By Sneha Kulkarni

Copyright indiatimes

Did you claim income tax exemption for HRA, home loan interest and under Section 80C via your employer because you found that the Old Tax regime (OTR) was beneficial for you for FY2024-25? If yes, you will become liable to pay the tax so saved, plus heavy interest and penalty if you miss the ITR filing deadline of September 15, 2025. Here’s why.Income Tax GuideIncome Tax Slabs FY 2025-26Income Tax Calculator 2025New Income Tax Bill 2025Let us assume you are a salaried employee and had claimed income tax exemption for HRA, interest paid on home loan or any of the other exemptions/deductions available under the old tax regime via your employer for FY2024-25. Let us further assume that as per your plan, your total tax payable under OTR, after claiming eligible exemptions/deductions, was lower than that under the new tax regime for FY2024-25.ITR can still be filed after September 15, 2025 with payment of late fee and losing some benefits To claim the above mentioned exemptions/deductions via your employer you would have had to submit proofs for the exemptions/deductions to your employer so that the employer deducted lower TDS from your salary. Claiming these exemptions/deductions under the old tax regime via employer would have been possible only if you had opted for this regime for the purpose of TDS from salary. Let us assume that your employer deducted lower TDS, as is the normal process, from your salary after allowing for the exemptions/deductions claimed as above under the OTR.In such a situation, do remember that the exemptions, deductions under the old tax regime are available to you only if you claim the same in your income tax return. Further, filing your ITR under the old tax regime (OTR) is allowed only within the due date which is September 15, 2025 for FY2024-25. Therefore, if you miss filing your ITR by the end of day today i.e. Sept 15, 2025, you will not be able to claim any of the above mentioned exemptions/deductions as you would only be left with the option of filing belated ITR under new tax regime. As a result, you would become liable to pay the tax equal to the short deduction of TDS, plus the interest on it along with penalty.Income tax portal not working? Check what tax department said as internet flooded with complaintsIn essence, income tax equal to the exemption claimed via employer (via lower TDS) will become payable.Explaining the situation, CA Hitesh Jain, Partner Direct Tax, N. A. Shah Associates LLP, says, “If you file my ITR after the September 15, 2025 deadline, will you be able to claim and get the HRA exemption showing in your Form 16? Let us presume, as a taxpayer, you get HRA as part of your salary from your employer and you have claimed HRA tax exemption by submitting requisite proofs to your employer. Further, your employer has allowed the exemption and shown the same in Form 16 issued to you for FY2024-25. However, you file yourmy ITR after September 15 -the due date for filing ITR for you—then will you be able to claim and get the HRA exemption showing in your Form 16?Jain says, “No, you will not be able to get that HRA and other deductions/exemptions because you cannot choose the old regime when filing a belated return.”Adding further, he says, “So even if TDS was deducted by the employer under the old regime and HRA exemption is shown in Form 16, when you file a belated return under the new tax regime, those deductions/exemptions will not be available. Your taxable income must be calculated under the new regime rules without considering HRA and other exemptions which are not allowed in the new regime.”When asked, if not, what will be the tax implication for such a person? Does he has to pay the tax and penalty both?The CA says, Here are the implications if one files return after the due date (assuming taxpayers don’t have any business income).ImplicationDetailsLoss of deductions / exemptionsCannot claim HRA exemption and other benefits which are not allowable in the new tax regime. Hence, tax liability will increase under the new tax regime.Penalty / Late feeLate filing fee u/s 234FRs5,000 if income exceeds Rs5 lakh; Rs 1,000 if income is less than Rs5 lakh.Interest for delay in filing/paymentUnder Section 234A, interest @ 1% per month or part thereof on the self-assessment tax which remains unpaid.Interest u/s 234B may also be applicable.Loss of other benefitsCarry forward of certain losses (business or capital loss) may not be allowed if return is belated. Only house property loss can be carried forwardDelayed/refunded claimsRefunds will be delayed because late returns are processed later.If you are claiming any refund then you would be eligible for refund, the interest would start from the date of filing to the date of refund.Can I file my ITR in the Old Tax Regime if I miss the September 15, 2025 deadline?Taxpayers are required to select between the Old Tax Regime and the New Tax Regime when filing their Income Tax Return (ITR). The decision to select the tax regime for a tax payer may depend on a lot of things such as deductions and exemptions available in a particular tax regime. The New Regime was introduced in the Union Budget 2020-21. From FY 2023–24 (AY 2024-25) onwards, the New Tax Regime has been made the default option. However, taxpayers have the flexibility to select or switch to the old tax regime.For this financial year (FY 24-25, AS 25-26) also, you can select the Old Tax Regime. But if you miss the September 15, 2025, deadline, can you still select the Old Tax Regime, or you need to file your ITR under the New Tax Regime? CA Hitesh Jain, Partner Direct Tax, N. A. Shah Associates LLP, says that the decision depends on whether a taxpayer has income from business or profession. He says- As per Section 115BAC, the new tax regime is the default regime for eligible taxpayers from AY 2024-25.For taxpayer not having business incomeThe option has to be selected along with the return of the original return of income {i.e. Section 139(1)} for that assessment year.For taxpayers having income from business or professionFor selecting the old tax regime, the option must be selected by filing Form 10-IEA before the due date and once the option is selected, it will be applicable for the subsequent year and no need to file again.Hence, if a taxpayer does not have business income in A.Y 2025-26, he cannot opt for the old regime if he files the return after 15th of September.