Filing an Income Tax Return in India can catch many off guard, especially for Non-Resident Indians (NRIs). Managing jobs overseas, multiple bank accounts, and paperwork from different countries often makes meeting the deadline a daunting task. Even after paying TDS on your NRO(Non-Resident Ordinary) fixed deposits or rental income in India, you may suddenly realize the ITR filing deadline has already passed, making late ITR filing necessary and creating stress along with potential penalties.
So does this mean your tax compliance ends there? Not at all. The Income Tax Act provides a provision for filing a Belated Return under Section 139(4). This allows NRIs to regularize their tax filings even after missing the original deadline. However, this second chance comes with a cost, including late ITR filing fees, interest, and the loss of certain benefits.
For NRIs, late ITR filing can also delay refunds, complicate financial planning, and increase scrutiny from tax authorities. In this guide, we will explain what a belated return is, the penalties and limitations involved, and provide step-by-step instructions to file your ITR online or offline.
What is a Belated Return for NRIs?
A belated return is an ITR filed after the original deadline under Section 139(1). For FY 2024–25 (AY 2025–26):
- The due date for most NRIs (without audit requirement) was 15 September 2025.
- If missed, the return can still be filed until 31 December 2025 under Section 139(4).
For NRIs, this is particularly important because failing to file can impact not only taxes but also banking compliance, remittances, and even future visa or loan applications in India.
Key Features of Belated Return for NRIs
| Particulars | Belated Return (Sec 139(4)) |
| Applicable to | NRIs, OCIs, Residents who missed Sec 139(1) deadline |
| Last date to file | 31 Dec of relevant AY (31 Dec 2025 for FY 2024–25) |
| Penalty (Sec 234F) | ₹1,000 (income ≤ ₹5L), ₹5,000 (income > ₹5L) |
| Interest (Sec 234A/B/C) | 1% per month on unpaid tax |
| Carry forward of losses | Not allowed (except house property loss) |
| Tax regime option | Only new regime permitted |
| Revision allowed | Yes, up to 31 Dec 2025 |
Penalty and Interest for Late Filing of ITR
Filing an Income Tax Return after the due date triggers certain penalties and interest under the Income Tax Act. NRIs should be especially aware, as delays can increase costs and compliance risks.
1. Late Fee – Section 234F
Depending on total income, a late ITR filing fee applies as follows:
- Income above ₹5 lakh: ₹5,000
- Income ₹5 lakh or below: ₹1,000
- Income below the exemption limit: No fee
2. Interest on Unpaid Tax – Section 234A
Interest is charged at 1% per month (or part of a month) on the unpaid tax from the original due date till the date of filing.
For instance:
Suppose an NRI earns ₹12 lakh in India from rent and capital gains, leading to a tax liability of ₹2,00,000. If the return is filed in December 2025 instead of the original due date of 15 September 2025, the following extra costs apply:
- Interest (Section 234A): ₹2,00,000 × 1% × 3 months = ₹6,000
- Late Fee (Section 234F): ₹5,000
- Total Extra Cost: ₹11,000
This demonstrates how late ITR filing can significantly increase costs.
3. Legal Context
- Section 139(4): Allows belated filing.
- Sections 234A, 234B, 234C: Impose interest and fees for late income tax return filing or late payment of taxes
- Section 271F: Non-filing of ITR can attract notices or penalties.
Key Takeaway for NRIs: Even if you miss the original deadline, filing a belated return is better than non-filing, as it helps maintain compliance, ensures refund claims, and avoids escalating penalties or legal complications.
Consequences of Non-Filing (Even After Belated Deadline)
Missing the belated return deadline may lead to:
- Prosecution under Section 276CC (if tax liability > ₹25,000)
- Penalty notices and additional interest
- Refund delays or denial
- Visa or loan complications
Tip: Filing belated is always better than non-filing.
Limitations of a Belated Return
- Interest: Applicable under Sections 234A, 234B, and 234C on any unpaid tax.
- Restriction on Carrying Forward Losses: Business and capital losses cannot be carried forward. Losses from house property can still be carried forward even if the return is filed late.
- Inability to Opt for Old Regime: If the original due date is missed, you cannot choose the old tax regime. Belated returns can only be filed under the new regime, even if Form 10-IEA was submitted earlier.
- Notice Risk: Filing late may trigger notices from the Income Tax Department, causing stress and potential complications.
- Refund Delays: Any eligible refunds may take longer to process compared to on-time filing.
How NRIs Can File Belated Returns
Even if you missed the original ITR deadline, NRIs can still file a belated return online or offline to stay compliant with Indian tax laws.
Online Method
Filing online is fast, secure, and convenient. Follow these steps:
- Log in to your e-filing account.
- Navigate: e-File → Income Tax Returns → File Income Tax Return.
- Select the relevant Assessment Year.
- Choose filing mode as Online and click Start new filing.
- Select your status (individual, HUF, etc.).
- Choose the applicable ITR form.
- Verify your personal information.
- In the filing section, select 139(4) – Belated Return.
- Fill in all income details, deductions, and pay tax/late fees.
- Submit and e-verify using Aadhaar OTP, Netbanking, or other methods.
Offline Method
For those who prefer offline filing:
- Download the ITR Offline Utility from the Income Tax portal.
- Prepare the return using the utility and generate a .json file.
- Upload the .json file on the portal.
- Verify the return via Aadhaar OTP, Net banking, or by sending a signed ITR-V to CPC (Central Processing Centre).
If this process seems overwhelming, don’t worry! We have an experienced CA with 8+ years specializing in NRI taxation. Avoid paying double taxation through DTAA and contact a CA now to get expert guidance and stay stress-free.
Also read: ITR Filing for NRI 2025: Everything You Need to Know to get a complete step-by-step guide and avoid penalties.
