The time of millions of taxpayers in India runs out- the time of the Income Tax Return (ITR) filling the Financial Year (FY) 202425 (Assessment Year 202526) is nearly lapsing tomorrow. As the Central Board of Direct Taxes (CBDT) had extended the original due date, 31 July 2025, to 15/16 September 2025, millions of them were scurrying to do their returns but, even now, a substantial number remains to do it.
Although the figure of 70 million pending returns has been widely spread in social media and even in some news outlets, the actual figure of pending returns has been recorded to be more than 73 lakh (7.3 million) pending returns and has not been done by the CPC yet, which highlights a high number of pending returns that are yet to be acted upon in order to meet the year-end deadlines.
Why This Deadline Matters
It is not only a legal obligation that you should file your ITR on time, but it is a sort of financial protection. Filing returns within a due date will assist you in:
- No fines and interest.
- Get timely tax refunds
- Have a clean compliance record.
- ITR demonstration of loans or visas.
As of FY 2024-25, the majority of individuals and non-audit taxpayers had 16 September 2025 as the due date, but business with audit needs had another deadline.
In case you did not do so on this date but desire to do so in AY 2025-26, you have until 31 December 2025 with an extremely narrow window to file a belated or revised return – at extra cost.
The Price of Not Meeting the Deadline.
This is the crucial point: you can not be late in the main ITR deadline and be able to file a free one later.
1. The Late Filing Penalty (Section 234F) refers to the penalty that applies to late filing.
In the Act of 1985:
under the heading Income Tax, Section 234F:
- Until the total income is above 5 lakh 5000 late fee.
- One thousand in case total income is 5 lakh or below.
These penalties are in case you do file after the due date but before 31 December 2025.
2. Interest on Tax Due
Besides a late fee, the tax owed in itself is subject to interest pursuant to Section 234A – at present 1 per cent per month or portion thereof on the unpaid tax since the date of the tax became due until the filing of the ITR.
Revised and Delayed Returns What You need to know.
You may still file: in case you have entirely missed the due date.
- Late Repayment – up to 31 December 2025.
- Revised Return – even until 31 December 2025 in case you wish to amend errors in a return that has already been submitted.
But there is one more form that is worth knowing: ITR-U — the Updated Return.
3. ITR-U: Higher Tax for Delay
Section 139(8A): Under Section 139(8A), an Updated Return may be filed after the belated window but, again there is a condition, with a hefty surcharge added:
- A quarter of the amount of tax and interest payable had it been filed in 12 months of assessment year ending.
- 50% if filed between 12–24 months
- 60% in the 3rd year
- 70% in the 4th year
This is an extra tax on top of the real tax and interest that you pay.
That is where the much quoted 25 percent 70 percent added tax fits in you have to pay an added tax surcharge on the Form ITR-U when you wait far too long to file. This fine is specifically high to drive the taxpayers towards compliance in good time.
Outstanding Returns and Processing Delays.
Another difficulty, in addition to the filing, is the delays in processing:
- The Income Tax Department CPC (Centralized Processing Centre) has not been able to process the ITR of many taxpayers even after e-filing.
- Approximately 73 lakh returns are not processed i.e. refunds or notices may not have been made.
Raw returns may postpone payment of refunds and in other instances you may get mismatch notices when the information you use in your return does not match that of employers or banks.
The Ideas to beat the deadlines (Even now).
In case you are one of the ones who have not filed:
- Enter the e-filing portal at once.
- Check Form 26AS / AIS on tax credits.
- Check TDS, interest and deduction claims.
- Check file and e-verify the return prior to year-end.
- In case you missed the main date, belated/ updated return options should be used.
Despite penalties, it is virtually better to file late than not to file at all – due to the fact that unfiled returns may result in:
- Newsbites by the IT Department.
- Delayed refunds
- Cessation of carrying forward losses.
Conclusion
You have one day to go before the full force of the penalties and increased tax rates kicks in- unless you have already done your ITR to AY 2025-26, then do it. A failure to file may attract both fines and interest, as well as may compel you to later make expensive re-filing of updated returns.
The law is obviously aggressive in terms of compliance and since the time frame is rapidly shrinking, it is time to do it before it is too late, not tomorrow afternoon.
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