look news india
The last date for filing Income Tax Return (ITR) for the assessment year 2026-27 has been fixed as July 31, 2026. Every year, many taxpayers are not able to submit their returns on time in the last days due to technical failure of the server or any other reason. If you also miss the date of 31st July, then there is no need to panic, but it is sure to put extra burden on your pocket. Under Section 139(4) of the Income Tax Act, taxpayers are given the facility to file ‘Belated Return’ (Belated ITR). You can submit your belated return till December 31, 2026, however, you will have to pay late fees and interest for this.
How much penalty and interest will be charged under Section 234F and 234A?
Both penalty and interest are charged by the Income Tax Department for filing returns after July 31:
-
On total income more than ₹5 lakh: If your total annual income is more than ₹5 lakh, then under section 234F you ₹5,000 Late fee will have to be paid.
-
On total income up to ₹5 lakh: Giving relief to small taxpayers, the maximum penalty in this situation is only ₹1,000 were determined.
-
On income below the tax-free limit: If your total income is less than the basic limit of tax exemption and you are filing returns voluntarily, there will be no penalty.
-
1% monthly interest on outstanding tax (Section 234A): If you have any tax outstanding, simple interest at the rate of 1% per month will be added on the outstanding amount from August 1, 2026 till the date of payment.
4 big disadvantages of missing the deadline of 31st July
Not filing ITR on time not only leads to financial penalty, but also causes taxpayers to lose many important rights and facilities:
-
Loss Carry Forward: You will not be able to set-off any loss incurred in the stock market, Futures and Options (F&O) or trading against the profits of the next years. Only house property loss will be allowed to be carried forward.
-
Option to choose old tax regime ended: If you wanted to choose the old tax regime for this financial year, then this option will not be available in the returns billed after July 31. You will have to file returns under the by-default New Tax Regime only.
-
Delay in Refund and Loss of Interest: There will be a significant delay in getting the refund of excess deducted TDS. Also, due to not filing on time, you may lose interest on refund under Section 244A.
-
Danger of Income Tax Department notice: If you do not file the return by December 31 despite having taxable income, the Income Tax Department can issue you a legal notice under Section 142(1) or Section 148.
Tax expert advice
Income tax experts believe that it is wisest to file your return before July 31 to avoid sudden increase in server traffic and technical disruptions at the last moment. This will not only save penalty and interest, but all tax benefits will also be completely protected.