If you don't file your Income Tax Return (ITR) by the due date, you face penalties including a late fee of up to Rs 5,000 (Rs 1,000 if income is under Rs 5 lakh) under Section 234F. Additionally, interest at 1% per month applies on unpaid taxes. You lose the benefit of carrying forward certain losses like capital or business losses to future years, and refunds may be delayed. Persistent failure can lead to legal consequences such as prosecution, fines, or even imprisonment, especially if tax evasion is suspected. Late filing also restricts switching between tax regimes and may attract increased scrutiny from the tax authorities. However, you can still file a belated return until December 31, 2025, but it will incur the late fee and other consequences.
