Missing the July 31 ITR filing deadline doesn’t mean you’ve lost the chance to file your return. Taxpayers who are not required to get their accounts audited can still file a belated return until December 31, 2026. However, Adhil Shetty, CEO of BankBazaar, says that any further delay could mean paying more and missing out on important tax benefits.
Filing late comes at a cost
The first impact of filing late is the cost. A belated return can attract a late filing fee of up to Rs 5,000, depending on your income. “If you still have any self-assessment tax to pay after adjusting TDS, advance tax and other eligible credits, interest under Section 234A is charged at 1 per cent for every month or part of a month that the outstanding tax remains unpaid,” Shetty said.
If you are expecting a refund, filing late could also delay the time it takes for the money to reach your bank account. In some cases, it may also reduce the interest payable on the refund.
You could lose an important tax benefit
Many taxpayers don’t realise that filing late can also affect future tax savings. If you’ve incurred losses from shares, mutual funds or a business during the year, you generally lose the option to carry those losses forward and use them to reduce your tax liability in future years.
What you should do now
If you’ve missed the deadline, the first priority is to clear any outstanding self-assessment tax, as interest will continue to accrue until the tax is paid. “Before filing your belated return, carefully reconcile your Form 16, Form 26AS and Annual Information Statement (AIS) to ensure your income and tax credits match the records available with the Income Tax Department. Spending a little extra time on this step can help avoid errors, mismatches and unnecessary queries later,” he added.
Once you’ve filed your return, complete the e-verification process promptly. An unverified return is treated as if it has not been filed, making e-verification just as important as filing the return itself.
Don’t miss the belated return deadline
The deadline to file a belated return for AY 2026-27 is December 31, 2026. After that, taxpayers may be able to file an updated return (ITR-U), subject to the conditions under the Income-tax Act. An updated return attracts additional tax and cannot be used to claim a refund or reduce an existing tax liability.
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(This article is for informational purposes only and should not be construed as investment, financial, or other advice.)