ITR Filing Deadline Today: Hiding Income or Assets Can Lead to ₹10 Lakh Penalty and 7 Years Jail

The deadline to file Income Tax Returns (ITR) for AY 2025–26 is September 15, 2025, and tax experts are cautioning taxpayers to be extra careful while filing. Even a small mistake, or worse, concealing information, could result in severe consequences—including a penalty of up to ₹10 lakh and imprisonment for six to seven years.

If you are filing your ITR today, here are the key points you must not overlook:

Foreign Assets Must Be Declared

If you are a resident Indian but hold any foreign bank accounts, properties, shares, or insurance policies, these must be disclosed under Schedule FA in the ITR form. Similarly, if you earn any income from abroad, it must be reported under Schedule FSI, along with the country details and foreign taxes paid.

Failure to disclose such information can directly attract prosecution and heavy fines. The government has become increasingly strict in tracking offshore assets and foreign income, and hiding them could trigger serious legal action.

Disclosure of Crypto and NFTs Is Compulsory

With the rise of cryptocurrency and NFTs (Non-Fungible Tokens), tax rules have become tighter. All transactions in virtual digital assets must be declared under Schedule VDA. This includes details of purchase and sale, transaction dates, and amounts involved.

Similarly, if you hold shares in any unlisted company, you must provide complete information about the number of shares, purchase and sale details, and other relevant records. Non-compliance here could also land you in trouble.

Mandatory Reporting for High-Income Taxpayers

If your annual income exceeds ₹1 crore, you are required to furnish a complete statement of assets and liabilities. This covers properties, vehicles, jewelry, stocks, cash in hand, loans given or taken, and other financial holdings.

For company directors, additional disclosures are mandatory, such as your Director Identification Number (DIN), the company’s PAN, name, and whether it is listed or unlisted. Transparency is crucial at higher income levels, and omissions could raise red flags with the Income Tax Department.

Partnership and Bank Account Details Required

For individuals who are partners in a firm, it is essential to declare the firm’s name, PAN, status, shareholding details, and any income received in the form of salary, commission, or interest.

Additionally, taxpayers must ensure that bank account details—such as account type and IFSC code—are correctly entered. Even small clerical errors can cause delays or invalidate filings.

Don’t Forget E-Verification

Filing your ITR is not the final step—you must complete e-verification within 30 days of filing. Without this step, your ITR will be considered invalid, and you may lose the benefits of timely filing. E-verification can be done through Aadhaar OTP, net banking, or other electronic methods provided by the Income Tax portal.

The Bottom Line

ITR filing is not just about meeting deadlines; it’s about accurate and honest reporting of your financial details. From disclosing foreign assets and crypto investments to ensuring correct bank and partnership details, every piece of information matters.

Even a minor lapse could result in penalties, notices, or even criminal charges. To avoid unnecessary risks, taxpayers are advised to file their returns on time, double-check all entries, and consult a financial or tax advisor if needed.

As the deadline approaches today, remember: compliance and transparency are always safer than shortcuts