ITR Filing 2025 Last Day: Missing Due Date Can Cost HRA Deduction, Home Loan Benefits, Here’s How | Tax News

Income tax filing 2025

ITR Filing 2025 Due Date Exemption: The Old income tax regime allows taxpayers to claim several deductions under Section 80C, including HRA, home loan interest, etc. Taxpayers can deduct their total tax liability for a given financial year by applying these deductions while filing their Income Tax Return (ITR). However, there’s a catch that every taxpayer must know to avoid paying heavy penalty or interest.

Taxpayers can claim exemptions and deductions under the old tax regime unless and until they file their ITRs on or before due date, September 16, 2025. Post the due date, taxpayers aren’t eligible to claim exemptions and deductions HRA and home interest, disallowing them to reduce their tax liabilities.

This happens due to the unavailability of old tax regime option in belated filing. Taxpayers have to file their ITRs only under the new tax regime. As a result, you would become liable to pay the tax equal to the short deduction of TDS, plus the interest on it along with penalty.

How Does This Work?

A taxpayer requires to submit proofs for the exemptions/deductions to their employers, so it can deduct lower TDS their salaries. This works lest you should opt for old tax regime for the purpose of TDS from salary.

Once taxpayers apply exemptions and deductions under OTR, the tax liability might be lower compared to new tax regime.

If a person does not file the return on time, the tax he avoided paying earlier (because of lower TDS or exemptions claimed) will still have to be paid. Along with this, there can also be extra costs:

• Loss of exemptions/deductions: Benefits like HRA and some other exemptions under the old regime cannot be claimed. This increases the tax payable.

• Late filing fee: A fine of Rs 5,000 if income is above Rs 5 lakh, and Rs 1,000 if income is below Rs 5 lakh.

• Interest charges: Interest at 1% per month (or part of a month) on the unpaid tax, under Section 234A. In some cases, Section 234B interest also applies.

• Loss of benefits: You cannot carry forward most losses (like business or capital losses) if the return is filed late. Only house property loss is allowed to be carried forward.

• Refund delay: If you are due a refund, it will take longer to process. The interest on refund will count only from the date you actually file the return till the date the refund is paid.

September 16 Is The Last Day For Non-Audit Taxpayers

In simple terms, the income tax amount equal to the exemption your employer gave you earlier (through lower TDS) will now have to be paid.

The income tax department on Monday extended by one day the deadline for filing the income tax return (ITR) for AY 2025-26, till September 16. Earlier, the ITR filing last date was September 15.

“The due date for filing of income tax returns (ITRs) for AY 2025-26, originally due on July 31, 2025, was extended to September 15, 2025. The CBDT has decided to further extend the due date for filing these ITRs for AY 2025-26 from September 15, 2025, to September 16, 2025,” the Central Board of Direct Taxes (CBDT) said in a late-night circular.