Unpaid taxes: Taxpayers are advised to file their ITR before the deadline to avoid last-minute rush and penalties for late filing.

Taxpayers: Mistakes made during the rush to file income tax returns can often lead to the rejection of refunds and may even result in notices and penalties. If you miss the deadline, you will be liable to pay a late filing fee under Section 234F of the Income Tax Act.

Depending on the taxpayer's income and the extent of the delay, this penalty can go up to ₹5,000. If the total income is less than ₹5 lakh, the maximum late filing penalty is ₹1,000; if the total income exceeds ₹5 lakh, the penalty is ₹5,000.

Will a penalty apply even if there is zero tax liability?

Crucially, if a salaried individual misses the July 31, 2026, deadline for filing their ITR, they can still submit a 'belated return' by December 31, 2026. However, they may be required to pay a late filing fee. This rule applies even if their tax liability is zero due to exemptions or rebates provided by the tax department.

In this context, ITR filing is not mandatory only for those whose income falls below the exemption limit. Under the old tax regime, this basic limit is ₹2.5 lakh, whereas under the new regime, it is ₹4 lakh.

For instance, suppose a taxpayer earned ₹9 lakh in the financial year 2025-26 and was required to file their return by July 31, 2026. Even if a taxpayer files their return in November 2026, it is permissible, but they will be required to pay a late filing fee of ₹5,000. Apart from the penalty, if any tax liability remains outstanding after the due date, the taxpayer may also have to pay interest on that amount.

ITR Deadlines for FY26

The Income Tax Department has set different deadlines based on the taxpayer's category. Salaried individuals and those filing ITR-1 or ITR-2 must file their returns by July 31. Taxpayers who do not require a tax audit and file ITR-3 or ITR-4 have until August 31. Those whose accounts are subject to a mandatory tax audit must file their returns by October 31.

The deadline for taxpayers falling under the ambit of transfer pricing regulations is set for November 30. If a taxpayer fails to file the return by the prescribed deadline, they can still file a 'belated return' (a return filed after the due date) by December 31. Generally, the return can also be rectified by filing a 'revised return' up to March 31, 2027.