With just days left before the September 15th deadline to file the income tax return, the clock is ticking fast for taxpayers who’ve yet to file their
Income Tax Return (ITR). As of 7 September 2025, the Income Tax department’s website reports that over 4.89 crore returns have already been filed, edging closer to last year’s 7.28 crore total. If you’re among those who haven’t filed their taxes yet, you should do it now. Even if you believe your tax liability is nil, that doesn’t exempt you from filing your return. Many taxpayers wrongly assume that no dues mean no obligation. But skipping your ITR can carry costly consequences. Failing to file your income tax return can attract a penalty of up to Rs 5,000 under Section 234F (reduced to Rs 1,000 if your income is below Rs 5 lakh). Additionally, if you have foreign assets or income, non-disclosure can lead to penalties of up to Rs 10 lakh under the Black Money Act. Therefore, even if you don’t have any tax payable, filing your return is a legal obligation. Moreover, it serves as valid proof of income for purposes such as securing loans, increasing credit limits, obtaining insurance, applying for visas, settling claims, and expediting TDS/TCS refunds. ITR Filing Confirms Tax Compliance Even if your taxes have already been deducted at source via TDS, TCS, or advance tax payments, filing your return is a crucial final step. It formally acknowledges the tax paid and helps complete the compliance cycle. Without this, your tax file remains technically incomplete. Refunds, Regimes, And Financial Planning If you think you’ve overpaid under the old tax regime? Filing your return might give you a refund, especially if you’re eligible for lower slabs under the new regime. Your actual liability might be negative, and the only way to claim that money back is by filing an ITR. ITR For Visas, Loans And Insurance International travel plans? Many countries require past ITRs during visa applications. The same goes for loan eligibility, where banks assess your creditworthiness through past returns. And if you're applying for life or health insurance, insurers often consider your reported income.
