Income Tax Return: Know the Key Difference Between Due Date and Last Date to Avoid Financial Penalties

Income Tax Filing 2025: Why Understanding the Difference Between Due Date and Last Date Matters

Filing your Income Tax Return (ITR) correctly and on time is essential, but many taxpayers still remain confused about two critical dates involved in the process: the "Due Date" and the "Last Date". While the Income Tax Department has extended the deadline for filing the return for the financial year 2024–25 to September 15, 2025, experts advise against waiting until the last moment. Understanding the distinction between these dates could help you avoid penalties, interest, or even the loss of tax benefits.

Two Important Dates You Must Know in ITR Filing

According to tax expert Balwant Jain, the ITR filing process involves two main deadlines:

Due Date

Last Date (Final Deadline)

Many taxpayers mistakenly assume that the due date is the final deadline to file their return. But this isn’t true. While missing the due date comes with its own set of consequences, you can still file your return later — but with certain penalties and missed benefits.

What is the Due Date?

For the financial year 2024–25, the original due date was July 31, 2025. However, the government has extended this deadline to September 15, 2025. Filing by this date ensures you can enjoy full benefits such as carrying forward certain losses and avoiding late filing fees.

What Happens If You Miss the Due Date?

If you miss the due date but still file your return by the last date, which is December 31, 2025, you can avoid the complete loss of the filing opportunity. However, you will face specific consequences:

• Late Filing Fees
  A penalty is levied based on your taxable income.

  • If your income is more than ₹5 lakh, the penalty is ₹5,000.

  • If your income is below ₹5 lakh, the penalty is ₹1,000.

• Interest on Tax Payable
  You may need to pay interest on unpaid taxes under Sections 234A, 234B, or 234C of the Income Tax Act.

• Loss of Carry Forward Benefits
  If you’ve incurred losses in capital gains or business income, you cannot carry them forward if your return is filed after the due date.

• Interest on Refund Delays
  If you’re eligible for a refund, delaying the return filing means losing out on the interest earned on that refund amount.

Last Date Isn’t the Same as No Deadline

You cannot file an ITR once the last date passes. For FY 2024–25, December 31, 2025, is the final date to file your return. After this, you’ll have no option to file unless the government specifically opens a window for “condonation of delay,” which is only applicable in very rare cases.

Example: Why Filing Late Can Cost You

Take the case of Rajeev Sharma, a senior citizen earning income from bank interest, mutual fund dividends, and stock investments. Since he’s a senior citizen, he isn’t liable to pay advance tax. However, if he delays filing his ITR beyond September 15, 2025, he will still have to pay interest on the tax due for the delay period and might lose interest on refunds as well. If his taxable income exceeds ₹5 lakh, he would also be liable for a ₹5,000 late fee.

Final Thoughts: Don’t Delay, File Early

Filing your ITR well before the deadline allows you to:

• Avoid last-minute rush and portal crashes

• Ensure accuracy and time for correction

• Get faster processing and quicker refunds

• Prevent financial penalties and loss of tax benefits

Conclusion

Understanding the difference between the due date and last date for ITR filing is more than just a technical detail — it can directly impact your financial health. Filing after the due date invites penalties, delays refunds, and may result in the loss of important tax benefits. Therefore, it’s always better to act early, consult a tax expert if needed, and file your return on time.