A Crucial Tax Deadline Is Approaching – Are You at Risk of a Penalty?:

If you're someone who needs to get their accounts audited, a crucial deadline is fast approaching. The last day to file your Income Tax Return (ITR) is September 15, 2025. Missing this date isn't just about getting a reminder notice; it can hit you in the wallet with some hefty fines and interest charges.

So, who does this deadline apply to? Primarily, it's for companies and individuals whose financial accounts are required to be audited.

What happens if you miss the September 15 due date?

Let's break down the financial consequences in simple terms.

If you file your return after the deadline, you’ll have to pay a late filing fee under Section 234F of the Income Tax Act. The amount depends on your income:

If your total income is more than ₹5 lakh, you'll face a penalty of ₹5,000.

If your total income is ₹5 lakh or less, the penalty is a smaller sum of ₹1,000.

But that’s not all. On top of the late fee, you’ll also be charged interest on any tax you still owe.

Interest on Late Filing (Section 234A): For every month (or part of a month) you are late, you will be charged 1% simple interest on the outstanding tax amount. The longer you wait, the more this adds up.

Interest on Advance Tax (Sections 234B and 234C): If you didn't pay enough advance tax during the year, you'll face additional interest charges under these sections.

Beyond the financial penalties, filing late means you can't carry forward certain losses (like those from business or capital gains) to future years to offset profits. This could lead to a bigger tax bill down the road.

The bottom line is simple: Filing your ITR on time saves you money and a lot of unnecessary stress. So, if this deadline applies to you, make sure you get it done before September 15.