missing the July 31 ITR deadline

Still haven't filed your Income Tax Return (ITR)? Then don't wait any longer. Today is the last day to file your return for FY 2025-26, and missing the deadline could mean paying more than just a late fee.Many taxpayers leave ITR filing until the very last moment. But last-minute filing can sometimes backfire. A slow website, technical glitches, missing documents or simple errors can prevent you from filing on time. If that happens, you may have to pay a penalty, interest and even lose some important tax benefits.LATE FILING CAN PROVE EXPENSIVEAccording to Gaurav Makhijani, Tax Head at Makhijani Gera & Associates, taxpayers can still file a belated return after July 31, but it comes at a cost."The due date for filing your Income Tax Return for Financial Year 2025-26 (Assessment Year 2026-27) is 31 July 2026. If you do not file your return by this date, it is still possible to file a belated return, subject to the prescribed time limit. However, it is important to note the implications. You may lose several important tax benefits and may have to pay additional costs," he said. HOW MUCH IS THE LATE FILING FEE?One of the first consequences of missing the deadline is the late filing fee under the Income-tax Act.Makhijani explained that taxpayers whose total income does not exceed Rs 5 lakh will have to pay a late fee of Rs 1,000. Those with total income above Rs 5 lakh will have to pay Rs 5,000 while filing a belated return.INTEREST MAY ALSO BE CHARGED The late filing fee may not be the only additional cost."If any tax remains unpaid, interest under Section 234A is charged at 1% per month or part of a month from the due date until the return is filed," Makhijani said.This means the longer you delay filing your return, the more interest you may have to pay if you have any outstanding tax liability.YOU COULD LOSE IMPORTANT TAX BENEFITSMissing the July 31 deadline may also affect your future tax planning.According to Makhijani, taxpayers who have incurred business losses or capital losses, such as losses from selling shares, may not be able to carry those losses forward if they file their return after the due date. This means they may lose the opportunity to adjust those losses against future income, resulting in a higher tax liability later.OLD TAX REGIME OPTION MAY NO LONGER BE AVAILABLEAnother important consequence relates to the choice of tax regime."Taxpayers who wish to exercise the option for the old tax regime need to file the tax return on or before the due date. They will lose this option if the return is filed after the due date. For a belated return, it can be filed only under the default regime, that is, the new tax regime," he said.Before you file, don't forget these checksMakhijani advises taxpayers to review their return carefully before submitting it. Make sure all sources of income have been reported correctly, reconcile the details with AIS, Form 26AS and TDS certificates, verify your bank account details and deductions, and complete the e-verification process after filing."An unverified return is treated as invalid," he cautioned.With the deadline ending today, taxpayers who have not yet filed their returns should complete the process without further delay. Filing on time can help you avoid late fees, interest and the loss of valuable tax benefits, while also ensuring faster processing of your return and refund.- EndsPublished By: Jasmine anandPublished On: Jul 31, 2026 13:21 IST