The last date to file income-tax returns (ITRs) for the financial year 2024–25 is just a week away and all eyes are on the income tax (I-T) department to see if the September 15 deadline will be extended yet again.
The government did give more time this time to file returns but many want still more days due to the delayed release of ITR utilities, which they argue would give taxpayers some breathing space.
Experts caution against leaving it for last minute. Moving early has advantages of smoother filing, avoiding interest charges and getting refunds quickly.
“If we file ITR closer to the extended due date, there are two major implications. Firstly, if there is any self-assessment tax to be paid, extra interest will accrue until the payment is made. Secondly, delayed filing of ITR results in delayed refunds,” said Sujit Bangar, founder, Taxbuddy.com.
Taxpayers with income beyond salary such as business income, rent or capital gains are required to pay advance tax if their liability exceeds Rs 10,000. Missing this obligation attracts interest.
The law is clear on interest implications. Under Section 234B, non-payment of advance tax attracts 1 percent interest a month from April until the date of actual deposit or filing of return. "Similarly, Section 234C imposes interest on taxpayers who fail to pay their dues on time during the fiscal year,” said Deepak Kumar Jain, Founder and CEO, TaxManager.
Apart from interest, taxpayers also risk running into technical glitches as normally there is rush to file returns. Some professionals are already facing issues while importing Annual Information Statement (AIS) and Taxpayer Information Summary (TIS) data into third-party software.
According to the I-T department, around 4.89 crore ITRs had been filed by September 8. For assessment year 2024–25, a record 7.28 crore returns were filed by July 31, 2024.
Experts advise against waiting for the deadline to be extended . Glitches are likely to worsen as portal traffic surges closer to the deadline.
“The auto-download link in third-party software for AIS/TIS is being changed frequently by the IT department due to heavy load on the portal. This may continue until September 15. Hence, it is advisable to download AIS/TIS reports whenever the link is active,” said Himank Singla, Partner, SBHS & Associates.
Missing the September 15 deadline does not mean all is lost. Taxpayers can still file a belated return until December 31, 2025. If that too is missed, an updated return may be filed later, subject to conditions.
Late filing has consequences. For instance, losses eligible to be carried forward for set-off against future income cannot be claimed if the return is filed after September 15.
Early filers, therefore, are better positioned to avoid penalties, portal slowdowns, and missed benefits.
Early is better
- Avoid additional interest on self-assessment tax
- Receive refunds faster, can put money to productive use
- Last-minute portal slowdowns and software glitches are for real
- Get peace of mind with compliance done on time
The September 15 extension should be treated as a cushion not a target. As Bangar said, “Filing early ensures you’re not paying unnecessary interest or waiting endlessly for refunds. Treat the extension as a buffer, not a deadline.”
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
