Income Tax Return: Missed the September 16 Deadline and Facing ₹7.5 Lakh Tax? Here’s What You Should Know

Income Tax News — Missing the income tax return (ITR) filing deadline can have consequences far beyond late fees, especially under India’s revised tax framework. A recent query highlights this concern clearly: what happens if you fail to file your return by the extended deadline and are now required to pay a significantly higher tax under the new tax regime? Is there still any legal way to reduce the tax burden?

This question was raised by Mohit Jain from Ghaziabad, who could not file his income tax return by the September 16 deadline for the financial year that ended on March 31, 2025. When he attempted to file later, he discovered that under the new default tax regime, his tax liability had risen to ₹7.5 lakh. Seeking clarity, Moneycontrol consulted well-known tax expert and chartered accountant Balwant Jain to understand whether any relief was possible.

September 16 Was the Final Deadline

Traditionally, the last date to file income tax returns for individuals and Hindu Undivided Families (HUFs) is July 31 of the assessment year. However, for the financial year ending March 31, 2025, the government extended the deadline to September 16, 2025, offering taxpayers additional time to comply.

Despite this extension, missing the deadline has serious implications. According to tax expert Balwant Jain, failing to file the return within the prescribed time does not only attract late filing fees but can also restrict important choices related to tax regimes.

New Tax Regime Is Now the Default Option

One of the most important changes in recent years is that the new income tax regime has been made the default regime under Section 115BAC of the Income Tax Act. This means that if a taxpayer does not actively choose the old tax regime while filing the return—or before the due date—the system automatically places them under the new regime.

The new tax regime offers lower slab rates but removes most exemptions and deductions, such as those under Section 80C, HRA, LTA, and others. For taxpayers who rely heavily on deductions, this can result in a higher tax outgo despite lower slab rates.

Who Can Choose Between Old and New Regimes?

The flexibility to switch between the old and new tax regimes depends largely on whether the taxpayer has business income:

• Taxpayers without business income (such as salaried individuals or pensioners) are allowed to choose between the old and new tax regimes every year. However, this choice must be made at the time of filing the return or before the deadline.

• Taxpayers with business or professional income are allowed to switch from the old regime to the new regime only once. After switching, they cannot revert to the old regime as long as they continue to earn business or professional income.

In Mohit Jain’s case, although he reportedly did not have business income, he failed to select the old tax regime before or at the time of filing the return—and crucially, before the September 16 deadline.

Is There Any Way to Save Tax Now?

Unfortunately, the expert’s answer is clear and firm. Since the taxpayer did not opt for the old tax regime within the stipulated time, there is no legal option left to switch regimes after the deadline. As a result, the return must be filed under the new tax regime, and the full tax liability calculated under that regime must be paid.

Balwant Jain explained that the law does not allow retrospective selection of the old regime once the due date has passed. Even if a taxpayer would have benefited significantly from exemptions and deductions under the old system, missing the deadline closes that window entirely.

Key Takeaway for Taxpayers

This case serves as a strong reminder for taxpayers to not only file their income tax returns on time but also to carefully select the appropriate tax regime before the deadline. With the new tax regime now being the default, inaction automatically results in its application—often to the taxpayer’s disadvantage.

Taxpayers should ideally evaluate both regimes well in advance, calculate tax liability under each, and make an informed decision before filing. Consulting a tax professional ahead of deadlines can help avoid costly mistakes like this.

In summary, if you missed the September 16 deadline and did not opt for the old tax regime in time, there is no provision under current tax laws to reduce your tax liability by switching regimes later. Timely filing and informed choices remain the only effective tools for tax saving under India’s income tax system.