New Delhi: If you missed the Income Tax Return (ITR) filing deadline, don’t worry—you can still file your ITR by paying the applicable penalty and interest. However, there’s an important rule to keep in mind: if you file after the due date, you cannot choose between the old and new tax regimes. Late filers are required to use the new tax regime as per the Income Tax Department guidelines. In short, choosing between tax regimes is only allowed when you file your return on time.
Why Late Filers Must Use the New Tax Regime
The government has made the new tax regime the default option for taxpayers filing after the deadline. While it offers lower tax rates, it comes with fewer exemptions and deductions. Those who want to stick to the old regime must file their return on time.
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For professionals and business owners, the rules are stricter. To continue under the old regime, they must submit Form 10-IEA before the deadline—otherwise, they are automatically shifted to the new regime for that financial year.
This step helps the Income Tax Department curb misuse of extended filing timelines and ensures timely compliance.
Consequences of Filing a Late ITR
If you file your Income Tax Return (ITR) after the deadline, you may have to pay a penalty of up to Rs 5,000 and other charges. Under Section 234A, interest of 1% per month (or part of a month) is charged on any unpaid tax. Depending on the case, a penalty under Section 271F may also apply. However, if you’ve already paid your taxes and only the return is pending, no interest will be charged.
3 Ways to File Your ITR After the Deadline
Belated Return – You can still file your belated ITR under Section 139(1). This may involve paying some penalty and interest, depending on your income.
Revised Return – If you’ve already filed your ITR but later notice errors or omissions, you can file a revised return. This must be done before December 31, 2025.
ITR-U (Updated Return) – For taxpayers who missed both the belated and revised deadlines or discover undeclared income, the ITR-U allows filing an updated return. The window for this has been extended to 48 months under the Finance Act 2025.
