ITR: Every year, as the date for filing Income Tax Return (ITR) approaches, a concern definitely arises in the minds of the people-if the return is not filed on time, then there may be a penalty or interest. But this time there is news of relief. The last date for filing ITR for the financial year 2024-25 has been extended from 31 July to 15 September 2025. Now the question arises whether any kind of penalty or interest will have to be paid for filing after 31 July?
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No effect of 234A due to extension of deadline
According to section 234A of the Income Tax Act, if a taxpayer files a return after the due date, then interest is charged on it at the rate of 1 percent every month. But when the government itself has extended the last date, then in this situation no interest of any kind will be charged under section 234A.
This simply means that now there will be no penalty or additional interest for filing ITR till 15 September 2025, provided you have paid your advance tax on time.
Rules are still applicable on delay in advance tax
It is worth noting that even though the date for filing the return has been extended, if you have not deposited the advance tax on time, then interest will have to be paid on it. For this, sections 234B and 234C of the Income Tax Act apply.
According to chartered accountant Pratibha Goyal, “No interest will be charged under 234A due to the extension of the deadline, but if the advance tax is not paid on time, then interest will be payable on it under 234B and 234C.”
The fear of 234A has become a myth
Mumbai-based chartered accountant Chirag Chauhan says that the talk of interest being charged on filing returns after July 31 is just a misconception. “Section 234A is applicable only when you file the return after the due date. But when the government itself has extended the date, there is no question of late filing.”
However, he also says that if the advance tax is not paid on time, then interest will definitely be charged on it and it is already applicable.
234A, 234B and 234C: What is the difference between them
Section 234A is applicable in case a person files the return late. In this, interest is payable at the rate of 1 per cent per month.[Related-Posts]
Section 234B is applicable in cases where the taxpayer has paid less than 90% of the advance tax by March 31.
Section 234C is applicable when the prescribed installments of advance tax are not paid on time. Usually these installments are due in June, September, December and March.
Now file ITR without fear
This time, given the relaxation in deadlines given by the government, people have got enough time to organize their documents and file returns with the correct information. If you have already deposited the advance tax, then there will be no penalty or interest on filing the return by September 15.
In such a situation, now is the time to prepare your return correctly without any hurry or panic and fulfill all the tax related responsibilities on time.
Disclaimer: This article is written for information purposes only. The facts given in it have been presented on the basis of common sources and statements of tax experts. Before taking any kind of tax decision, consult your chartered accountant or tax consultant.
