ITR Filing FY25: Income Tax Department Extends Last Date for Filing Returns | Details
The Central Board of Direct Taxes (CBDT) has announced a significant relief for taxpayers by extending the deadline for filing Income Tax Returns (ITR) for the Financial Year 2024-25 (Assessment Year 2025-26) from July 31, 2025, to September 15, 2025. This extension applies to non-audit taxpayers, including individuals, Hindu Undivided Families (HUFs), and entities not requiring an audit. The decision, detailed in CBDT Circular No. 06/2025 dated May 27, 2025, aims to ease compliance amid structural changes to ITR forms and system updates. Here’s everything you need to know about the extension, its reasons, and how to make the most of it.
Why the Deadline Was Extended
The extension stems from several factors that have delayed the ITR filing process for FY 2024-25:
- Revised ITR Forms: The Income Tax Department introduced significant structural and content changes to ITR forms for AY 2025-26, notified between April 29 and May 11, 2025. These updates, aimed at simplifying compliance and enhancing transparency, include new reporting requirements for deductions, Tax Deducted at Source (TDS) section codes, and bifurcated capital gains for pre- and post-July 23, 2024 transactions. These revisions required additional time for system development and testing.
- Delayed Utility Activation: The e-filing utilities for ITR forms were not fully activated until June 2025 due to ongoing system integration and testing. This delay limited the filing window, as taxpayers needed updated tools to file accurately.
- TDS Credit Reflection: TDS statements, due by May 31, 2025, typically reflect in Form 26AS and AIS/TIS by early June, leaving a short window for taxpayers to verify credits. The extension ensures sufficient time for accurate TDS reconciliation.
- High Court Directive: The High Court issued an order addressing taxpayer challenges, directing the Income Tax Department to extend the deadline to ensure a fair and hassle-free filing process.
These factors collectively prompted the CBDT to provide taxpayers with an additional 45 days to file their returns without penalties.
Key Details of the Extension
- New Deadline: The due date for filing ITRs for non-audit cases (under Section 139(1) of the Income Tax Act) is now September 15, 2025, instead of July 31, 2025.
- Who It Applies To: The extension covers individuals, HUFs, Associations of Persons (AOPs), Bodies of Individuals (BOIs), and other non-audit taxpayers with income up to ₹50 lakh (for ITR-1 and ITR-4 filers).
- Audit Cases: For businesses requiring audits, the deadline remains November 15, 2025, with transfer pricing reports due by November 30, 2025. Tax audit reports must be filed by September 30, 2025.
- Belated Returns: If you miss the September 15 deadline, you can file a belated return by December 31, 2025, but this incurs penalties under Section 234F (up to ₹5,000 for income above ₹5 lakh, ₹1,000 for income up to ₹1 lakh) and interest under Sections 234A, 234B, and 234C.
- Updated Returns: The Finance Act 2025 extends the window for filing updated returns (ITR-U) to four years from the end of the assessment year, meaning AY 2025-26 updated returns can be filed until March 31, 2030.
ITR Forms for FY 2024-25
The Income Tax Department has notified all seven ITR forms for AY 2025-26, tailored to different taxpayer categories:
- ITR-1 (Sahaj): For resident individuals with income up to ₹50 lakh from salary, one house property, or other sources. Notified on April 29, 2025.
- ITR-2: For individuals or HUFs not eligible for ITR-1, including those with capital gains. Notified on May 3, 2025.
- ITR-3: For individuals and HUFs with business or professional income requiring detailed books of accounts. Notified on April 30, 2025.
- ITR-4 (Sugam): For resident individuals, HUFs, or firms (other than LLPs) with income up to ₹50 lakh under presumptive taxation (Sections 44AD, 44ADA, 44AE). Notified on April 29, 2025.
- ITR-5: For firms, LLPs, and cooperative societies. Notified on May 1, 2025.
- ITR-6: For companies registered under the Companies Act. Notified on May 1, 2025.
- ITR-7: For trusts and charitable institutions. Notified on May 11, 2025.
Excel and online utilities for ITR-1 and ITR-4 are available on the e-filing portal with prefilled data to streamline filing.
Benefits of Filing by the New Deadline
Filing your ITR by September 15, 2025, offers several advantages:
- Avoid Penalties and Interest: Timely filing prevents late fees (up to ₹5,000) and interest charges on unpaid taxes under Sections 234A, 234B, and 234C.
- Accurate Reporting: The extended period allows time to gather documents, verify TDS credits, and ensure error-free returns, reducing the risk of notices from the Income Tax Department.
- Claim Refunds: Filing early ensures prompt processing of tax refunds, especially if excess TDS or advance tax was paid.
- Loss Carryforward: Timely filing allows you to carry forward business or capital losses to offset future income, a benefit lost with belated returns.
- Financial Credibility: ITRs filed on time serve as proof of income for loan applications, visa processing, or credit card approvals, enhancing financial credibility.
How to File Your ITR
- Log In to the E-Filing Portal: Visit www.incometax.gov.in, log in, and select “e-File” > “Income Tax Returns” > “File Income Tax Return.”
- Choose the Right Form: Select the appropriate ITR form based on your income sources and taxpayer category. Use online mode for prefilled data or download Excel utilities for offline filing.
- Verify Details: Ensure personal information, income details, and TDS credits match Form 26AS and AIS/TIS.
- Submit and Verify: After filing, verify your ITR within 30 days via Aadhaar OTP, net banking, or physical verification to complete the process.
- Seek Expert Help: For complex cases, consult a chartered accountant to ensure accuracy and compliance.
Tips to Avoid Last-Minute Hassles
- File Early: Start filing in June 2025 when utilities are fully available to avoid the September rush.
- Check TDS Credits: Wait until mid-June to ensure TDS credits reflect accurately in Form 26AS.
- Use Prefilled Data: Leverage online utilities with prefilled data to minimize errors.
- Track Announcements: Stay updated via the Income Tax Department’s website or social media for any further changes.
Consequences of Missing the Deadline
Missing the September 15, 2025, deadline can lead to:
- Penalties: A late fee of ₹1,000–₹5,000 under Section 234F, depending on income.
- Interest: 1% monthly interest on unpaid taxes under Section 234A.
- Loss of Benefits: Inability to carry forward losses or claim certain deductions (e.g., Sections 80-IA, 80-IB).
- Notices: Increased scrutiny from the Income Tax Department, potentially leading to legal action or penalties up to ₹5,000 under Section 271F.
If you miss the deadline, you can file a belated return by December 31, 2025, or request condonation of delay for genuine reasons, subject to approval by the Income Tax Commissioner.
Conclusion
The extension of the ITR filing deadline to September 15, 2025, for FY 2024-25 (AY 2025-26) provides taxpayers with much-needed relief to navigate revised forms and system updates. By filing early and accurately, you can avoid penalties, claim refunds, and maintain financial credibility. Utilize the e-filing portal’s tools, verify your data, and consult professionals if needed to ensure a smooth filing experience. Stay proactive and compliant to make the most of this extended window.
Disclaimer: This blog is based on official announcements and reliable sources. Always verify details with the Income Tax Department’s website or a tax professional.
