Every Indian citizen earning above a certain threshold is required to pay taxes and file an Income Tax Return (ITR) annually. However, many people either delay or skip filing due to lack of awareness or confusion about rules and timelines. Whether you are a salaried employee, a freelancer, a business owner, or even a farmer with taxable income, understanding ITR is essential.

This article explains basics of ITR, how to file it, key benefits, important deadlines (including mid-September and late-December provisions), and what happens if you miss them.

What is ITR?

Income Tax Return (ITR) is a form used by taxpayers in India to report their annual income, deductions, tax liability, and payments to the Income Tax Department. The data filed helps the government track tax compliance and refunds. There are different ITR forms (ITR-1 to ITR-7) based on the type of taxpayer and income source:

• ITR-1 (Sahaj): For salaried individuals earning up to ₹50 lakh.
• ITR-2: For individuals with income from more than one house property or capital gains.
• ITR-3: For business or professional income.
• ITR-4 (Sugam): For presumptive income under sections 44AD, 44ADA, or 44AE.

Each form serves a specific group and needs to be filled accordingly.

How is ITR Filed?

ITR can be filed online via the official Income Tax e-Filing portal. Here’s a basic step-by-step process:

1. Register/Login to the income tax portal.
2. Go to e-File > Income Tax Return > File Income Tax Return.
3. Select:
   • Assessment Year (e.g., for FY 2024-25, assessment year is 2025-26),
   • Mode of filing (Online/Offline),
   • Applicable ITR form.
4. Fill in details: Personal info, income, deductions, taxes paid, and bank account.
5. Validate and submit the return.
6. E-verify using Aadhaar OTP, net banking, or other available options.

Benefits of Filing ITR

Even if your income is below the taxable limit, filing ITR offers many benefits:

1. Claim Refunds: If excess TDS (Tax Deducted at Source) has been cut from your salary or investment, you can claim it back by filing ITR.
2. Proof of Income: ITR serves as proof of income and is often required for visa applications, loan approvals, and government tenders.
3. Carry Forward Losses: Filing ITR allows you to carry forward capital or business losses to offset future gains.
4. Avoid Penalty: Timely filing helps avoid penalties and legal complications under the Income Tax Act.
5. Builds Financial Credibility: Regular ITR filing strengthens your financial profile, especially if you’re planning to take credit cards, business funding, or home loans.

Last Date for Filing ITR for FY 2024–25 (AY 2025–26)

• For individual taxpayers (not subject to audit): July 31, 2025, This is the original deadline for most salaried individuals and small business owners.
• For businesses/audited accounts: September 30, 2025, Extended deadline applicable to those whose accounts need to be audited.
• For businesses requiring transfer pricing report: November 30, 2025

What If You Miss the July 31 Deadline?

Don’t worry, the government provides additional options:

1. Belated Return (Section 139(4)) Till December 31, 2025:

If you miss the July 31 deadline, you can still file a belated return by December 31, but with penalties and some restrictions:

• Late filing fee of ₹1,000 (if income < ₹5 lakh) or ₹5,000 (if income > ₹5 lakh)
• Losses cannot be carried forward
• Interest under Section 234A, 234B & 234C may apply

2. Revised Return (Section 139(5)) – Also till December 31, 2025

Made a mistake in your original or belated return? You can revise it up to December 31 of the assessment year.

Mid-September Rule: For Audited Cases

Taxpayers whose accounts are required to be audited (typically businesses with turnover beyond specified limits) have until September 30, 2025, to file their ITR. These include:

• Professionals earning above ₹50 lakh
• Businesses earning above ₹1 crore (or ₹10 crore in case of digital transactions)

They must also submit the Tax Audit Report (TAR) by September 30.

Late December Rule: Final Deadline

December 31, 2025, is the absolute last date for:

• Filing belated returns
• Filing revised returns
• After this, you cannot file ITR unless:
  • You approach the Income Tax Commissioner with a valid reason
  • Or receive a notice from the department

What Happens If You Don’t File ITR at All?

Failing to file ITR without a valid reason may attract:

• Penalties under section 234F
• Prosecution under section 276CC (for high-value non-filers)
• Inability to claim refunds or carry-forward losses
• Interest liability on tax dues
• Loss of government subsidies, especially for LPG or schemes tied to income

Filing your ITR is not just a legal formality, it is a powerful financial habit which makes you a responsible citizen. Even if you missed the July 31 deadline, you can still file until December 31, though with some penalties. It is better to be late than never. If you fall under audit requirements, the mid-September date applies to you, while December 31 remains the final opportunity to file any ITR (belated or revised) for FY 2024–25. Do not delay, log in to the Income Tax portal and file your return at the earliest to avoid complications.