Taxpayers Face Penalties for Late ITR Filing After September 15, 2025

According to the information available as of August 4, 2025, the Income Tax Return (ITR) filing process in India is primarily based on annual income thresholds and taxpayer slabs, with specific exemptions outlined for the unemployed and students.

It is prudent for all taxpayers below the age of 60 to file an ITR if their total annual income exceeds ₹2.5 lakh under the old regime or ₹3 lakh under the new one. However, it is not mandatory for individuals, whether unemployed or students, to file income tax returns, especially if their income remains below these exemption limits.

Still, as a well-aware citizen, it is always advisable to file income tax returns. This filing helps in the creation of a government-backed digital record, which can come in handy as income documents for even availing credit instruments and new jobs.

For the assessment year 2025-26, if a belated return is filed after September 15, 2025, a penalty of ₹5,000 applies if income exceeds ₹5 lakh, whereas ₹1,000 is charged for lower incomes. Filing of taxes online through the official portal remains the most prudent method, and the selection of the correct ITR form from ITR-1, ITR-2, along with the others, is crucial depending on the income source.