The Income Tax Return (ITR) filing due date for the assessment year (AY) 2025-26 ended on September 16 for taxpayers whose accounts did not require audit. The ITR filing date for AY 2025-26 (FY 2024-25) was extended twice this year – initially by 46 days, till September 15, and later by another 24 hours, till September 16 midnight.
With the usual ITR filing deadline now over, many individual taxpayers wonder whether they can still claim the tax refunds due to them through a belated tax return. A belated return is filed after the original ITR due date is over but before 90 days of the end of the financial year, which is December 31st.
As the December 31 deadline for filing belated income tax returns approaches, many taxpayers might be looking to complete the ITR filing process. A large number of people, including many salaried individuals, believe that they won’t get the refunds as they missed the usual July 31 deadline.
The truth, however, is reassuring. Taxpayers do get refunds even if they file a belated ITR.
But they also face a few consequences that can reduce the amount they expect to receive or delay the payment. The biggest among these is the loss of refund interest, which many people discover only after the refund is credited.
Refunds are paid, but belated filers lose interest
The Income Tax Act allows refunds to be issued on belated ITRs, but the rules change when it comes to interest on refunds. Under Section 244A, refund interest is calculated from 1st April of the assessment year only if the return is filed on time.
If the return is filed late, the interest is paid only from the date of filing, not from April 1. This means late filers lose months of interest—even if the government has been holding their excess TDS throughout the year.
Why many taxpayers still worry their refund will be denied
The belief that “belated ITR = no refund” comes from earlier confusion and lack of clarity. Taxpayers also get anxious because:
-Refunds for belated returns take longer
-Refund tracking often shows “under processing” for weeks
-AIS or TDS mismatches delay or reduce refunds
-Some refunds get adjusted against old tax demands, tax experts claim.
But none of this stops a taxpayer from getting the refund itself.
It only affects timelines and the interest component.
Penalties and charges for belated ITR filing
While filing a belated return keeps the refund intact, taxpayers must be aware of the costs attached:
- Late fee under Section 234F
Rs 5,000 late fee
Rs 1,000 if total income is below Rs 5 lakh
- Interest under Section 234A
Interest on tax dues (if any) applies at 1% per month from the due date until you file.
However, if you have no unpaid tax (only refund due), this interest may not apply.
- Loss of refund interest under Section 244A
This is the biggest financial impact and is non-reversible.
- Inability to carry forward certain losses
Belated ITRs cannot carry forward losses from – House property, Capital gains, and Business income. This is a disadvantage for taxpayers with investments.
Other issues that belated filers commonly face
Filing late increases the chances of:
- AIS or Form 26AS mismatches
If income or TDS data doesn’t match, refunds get held back for additional checks.
- Refund adjustment against old demands
Even small past mismatches can wipe out part of your refund.
- Refund failure due to unvalidated bank account
Many taxpayers forget to validate their bank account before filing.
- Limited time for corrections
Belated returns offer less room for revisions and corrections compared to timely ITRs.
Steps taxpayers must follow before December 31
To ensure a smooth refund for belated ITRs, taxpayers should:
- Check AIS, Form 26AS and Form 16 carefully
Make sure all income and TDS entries match. Mismatch is the biggest reason for refund delays.
- Pre-validate your bank account
Refunds won’t be issued without this step.
- Verify the ITR immediately after filing
Refund processing starts only after verification.
- Reconfirm deductions and exemptions
Late filers often forget to claim: 80C investments, Health insurance premium (80D), NPS contributions (80CCD), Home loan interest, Education fees
Missing these can cut your refund.
- File well before December 31
Delaying till the last day increases refund processing time.
How to check ITR refund status
Taxpayers can check their refund status through two platforms:
- Income Tax Portal
e-File → Income Tax Returns → View Filed Returns → Refund Status
- TIN-NSDL Refund Status Tool
Shows whether the refund is:
Issued
Under process
Failed
Adjusted
Belated filers should be prepared for slightly longer timelines.
The bottom line
Missing the July 31 deadline does not stop your refund.
Belated ITRs still qualify for refunds—but the interest loss is real, and the processing often takes longer. With the December 31 belated ITR deadline approaching, taxpayers expecting refunds should file as early as possible, validate their bank details, and double-check their AIS and TDS data.