What Happens If You Miss the 31 December Deadline?
Even if you miss the 31 December 2025 deadline for filing a belated return, there is still an option to file late. In such cases, you can apply for condonation of delay under Section 119(2)(b), requesting the Income Tax Commissioner or the prescribed authority to permit filing while providing a valid reason for the delay.
Approval is generally considered if:
- The claim is genuine and correct.
- If filing was missed due to genuine hardship.
- A refund arises due to excess TDS, advance tax, or self-assessment tax.
Note: Tax assessment by another person under the Income Tax Act is not possible.
Important points to remember:
- Any taxes due for FY 2024–25 must be paid along with interest under Sections 234A, 234B, and 234C, even if the return is delayed.
- Non-filing may trigger Section 271F, with penalties up to ₹5,000. A valid explanation may result in waiver of the penalty.
- Continued non-filing can lead to legal action, notices, or in extreme cases, prosecution under Section 276CC with imprisonment up to seven years.
What to Do If You Receive a Late Payment Notice
- Examine the notice carefully.
- Gather relevant documents: ITR, Form 16, Form 26AS, bank statements, and proof of investments.
- Pay attention to response deadlines to avoid additional penalties.
- Organize and submit all supporting documents.
- Consult a tax professional if needed.
- If responding online, track submission and ensure acknowledgment receipt.
Original vs Belated Return – Quick Comparison
| Feature | Original Return | Belated Return |
| Filing window | Up to 15 Sep 2025 | Up to 31 Dec 2025 |
| Late Fee | Nil | ₹1,000 – ₹5,000 |
| Interest | Nil | 1% per month on tax due |
| Carry forward losses | Allowed | Not allowed (except house property) |
| Tax regime | Old or New | Only New regime |
| Refund processing | Standard timeline | May be delayed |
Final Word
Even if you miss the original ITR deadline, filing a belated return is crucial for NRIs to stay compliant, avoid legal complications, and claim any eligible refunds. Delaying or neglecting this step can result in paying extra penalties, interest, or even facing the risk of double taxation.
Don’t miss out on your rightful refunds or pay tax twice! Click here to connect with our expert CA, a specialist in NRI taxation with over 8 years of experience, who can guide you step-by-step and ensure your tax filings are accurate and hassle-free.
Watch this quick guide on filing your Belated ITR before it’s too late!
Frequently Asked Questions
Q1. What is late ITR filing?
Late ITR filing refers to submitting your Income Tax Return after the original due date under Section 139(1). So for FY 2024–25 (AY 2025–26), the income tax return filing last date for most NRIs was 15 September 2025.
Q2. What is the penalty for late income tax return filing?
The penalty for late income tax return filing depends on your total income: ₹5,000 if income exceeds ₹5 lakh, and ₹1,000 if income is ₹5 lakh or below. Interest is also charged at 1% per month on unpaid tax.
Q3. How do I avoid ITR filing mistakes when filing late?
Even during late ITR filing, ensure all income, deductions, and taxes paid are correctly reported. Common ITR filing mistakes include mismatched TDS, incorrect bank details, or missing income sources. Verifying Form 26AS can help avoid errors.
Q4. Can I file an ITR after the due date?
Yes, NRIs can file a belated return under Section 139(4) until 31 December 2025 for FY 2024–25. Filing after this date may require requesting condonation of delay under Section 119(2)(b).
Q5. What is the ITR late filing penalty for AY 2024–25?
For FY 2024–25, the ITR late filing penalty for AY 2024–25 is ₹1,000 for income ≤ ₹5 lakh and ₹5,000 for income > ₹5 lakh. Interest of 1% per month is also applicable on unpaid taxes.
Q6. What happens if I miss the income tax return filing last date?
If you miss the ITR deadline, first, you may incur a late filing fee. Next, interest can apply on unpaid taxes. Additionally, refunds may get delayed, and banking, loan, or visa processes could be affected. However, filing belatedly is still better than not filing at all.
Q7. Can I still claim refunds if I file late?
Yes, even during late ITR filing, you can claim eligible refunds, though processing may be slower compared to on-time filing.
Q8. What is the ITR last date for NRIs?
The ITR last date for NRIs without audit requirement was 15 September 2025 for FY 2024–25. Belated returns can be filed until 31 December 2025.
Q9. What is the last date for ITR 2025?
For FY 2024–25 (AY 2025–26), the last date for ITR 2025 filing for most NRIs was 15 September 2025. Belated returns are allowed up to 31 December 2025.
Q10. Can I file an ITR after 31st July?
Yes, late ITR filing is allowed after 31st July and up to 31 December 2025 under Section 139(4) for FY 2024–25. However, penalties and interest will apply.
Q11. What is the last date to process ITR?
The standard processing of ITR begins once it is filed and verified. For late ITR filing, refunds and processing may take longer than usual.
Q12. What happens if I miss the ITR deadline?
Missing the ITR last date leads to a penalty for late income tax return filing, interest charges, delayed refunds, restricted loss carry forward, and higher scrutiny from tax authorities. Filing belatedly is always better than non-filing.
Q13. Can I file a 2-year-old ITR now?
For ITRs beyond the belated filing window, you may need to apply under Section 119(2)(b) for late ITR filing approval, providing valid reasons for delay.
Q14. How to minimize penalties and errors during late filing?
- Pay taxes due along with interest under Sections 234A/B/C
- Double-check ITR filing mistakes and match with Form 26AS
- File online for instant acknowledgment
- Seek guidance from a CA specialized in NRI taxation to avoid penalty for late income tax return filing
Q15. Is it mandatory to file under the new tax regime for belated returns?
Yes, while filing a late ITR filing, only the new tax regime can be opted for. Old regime selection is not allowed after the original due date.
