The deadline for filing Income Tax Returns (ITRs) for the financial year 2024-25 (assessment year 2025-26) is fast approaching, set for September 15, 2025. The Income Tax Department had earlier extended the deadline from July 31, 2025, to this date.

Reasons for the Initial Extension

The Central Board of Direct Taxes (CBDT) initially extended the ITR filing deadline in May 2025 due to several factors:

• Extensive changes in ITR forms: Structural and content revisions aimed at simplifying compliance, enhancing transparency, and enabling accurate reporting were introduced.
• System readiness: The changes necessitated additional time for system development, integration, and testing of corresponding utilities.
• Stakeholder concerns: The extension aimed to address concerns raised by stakeholders and provide adequate time for compliance, ensuring the integrity and accuracy of the return filing process.
• Delayed release of ITR forms: There were delays in releasing the updated ITR forms.
• Late availability of utilities: The utilities on the portal were made available later than expected.
• Issues with TDS reconciliation: Taxpayers faced issues related to TDS reconciliation.
• Form 26AS/TIS mismatches: Mismatches between Form 26AS and Taxpayer Information Summary (TIS) created complications.

Calls for Further Extension

Despite the initial extension, there are now calls for a further extension of the ITR filing deadline. The Chandigarh Chartered Accountants Taxation Association (CCATAX) has reportedly requested the tax department to provide additional time for ITR filing and tax audits for the financial year 2024-25.

Key reasons cited for this request include:

• Technical glitches: Users have reported errors, slow logins, and failures while uploading returns on the income tax e-filing portal.
• Data mismatches: Discrepancies between the Annual Information Statement (AIS) and Form 26AS have created confusion regarding tax credits, forcing taxpayers to spend extra time reconciling data.
• New ICAI reporting format: The Institute of Chartered Accountants of India (ICAI) introduced revised disclosure requirements, adding to the compliance burden.
• Server issues: Tax professionals have reported server crashes and session timeouts.

Challenges and Concerns

As of August 20, 2025, data indicates a significant shortfall in the number of returns filed compared to the previous year. This, coupled with the reported technical glitches and data mismatches, has led to concerns about the feasibility of meeting the September 15 deadline.

Consequences of Missing the Deadline

Missing the September 15 deadline can result in penalties and interest charges. Interest at a rate of 1% per month may be levied on the unpaid tax amount under Section 234A. Additionally, a late fee of up to Rs. 5,000 may be charged under Section 234F if the total income exceeds Rs. 5 lakh. Taxpayers may also lose the option to carry forward certain losses. However, even if the deadline is missed, a belated return can be filed by December 31, 2025, with applicable penalties and interest.

CBDT's Position and Way Forward

As of now, there has been no official announcement from the CBDT regarding a further extension of the deadline. Taxpayers are advised to utilize the remaining time to ensure accurate and timely submissions. Experts caution against last-minute filing, as further extensions are considered unlikely. The government is also under pressure to avoid cascading delays across the compliance calendar.