The season for filing Income Tax Returns (ITR) for the financial year 2025-26 (assessment year 2026-27) has started. Income Tax Department has issued all ITR forms. Despite this, many people wait for the last date and file returns at the last moment.
But waiting till the last minute can create many problems. Technical problems may arise on the tax portal, important information may be missing or the possibility of filling wrong information increases. If you file ITR on time, you get enough time to correct the mistakes and fill all the information correctly. Let us know why it is important to file ITR on time.
1. You will have to pay penalty for late filing of ITR
If you do not file ITR by the due date, you can file belated return till December 31, 2026. However, additional charges will have to be paid for this. Under Section 234A of the Income Tax Act, 1% interest will have to be paid on the outstanding tax for every month or part of the month.
At the same time, late fee will also be imposed under Section 234F. If the total income is more than Rs 5 lakh, late fee of Rs 5,000. Late fee of Rs 1,000 if total income is up to Rs 5 lakh. Therefore, these extra expenses can be avoided by filing ITR on time.
2. Will not be able to carry forward capital loss
If you have suffered a loss in the stock market, mutual fund, property or business, then the Income Tax law gives you the facility to adjust that loss in the subsequent years. This may reduce the tax burden in future.
But this facility will be available only when you file ITR by the due date. If you miss the deadline, you will not be able to carry forward capital loss or business loss to future years.
3. Your financial reputation may be affected
ITR is not only a tax return but also an important document of your financial credibility. While applying for home loan, personal loan, education loan or credit card, banks often ask for ITR of the last few years.
If you have not filed ITR on time, it may raise questions on your financial discipline and may cause problems in loan approval.
Apart from this, ITR is also asked as proof of income to get visa for many countries like America and Japan. In such a situation, if ITR is filed late, there may be difficulty in providing documents when required.
Last date to file ITR for FY 2025-26
- Salaried, Pensioners and Investors (ITR-1/ITR-2): 31 July 2026
- Freelancers and small businessmen (ITR-3/ITR-4, non-audit): 31 August 2026
- Tax audit matters: 31 October 2026
- Last date to file belated (delayed) ITR: 31 December 2026
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