In response to structural changes in ITR forms and the need for a robust system rollout, the Central Board of Direct Taxes (CBDT) has shifted the Income Tax Return (ITR) filing deadline for FY 2024–25 (Assessment Year 2025–26) from 31 July to 15 September 2025. Announced by PIB on 27 May, this extension targets non-audit taxpayers, like salaried individuals, HUFs, and small proprietors using presumptive schemes, and reflects the government’s commitment to delivering a smoother, more accessible e-filing experience. By allowing more time for testing and integrating pre-filled forms and updates, the extension aims to uphold the integrity of compliance processes as utilities are being adapted and TDS credits reflected.
This year’s active transition to digital-first compliance is underscored by a record-breaking 7.28 crore returns filed for AY 2025–26, signaling robust trust in the e-filing platform. With improved validation protocols at the upload stage, pre-filled data, and Aadhaar OTP verification, the system now minimizes filing errors, reduces grievances, and expedites refunds, making the process notably user-friendly.
However, the extended deadline doesn’t eliminate compliance pressure. Filing after 15 September leads to late fees under Section 234F, up to ₹5,000, but capped at ₹1,000 if total income doesn’t exceed ₹5 lakh, and a 1% monthly interest on unpaid tax. Although returns can still be submitted until 31 December 2025, delayed submission may affect access to refunds, loans, or visa processing.
Adding to the narrative, tax professionals and trade bodies, including the Bhilwara Tax Bar Association, have requested further extensions, citing technical glitches, new ICAI formats, and the looming festive season as hindrances to timely compliance. While the CBDT has not granted such relief, their appeals spotlight the delicate balance between policy shifts and practical readiness.
Interestingly, the extension brings an unexpected financial benefit: taxpayers can now receive up to 33% more interest on refunds due to the delayed filing window. While a welcome advantage, this comes with the caveat that such interest is taxable and must be declared in the return.
Despite the changes in deadline, it’s important to note that self-assessment tax or advance tax must still be paid on time. Delayed tax payments, even if the ITR deadline is extended, will still attract interest under Sections 234A, 234B, and 234C. Thus, taxpayers cannot defer their tax liability just because the return deadline has been moved.