Central Board of Direct Taxes (CBDT) has announced an extension of the Income Tax Return (ITR) filing deadline for Assessment Year (AY) 2025-26, pushing the due date from July 31, 2025, to September 15, 2025.
This decision comes as a major relief for taxpayers, particularly salaried individuals and businesses, who now have additional time to file their returns without penalties.
The extension was necessitated due to significant revisions in ITR forms, system development requirements, and the need for accurate reflection of Tax Deducted at Source (TDS) credits.
The move aims to ensure a smoother and more efficient filing experience for taxpayers across India.
Why Was the Income Tax Return Deadline Extended?
The CBDT cited multiple reasons for the extension, primarily focusing on system enhancements and compliance facilitation.
The newly introduced ITR forms for AY 2025-26 underwent structural and content revisions, requiring additional time for integration and testing.
TDS statement credits are due for filing by May 31, 2025, ensuring timely submission of tax deductions.
These credits will begin reflecting in early June, enabling taxpayers to verify and reconcile their filings accurately.
Without the extension, taxpayers would have had a limited window to file their returns accurately.
The government aims to simplify compliance, enhance transparency, and enable precise income reporting through these changes.
Who Benefits from the Extension?
The deadline extension primarily benefits individual taxpayers, Hindu Undivided Families (HUFs), and entities that do not require an audit.
Taxpayers now have 46 extra days to submit their returns, giving them more time to ensure accuracy.
By filing within the extended deadline, they can avoid late penalties of up to ₹5,000.
Taxpayers with long-term capital gains (LTCG) of up to ₹1.25 lakh from listed equities can now file under ITR-1 and ITR-4, simplifying the process.
Previously, the government required them to file under ITR-2, but the new provisions offer a major compliance relief by simplifying the process.
This change simplifies the filing process for many investors.
Government’s Push for Digital Tax Compliance
The extension aligns with the government’s broader efforts to modernize and digitize the tax administration system.
The government is investing heavily in technology and automation to streamline processes and enhance the overall taxpayer experience.
The CBDT aimed to ensure a smooth and convenient filing experience, emphasizing that the extension was not merely procedural but intended to assist taxpayers.
Chartered accountants and industry bodies voiced concerns about the compressed timeline for filing under the newly formatted returns, citing challenges in compliance.
In response, the government took action to extend the deadline, ensuring taxpayers have adequate time to file accurately.
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