New Income Tax Bill: Does Late Filing Affect Your Tax Refund? IT Department Clarifies!

Every year, the Income Tax Department sets a deadline for filing Income Tax Returns (ITR). With discussions around the new Income Tax Bill, taxpayers have raised concerns regarding possible changes. Many are worried that if they file their IT returns late, they might lose their refund.

There has been growing speculation that under the new tax bill, filing ITR after the deadline could result in no refund. Addressing these concerns, the Income Tax Department recently issued a clarification. Many taxpayers feared that delayed tax payments might lead to a loss of refunds. Officials responded to this on social media platform X (formerly Twitter), putting an end to the confusion.

What the IT Department Says:

As per current rules, individual taxpayers must file their ITR by July 31. In case of delays, they can still file their returns by December 31 with a penalty. However, the IT Department confirmed that this does not affect their refund eligibility.

The new Income Tax Bill does not introduce any changes to refund policies. Even if a taxpayer files their return late, they will still be eligible for a refund. The department reassured taxpayers that the existing tax laws remain unchanged in this regard.

Implementation of the New Bill

If approved, the new Income Tax Bill will come into effect from the financial year 2026-27. According to the Income Tax Act, 1961, Clause 263(1)(a)(ix), refunds are typically processed for those who file within the stipulated deadline. However, as per the current tax law, even those who file late returns are still eligible for refunds.