Introduction
The Central Board of Direct Taxes (CBDT), under the Ministry of Finance, Government of India, has extended the last date for filing Income Tax Returns (ITRs) for the Assessment Year (AY) 2025–26. Initially set for July 31, 2025, the deadline has now been moved to September 15, 2025, bringing relief to millions of taxpayers, Chartered Accountants, and financial professionals across India.
This extension was officially communicated through a press release on the Press Information Bureau’s website, citing multiple logistical and procedural reasons.
Also Read: Benefits of Return ITR
Why Was the ITR Filing Deadline Extended?
1. Revision in ITR Forms for AY 2025–26
The CBDT has implemented major structural changes in the Income Tax Return forms for this assessment year. These changes are aimed at:
- Simplifying the filing process
- Enhancing accuracy in tax disclosures
- Promoting greater transparency and compliance
- Reducing instances of misreporting
Due to these changes, both taxpayers and software providers need more time to adapt and ensure error-free filing.
2. Software and Utility Readiness
The new forms require backend system upgrades, which include:
- Updating the income tax e-filing portal
- Creating compatible offline and online utility tools
- Integrating third-party software providers with updated APIs
To avoid glitches and ensure a smooth experience for taxpayers, the additional time is critical.
3. Reflection of TDS in Form 26AS
For salaried and other taxpayers, Tax Deducted at Source (TDS) plays a crucial role in return calculation. Since TDS statements from deductors are due by May 31, 2025, they usually reflect in Form 26AS and Annual Information Statement (AIS) by mid-June.
By extending the due date to September 15, the CBDT is allowing:
- Time for TDS statements to be filed and processed
- Reflection of accurate tax credits in taxpayer accounts
- Prevention of mismatch errors during filing
Also Read: Can We Change Tax Regime While Filing ITR
Who Benefits from This Extension?
1. Individual Taxpayers
Primarily, salaried employees and small business owners who usually wait for Form 16 and TDS credits can now file returns with more confidence and less rush.
2. Freelancers & Gig Workers
Freelancers, especially those using the presumptive income schemes under ITR-3 or ITR-4, can now ensure proper bookkeeping before filing.
3. Senior Citizens & Pensioners
The extension helps non-tech-savvy senior citizens avoid last-minute filing errors and consult professionals without time pressure.
4. Tax Professionals & CAs
Tax professionals, chartered accountants, and return preparers now have more time to:
- Handle a larger number of clients
- Adapt to the new ITR form structure
- Ensure compliance with the latest tax norms
Also Read: ITR Status in India
What Are the New ITR Form Changes in AY 2025–26?
While the full official forms are available on the income tax portal, here are some key changes:
1. Unified Reporting
Earlier, different ITRs had different fields for similar disclosures. The new forms aim to consolidate these and remove duplication.
2. Improved Asset & Liability Reporting
High-income individuals will need to disclose more granular details of assets and liabilities.
3. Digital Asset Reporting
With the rise in crypto and virtual digital asset transactions, ITRs now include fields for income or losses arising from them.
4. Better Disclosure of Foreign Assets
NRIs and residents with foreign income or assets will see clearer sections for such disclosures.
Also Read: Documents Required for Income Tax Return
How Does This Impact the Overall Compliance Ecosystem?
1. Promotes Voluntary Compliance
A relaxed deadline boosts voluntary tax compliance and reduces the need for rectification or penalty proceedings later.
2. Reduces Technical Glitches
Every year, the income tax portal experiences peak traffic in July. Spreading the load across a longer period helps prevent outages and server issues.
3. Facilitates Data Reconciliation
Taxpayers can now thoroughly check their:
- Form 26AS
- AIS
- TIS (Taxpayer Information Summary)
…and ensure their filed returns match department records.
Also Read: Income Tax e-filing
Will There Be Further Extensions?
While the government has not indicated any further extension beyond September 15, it is always subject to:
- System readiness
- Portal stability
- Representations from professional bodies like the ICAI
Hence, taxpayers are advised not to wait till the last moment and complete filings once the necessary forms and utilities are available.
Also Read: Income Tax Login
What Happens If You Miss the September 15 Deadline?
Missing the extended ITR filing date may lead to:
- Late Filing Penalty under Section 234F (₹1,000 to ₹5,000 depending on income level)
- Loss of Interest Deductions under Sections like 24(b)
- Inability to Carry Forward Losses
- Increased Risk of Scrutiny
So even though the extension provides breathing space, timely filing is still critical.
Also Read: How to Save Tax in India?
Step-by-Step Guide for Filing ITR for AY 2025–26
To help taxpayers take advantage of the extended deadline, here’s a step-by-step process:
Step 1: Collect Required Documents
- Form 16 from employer
- TDS certificates (Form 16A)
- Interest statements from banks
- Capital gains statements from brokers
- Rent receipts for HRA
- Investment proofs (ELSS, PPF, LIC, etc.)
Step 2: Check Tax Credit Statement
Download Form 26AS, AIS, and TIS from the Income Tax Portal.
Step 3: Select the Right ITR Form
Choose the correct form based on your income sources:
- ITR-1: Salary, pension, one house, no capital gains
- ITR-2: Capital gains or foreign assets
- ITR-3: Business/profession income
- ITR-4: Presumptive taxation scheme
Step 4: Fill ITR Using Utilities
Use:
- Online e-filing option
- Offline Excel or JSON utilities (updated for AY 2025–26)
Step 5: Validate and Submit
After filling:
- Verify deductions
- Match TDS
- Check bank account linking for refunds
- Submit and e-verify within 30 days
Final Thoughts: A Welcome Relief for Taxpayers
The CBDT’s extension of the ITR deadline to September 15, 2025, is a timely and thoughtful move that reflects a taxpayer-friendly approach. Given the overhaul in ITR forms and the technical infrastructure required, this buffer period will help in:
- Error-free submissions
- Greater compliance
- Better taxpayer experience
Taxpayers should treat this as an opportunity to prepare and file accurately, rather than waiting till the last minute.
Also Read: Which ITR to File?
FAQs on ITR Extension for AY 2025–26
Q1. Is this extension applicable to all taxpayers?
Yes, the extension applies to individuals, HUFs, and non-audit businesses not subject to tax audit.
Q2. Will tax audit and transfer pricing deadlines also be extended?
Not as of now. Only the non-audit ITR due date has been extended. Deadlines under Sections 44AB or 92E will be announced separately if needed.
Q3. Can I revise my return after filing before September 15?
Yes, you can revise your ITR later, but ensure initial accuracy to avoid interest or refund delays.
Q4. Is late filing fee waived with this extension?
Yes. If you file on or before September 15, no late fee under Section 234F will apply.