File Your Income Tax Return Online Now

Today marks the final day to file Income Tax Returns (ITR) for the assessment year 2025-26. Taxpayers who have not yet submitted their returns must act

promptly to avoid penalties and interest charges. The deadline, originally set for July 31, 2025, was extended to September 15 to ease backend processing after revisions were made to ITR forms. As of now, there is no indication of a further extension. The current deadline applies to individual taxpayers and other non-audit cases, including salaried employees, pensioners, Hindu Undivided Families (HUFs), those earning from house property, capital gains or other sources, as well as small business owners and professionals operating under the presumptive taxation scheme (Sections 44AD, 44ADA, 44AE) with turnover below the audit threshold. According to the Income Tax Department, filing after September 15 will invite a late fee of up to Rs 5,000. For taxpayers with income below Rs 5 lakh, the penalty is capped at Rs 1,000. Additionally, interest at the rate of 1 per cent per month may apply on unpaid tax amounts. To avoid these charges, experts advise completing both filing and e-verification within 30 days. The Central Board of Direct Taxes (CBDT) has reported steady growth in compliance. For AY 2024-25, over 7.28 crore ITRs were filed by July 31, 2024, marking a 7.5 per cent rise from the previous year’s 6.77 crore filings. Officials attribute the increase to improved awareness, streamlined processes, and timely reminders issued through official channels.

Step-by-Step guide to file ITR online

1. Visit www.incometax.gov.in
2. Log in using your PAN or Aadhaar and password.
3. Navigate to e-File > Income Tax Return > File Income Tax Return.
4. Select Assessment Year 2025-26 and choose the appropriate ITR form.
5. Review pre-filled details such as salary, TDS, and bank interest.
6. Add any other income, deductions, or exemptions.
7. Choose your preferred tax regime (Old or New) and submit the form.
8. Complete e-verification within 30 days to finalise the process.

Tax authorities have urged citizens to avoid last-minute rush, which often leads to website slowdowns and inadvertent errors. Filing early not only helps avoid penalties but also ensures faster processing of refunds.

With no further extension announced, taxpayers are encouraged to file their returns today to stay compliant and steer clear of additional costs.

Interest on refunds (Section 244A of the Income Tax Act)

Taxpayers who are eligible for a refund after filing their Income Tax Return are entitled to receive simple interest on the refund amount, as laid out under Section 244A of the Income Tax Act. The provision reads:

244A. (1) Where refund of any amount becomes due to the assessee under this Act, he shall, subject to the provisions of this section, be entitled to receive, in addition to the said amount, simple interest thereon calculated in the following manner, namely:

(a) Where the refund is out of any tax collected at source under section 206C or paid by way of advance tax or treated as paid under section 199 during the financial year immediately preceding the assessment year, such interest shall be calculated at the rate of one-half per cent for every month or part of a month comprised in the period —

(i) from the 1st day of April of the assessment year to the date on which the refund is granted, if the return of income has been furnished on or before the due date under section 139(1); or

(ii) from the date of furnishing of return of income to the date on which the refund is granted, in other cases.

(aa) Where the refund is out of any tax paid under section 140A, such interest shall be calculated at the rate of one-half per cent for every month or part of a month from the date of furnishing the return or payment of tax, whichever is later, to the date on which the refund is granted.

Provided that no interest shall be payable if the refund is less than 10% of the tax determined on assessment.
(b) In any other case, such interest shall be calculated at one-half per cent for every month or part of a month from the date of payment of the tax or penalty to the date the refund is granted.

Sub-sections (1A) to (4) further detail interest payable when refunds arise from appellate orders, delays attributable to the assessee, and adjustments following reassessments.