Team SKM,
The Income Tax Return (ITR) deadline of September 15, 2025, is almost here, and taxpayers are being urged to act quickly. Filing ITR is not only a compliance requirement but also a way to protect your financial future. While timely filing offers multiple advantages, late filing comes with penalties, restrictions, and even prosecution risks. Here’s a clear picture of both sides.
Consequences of Missing the Due Date
Financial Penalties
Late filers may face up to 50% of tax due as a penalty, in addition to late fees under Section 234F.
Loss of Tax Benefits
Losses (other than house property) cannot be carried forward if returns are filed after the deadline.
Accumulating Interest Charges
Interest under Section 234A is charged at 1% per month on pending tax dues.
Delayed Refund Processing
Late filing also means delays in refund processing, blocking your cash flow.
Benefits of Filing ITR on Time
Easier Loan Approvals
Timely ITRs strengthen your credit profile and help when applying for home, vehicle, or personal loans.
Faster Tax Refunds
If you’ve paid excess tax, filing early ensures quick processing of your tax refund.
Proof of Income and Address
ITRs serve as official proof of income and address, useful for loans and visa applications.
Smoother Visa Applications
Embassies often require past ITR copies. Timely filing makes visa approvals smoother.
Carry Forward Tax Losses
Only if filed before the deadline, losses (like business or capital losses) can be carried forward and set off against future gains.
Stay Compliant & Avoid Legal Issues
By filing on time, you prevent the risk of penalties, interest, and prosecution by the Income Tax Department.
Final words
Filing your ITR before September 15 not only saves you from penalties and prosecution but also strengthens your financial profile. Don’t wait until the last moment.