ITR Filing News 2025 Updates: Only Three Days To Deadline — Process, Penalty, Extension News And More

After several tax bodies requested an extension of the due date of Sept. 15, Bhartruhari Mahatab, BJP MP from Cuttack, and PP Chaudhary, BJP MP from Pali, Rajasthan, have written letters to Finance Minister Nirmala Sitharaman.

They cited festivities, technical glitches and natural calamities as the reasons for the delayed ITR return.

Below are some steps that one can use to leverage AI to file their income tax returns.

•  Select your preferred AI tool, such as ChatGPT, Grok, or Google Gemini.

•  Try to use the model that has access to real-time information for an accurate understanding of rules.

•  As AI can sometimes throw up inaccurate results, it is best to share specific tax rules or changes with it and ask for guidance based on the information shared by you. This will ensure accuracy.

•  If you are a salaried individual, you can share the information from the tax department's website: https://www.incometax.gov.in/iec/foportal/help/individual/return-applicable-1

• Give AI this prompt: ‘Understand these rules and regulations and guide me through my ITR process.'

• Once these steps are done, AI will likely ask for information, such as whether you are salaried, your income sources and the documents you already have.

• This will help you gauge what documents or other information you need before starting to file your ITR. These likely include Form 16, PAN card, Form 26AS, etc.

•  Based on information in ‘step 4’ and your personal details, you can ask AI which ITR form you should choose. You can also ask what deductions and exemptions you qualify for.

• Then, give this prompt: 'Steps To File ITR Under Form (whatever you are eligible for).'

• The AI bot will likely share the tax department’s ITR portal with you and outline the steps for your ITR process.

Under Section 80D, premiums paid for health insurance policies also qualify for tax benefits. Taxpayers can claim deductions on premium payments up to Rs 25,000 for self and family, and an additional amount of Rs 25,000 for parents (Rs 50,000 if they are senior citizens).

Beyond tax savings, this also ensures financial protection against medical emergencies. Investments made with tax planning in mind help you save more and secure your financial future. Instead of rushing at the last minute before filing your ITR, create an investment plan early in the financial year. By balancing safety, growth and tax efficiency, you can reduce your burden and steadily build wealth.

ITR Filing 2025: Have you filed your income tax return (ITR) and e-verified immediately, but now awaiting refund from the tax authorities? However, even after several weeks, the Income Tax Department has not given any update on refunds. If you are facing this situation, it’s not unusual.

Income tax refunds could be stuck or delayed due to several reasons. Generally, it takes around four to five weeks for tax refunds, if any, to be credited to the account of the taxpayer after the ITR filing. For FY25, the ITR filing deadline for taxpayers who don’t need a tax audit has been extended to Sept. 15.  

However, even after filing your ITR within the deadline, it does not ensure quick refunds. Many taxpayers receive their money in 2-4 weeks, while others receive it in a matter of days. The delay in refunds, even after filing the ITR with due diligence, could be a result of several factors.

Read story at the link below.

Late Filing Penalty

If you fail to file your ITR by the due date of Sept. 15, you could face a penalty under Section 234F of the Income Tax Act, 1961. A delay could attract a late fee of Rs 5,000. However, if your total income is below Rs 5 lakh, the penalty is limited to Rs 1,000. It’s advisable to file your ITR within the due date and avoid the penalties.

Interest On Tax Due

If you owe taxes and fail to file the return, interest will be levied on the unpaid tax amount under Section 234A of the I-T Act. A simple interest of 1% per month (or part of a month) will be charged on the unpaid tax, calculated from the return filing due date until the actual filing date.

Prosecution Risk

If you deliberately fail to file your ITR despite receiving notices from the Income Tax Department, the assessing officer can initiate prosecution proceedings. This may lead to imprisonment ranging from three months to two years, along with a fine. If the unpaid tax amount is substantial, the jail term can extend up to seven years.

Losses Can't Be Carried Forward

Failing to file your return on time means you lose the ability to carry forward most losses, such as those from business or capital gains, to future years. The only exception is losses from house property, which can still be carried forward even if the return is filed late.

Trouble In Getting Loans Or Visas

ITR filings are often used by banks and financial institutions to assess your financial health. Similarly, foreign consulates sometimes ask for ITR proofs during visa processing. Not filing can become a roadblock if you're planning to take a loan or travel abroad.

Belated Return

If you miss the initial deadline, you can still file a belated return. But this must be done before Dec. 31 of the assessment year. Note that belated returns attract penalties and don’t allow you to revise the return later.

Filing your ITR on time is crucial, not just to avoid penalties, but also to stay financially compliant. Even if your income is below the taxable limit, filing returns can help build a good financial record.