ITR Filing Deadline for AY 2025-26 Extended: Only 4.56 Crore Returns Filed So Far
The Central Board of Direct Taxes (CBDT) extended the Income Tax Return (ITR) filing deadline for the Assessment Year (AY) 2025-26 (Financial Year 2024-25) from July 31, 2025, to September 15, 2025, for non-audit taxpayers, providing an additional 46 days to file returns. Despite this relief, as of September 3, 2025, only 4.56 crore ITRs have been filed, with 4.31 crore verified and 3.13 crore processed, according to the Income Tax Department. This figure is significantly lower than the 7.41 crore returns filed by July 31, 2024, for the previous year, raising concerns about a potential last-minute rush. This blog explores the reasons behind the extension, the current filing status, challenges faced by taxpayers, and what you should do before the deadline.
Why Was the ITR Deadline Extended?
The CBDT announced the extension on May 27, 2025, citing several practical challenges that delayed the filing process for AY 2025-26:
- Major Structural Changes in ITR Forms: The ITR forms for AY 2025-26 underwent significant updates in structure and content to simplify compliance, enhance transparency, and ensure accurate reporting. These changes required additional time for system development and testing of e-filing utilities.
- Delayed Release of ITR Utilities: Typically released in April, utilities for ITR-1 and ITR-4 were only made available on May 29, 2025, with ITR-6 released in August and ITR-7 still pending. This late rollout left taxpayers and professionals with a compressed timeline.
- TDS Credit Delays: Tax Deducted at Source (TDS) statements, due by May 31, 2025, were reflected in Form 26AS and Annual Information Statement (AIS) only by early June, reducing the effective filing window.
- Stakeholder Feedback: Taxpayers and professionals, including the Gujarat Chamber of Commerce and Industry (GCCI) and Chandigarh Chartered Taxation Association (CCATAX), reported technical glitches, such as portal timeouts, server crashes, and data mismatches between AIS and Form 26AS, necessitating more time.
- Budget 2024 Changes: Post-budget modifications, like revised capital gains tax rules and increased reporting thresholds, added complexity to the filing process.
The extension aims to ensure a smoother filing experience and promote accurate compliance, particularly for individuals, Hindu Undivided Families (HUFs), and other non-audit taxpayers.
Current Filing Status: A Slow Pace
As of September 3, 2025, the Income Tax Department reports:
- 4.56 crore ITRs filed, compared to over 9 crore for AY 2024-25 by the previous year’s deadline.
- 4.31 crore returns verified, indicating most filers are completing the e-verification process.
- 3.13 crore returns processed, with only about 68% of filed returns cleared, highlighting processing delays.
With just 12 days left until the September 15 deadline, approximately 3 crore taxpayers are yet to file, assuming last year’s numbers as a benchmark. This slow pace has raised concerns about a potential surge in filings, which could strain the e-filing portal and lead to errors or penalties.
Challenges Faced by Taxpayers
Several factors have contributed to the sluggish filing rate:
- Technical Glitches: Taxpayers have reported login failures, session timeouts, and system errors on the e-filing portal, particularly during peak hours.
- Data Mismatches: Discrepancies between AIS and Form 26AS have caused delays in reconciling income and TDS details, leading to errors in ITR submissions.
- Monsoon Disruptions: In flood-affected areas, taxpayers have struggled to access professional services, further delaying filings.
- Compressed Timeline: The late release of utilities and TDS credit reflections left less time for preparation, especially for complex returns like ITR-2 and ITR-3.
- Lack of Awareness: Some taxpayers may be unaware of the extended deadline or waiting for a potential further extension, risking penalties.
Chartered accountants and industry bodies like CCATAX have urged the CBDT to consider another extension to October 30, 2025, citing these challenges. However, as of now, no official announcement confirms a further extension.
What Happens If You Miss the Deadline?
Missing the September 15, 2025, deadline for non-audit taxpayers can have significant consequences:
- Late Filing Fees (Section 234F):
- ₹1,000 if total taxable income is up to ₹5 lakh.
- ₹5,000 if income exceeds ₹5 lakh.
- Interest on Unpaid Tax (Section 234A): 1% per month or part thereof on unpaid tax from September 16, 2025, until the filing date.
- Loss of Benefits: Inability to carry forward certain losses (e.g., capital or business losses) for future tax savings.
- Belated Return Option: You can file a belated return by December 31, 2025, with penalties and interest.
- Updated Return (ITR-U): If you miss the December 31 deadline, you can file an updated return until March 31, 2030, but with additional tax liabilities (60% in the first year, 70% in the second year).
Additionally, late filings may delay refunds and attract scrutiny from the Income Tax Department.
Tips to File Your ITR Before September 15
To avoid penalties and ensure a smooth filing process, consider these steps:
- File Early: Don’t wait for the last minute to avoid portal slowdowns due to heavy traffic.
- Gather Documents: Collect salary slips, bank statements, Form 16, capital gains details, and other income records.
- Verify TDS Credits: Check Form 26AS and AIS for accurate TDS and income details. Address mismatches promptly.
- Choose the Right Form:
- ITR-1 (Sahaj): For salaried individuals with income up to ₹50 lakh, including long-term capital gains up to ₹1.25 lakh.
- ITR-2: For individuals/HUFs with capital gains but no business income.
- ITR-3: For individuals/HUFs with business or professional income.
- ITR-4 (Sugam): For presumptive taxation under Sections 44AD, 44ADA, or 44AE.
- E-Verify Promptly: Use Aadhaar OTP, net banking, or bank account-based verification to complete the process within 30 days of filing.
- Seek Professional Help: Consult a chartered accountant for complex returns or to resolve technical issues.
- Pay Advance Tax: Ensure advance tax payments are made by September 15, 2025, to avoid interest under Sections 234B and 234C.
Will There Be Another Extension?
Tax professionals and industry bodies argue for a further extension due to ongoing challenges, with CCATAX estimating that the current daily filing rate of over 15 lakh returns is “operationally unfeasible.” The CBDT is monitoring filing volumes, and a decision may depend on the pace in the next few days. However, no official notification has been issued as of September 5, 2025. Taxpayers are advised not to rely on a potential extension and file as soon as possible.
Conclusion
The extension of the ITR filing deadline to September 15, 2025, for AY 2025-26 was a welcome relief, but with only 4.56 crore returns filed so far, millions of taxpayers are at risk of missing the deadline. Technical glitches, delayed utilities, and data mismatches have slowed the process, but timely filing is crucial to avoid penalties, interest, and loss of tax benefits. Act now, gather your documents, and file your ITR to ensure compliance and a hassle-free experience. Stay updated via the Income Tax Department’s portal (www.incometax.gov.in) for the latest announcements.
Sources: The Financial Express, Business Today, Upstox, Bajaj Finserv, Tax2win, IndiaFilings, The Times of India, Press Information Bureau
