Importance of timely ITR filling assessment year 25-26

Filing your Income Tax Return (ITR) on time for the Assessment Year (AY) 2025–26 (which corresponds to income earned during the Financial Year 2024–25) is important for several legal, financial, and practical reasons. Here's why timely ITR filing matters:

✅ 1. Avoid Penalties
Late Filing Fee (Section 234F):

Up to ₹5,000 if filed after the due date but before December 31.

₹1,000 if your income is below ₹5 lakh.

Interest on Tax Due (Sections 234A, 234B, 234C):

Interest accrues on unpaid tax amounts, which increases the tax burden.

✅ 2. Carry Forward Losses
Only if you file on or before the due date can you carry forward losses (like capital losses or business losses) to set off against future income.

✅ 3. Faster Refund Processing
Timely filing results in quicker processing of refunds for excess tax deducted (TDS/TCS) or advance tax payments.

✅ 4. Legal Compliance
Filing ITR on time fulfills your legal obligation as a taxpayer and ensures you stay compliant with tax laws, reducing the chance of receiving notices from the Income Tax Department.

✅ 5. Loan & Visa Applications
Banks and financial institutions often require ITRs of the past 2–3 years for loan approval.

Visa applications for countries like the U.S., U.K., Canada, etc., often ask for ITR receipts as proof of income.

✅ 6. Proof of Income
For self-employed individuals or those with no formal salary slips, an ITR is a reliable document to show income and tax paid.

✅ 7. Avoid Scrutiny
Late or missed returns can raise red flags, potentially leading to audits or tax scrutiny, even if you have no tax liability.

? Important Dates for AY 2025–26
For individuals not requiring audit: Likely July 31, 2025

With audit requirement: Likely October 31, 2025
(Exact dates to be confirmed by the Income Tax Department)