The deadline for filing Income Tax Returns (ITR) for Assessment Year 2025-26 (Financial Year 2024-25) is September 15, 2025. This extension from the original due date of July 31, 2025, was announced by the Central Board of Direct Taxes (CBDT).
Reasons for the Extension
The CBDT extended the deadline due to significant revisions made to the notified ITR forms. These revisions aim to simplify compliance, improve transparency, and enable accurate reporting. The changes necessitated additional time for system development, integration, and testing of the corresponding utilities. Furthermore, the availability of TDS credits from early June, which are filed by May 31, 2025, limited the effective window for filing returns without the extension.
Expert Opinions
Sonu Iyer, Partner and National Leader for People Advisory Services-Tax at EY India, welcomed the extension, stating that it allows taxpayers the time required to comply with enhanced reporting requirements and legislative changes.
Some experts believe that another extension is possible because the Income Tax Department has not yet issued online and offline utilities for Form 5, 6, and 7. They suggest that if these utilities are not released soon, the government may have no choice but to extend the deadline again. However, until an official announcement is made by the CBDT, the September 15, 2025, deadline remains in effect.
Changes to ITR Forms
The Income Tax Department has released seven ITR forms for the assessment year 2025-26. These forms include updates to the rules governing capital gains reporting. ITR-1 and ITR-4, intended for small and medium taxpayers, were issued on April 29, 2025, while ITR-7, designed for trusts and charitable organizations, was notified on May 9, 2025. These forms incorporate modifications, including detailed reporting of capital gains from listed equity investments.
Taxpayers are now required to provide detailed disclosures of capital gains, including bifurcation based on gains accrued before and after the Finance Act amendments effective from July 23, 2024.
Impact of Delays
The delay in releasing ITR utilities, particularly for taxpayers with capital gains, has contributed to delays in income tax refunds. Many taxpayers expecting refunds were unable to file their returns on time and, therefore, could not initiate their refund claims.
What Taxpayers Need to Do
Taxpayers should gather all necessary documents and information to file their ITR before the September 15, 2025 deadline. It is important to note that an extension of time to file is not an extension of time to pay. Taxpayers should pay any taxes owed by the original due date to avoid penalties.
Updated Return
If you miss the extended deadline of September 15, 2025, you can file an "updated return" until March 31, 2027, for AY 2024-25. However, this option comes with penalties and restrictions. Filing an updated return after the deadline typically incurs a late filing fee.
