Missed the ITR Deadline? Here’s what you need to know about filing a Belated Return for AY25-26

The extended deadline for filing income tax returns (ITRs) for the assessment year 2025-26 (AY26) closed on September 16. However, taxpayers who missed the window still have one more chance to comply with the law—by filing a belated return. The Income Tax (IT) Department has clarified that belated returns can be filed until December 31, 2025. While this provides relief for defaulters, such returns come with financial costs and the loss of certain tax benefits.

What is a belated return?

A belated return is an ITR filed after the due date specified under Section 139(1) of the Income Tax Act. Ordinarily, the due date for most taxpayers is July 31, but for AY26, the deadline was pushed back to September 16 because of multiple changes in ITR forms. Any return filed between September 17 and December 31, 2025, will be treated as a belated return under Section 139(4).
According to the IT department: “Return of income which has not been furnished on or before the due date specified under section 139(1) is called a belated return. Belated return of income is furnished under section 139(4).”

Penalties and late fees for belated ITR

Filing after the deadline has monetary implications.

The key penalties are as follows:

Taxpayers with an annual income above Rs 5 lakh face a penalty of Rs 5,000.

If the total income is below Rs 5 lakh, the penalty is Rs 1,000.

Additionally, 1% interest per month (or part thereof) is levied on any unpaid tax amount until it is cleared.

The department cites Section 234F: “Late filing fees of Rs 5,000 shall be payable if the return is furnished after the due date specified under section 139(1). However, the amount of late filing fees to be paid shall be Rs 1,000 if the total income of the person does not exceed Rs 5 lakhs.”

Restrictions on refunds, losses, and deductions

While a belated return still allows you to claim a refund for excess taxes paid, there are critical drawbacks:
Tax regime lock-in: After the deadline, taxpayers cannot switch between the old and new tax regimes. Missing the deadline could therefore increase tax liability.

Loss carry-forward: Most business and capital losses cannot be carried forward if the ITR is filed late. An exception is losses from house property, which can still be carried forward.

Deductions blocked: Certain deductions and exemptions are not available under belated returns. These include Sections 10A, 10B, 80-IA, 80-IB, 80-IC, 80-ID, and 80-IE.

Risk of prosecution for non-payment of tax

The I-T department also warns that failure to pay taxes can lead to penalties, interest, and prosecution. In serious cases, it may result in imprisonment:

> 3 months to 2 years for non-payment of tax.

> 6 months to 7 years if the amount sought to be evaded exceeds ₹25 lakh.

The department’s portal notes: “Non-payment of tax attracts interest, penalty and prosecution. The prosecution can lead to rigorous imprisonment from 3 months to 2 years (when the tax sought to be evaded exceeds ₹25,00,000, the punishment could be 6 months to 7 years).”

How to file a belated return online
 

For taxpayers who missed the deadline, here’s how to file online:

Visit the official income tax portal and log in.

Go to e-File → Income Tax Returns → File Income Tax Return.

Select the assessment year (AY26) and filing mode as “online.”

Choose your taxpayer category (individual, HUF, etc.).

Pick the applicable ITR form.

Verify your personal details in the “Personal Information” section.

Under the filing section, select 139(4) (belated return).

Enter income details, compute liability, and pay outstanding taxes.

Taxpayers should note

Missing the September 16 deadline does not mean taxpayers are out of options. Filing a belated return by December 31, 2025, helps avoid notices and legal action. However, late filers should be prepared for penalties, restricted tax benefits, and the inability to shift tax regimes. The sooner the filing is completed, the lower the interest outgo and risk of compliance issues.