ITR filing 2025: Why individual taxpayers must file their tax returns on September 15

ITR filing: Ensure that you complete your ITR filing exercise today

With taxpayers and chartered accountants reporting multiple glitches on the ITR portal – including intermittent access issues, problems in downloading the Annual Information Statement (AIS) or Form 26AS, and more – it is best to complete the process at the earliest if you haven’t done so already.

The cost of filing belated returns

Even if you miss the September 15 deadline (extended from the original due date of July 31), you can still file your return by December 31, 2025, as a belated return under Section 139(4). According to income tax rules: “Any person who has not furnished a return of income within the time period allowed under section 139(1)…may furnish return for any previous year at any time three months before the end of the relevant assessment year or before completion of the assessment, whichever is earlier.”

However, you will need to pay a penal late-filing fee of Rs 5,000 under Section 234F, though it is capped at Rs 1,000 for taxpayers with income below Rs 5 lakh. Moreover, missing the due date doesn’t just mean paying late-filing fees, but also results in loss of certain key benefits.

You will also forfeit the option to carry forward capital losses booked on the sale of stocks, mutual fund units, or property during the year. Taxpayers under the old regime should be aware that exemptions and deductions available under that structure cannot be claimed if the September 15 deadline is missed.

You will also be charged penal interest under Section 234A at the rate of 1 percent per month or part thereof on the unpaid tax amount starting from the day after the due date, which is September 15 for FY 2024-25 (AY 2025-26).

Also read: ITR filing live blog: Portal glitches and AIS access woes trouble taxpayers, say professionals

Key dates to remember

-          July 31, 2025 – Original due date for filing ITR for individual taxpayers

-          September 15, 2025 – Extended due date for ITR filing for FY 2024-25 (AY 2025-26)

-          December 31, 2025 – Due date for filing belated or revised returns

-          March 31, 2030 – Deadline for filing Updated Return for FY 2024-25

Updated Return facility is useful, but beware of the restrictions

If you miss the belated return deadline too, income tax laws still offer another window — though at a significantly higher cost.

The Updated Return facility, introduced in 2022, allows taxpayers to file returns or correct mistakes under Section 139. As per the I-T department’s FAQs: “The section provides that an updated return can be filed by any person irrespective of the fact whether such person has already filed the original, belated or revised return for the relevant assessment year or not (subject to certain conditions).”

An updated return can be filed within 48 months from the end of the relevant assessment year. For example, the ITR for AY 2025-26 (FY 2024-25) can be filed up to March 31, 2030.

This option is available only after the original and belated return due dates have passed by. It is meant to allow taxpayers to declare additional income, if any, and pay the applicable tax. You cannot, however, use the facility to claim additional losses or refunds, nor can it reduce your tax liability. Importantly, once filed, an updated return cannot be revised.

Also read: ITR filing 2025: How the Updated Return facility gives taxpayers a second chance to get it right

Also, note that that filing an updated return comes with a steep additional tax outgo. If filed within 12 months from the end of the assessment year, you must pay an extra 25 percent of the additional tax. This increases to 50 percent within 24 months, 60 percent within 36 months and 70 percent within 48 months.