Late filing or non-filing of ITR in 2025 can result in significant penalties:
- Late Filing Fee (Section 234F): Rs. 5,000 if filed after due date but before December 31st, Rs. 10,000 thereafter
- Interest under Section 234A: 1% per month on unpaid tax amount
- Prosecution: For serious delays, imprisonment up to 7 years plus fine
Additional consequences include:
- Unable to carry forward certain losses
- Delayed tax refunds
- Difficulty in visa processing
- Problems in loan applications
To avoid penalties, file your ITR before the due date and ensure accurate reporting of all income.