The Income Tax Department has extended the due date for filing Income Tax Returns (ITRs) for the financial year 2024-25 (assessment year 2025-26) from the usual July 31 deadline to September 15, 2025. The decision, announced by the Central Board of Direct Taxes (CBDT) on Tuesday, is a response to extensive revisions in the notified ITR forms, which require more time for system readiness, software rollout, and integration of utilities.
System Changes Prompt Deadline Extension
According to the CBDT statement, the notified ITR forms for the assessment year 2025-26 have undergone major changes, affecting their structure and content. These revisions are intended to simplify taxpayer compliance, improve transparency, and support more accurate income reporting.
Due to the comprehensive overhauls, the backend systems of the Income Tax Department need further development and testing. The rollout of utilities to support the new forms is still in progress. To ensure that taxpayers are not inconvenienced and have sufficient time to comply with the new norms, the filing deadline has been formally pushed to September 15, 2025.
This extension also provides relief for those waiting for tax credit updates. TDS (Tax Deducted at Source) statements, which must be filed by May 31, are expected to begin reflecting in taxpayer accounts only by early June. Without the extension, this would have significantly limited the effective window for filing returns.
ITR Forms ITR-1 and ITR-4 Notified on April 30
On April 30, the CBDT notified the ITR-1 (SAHAJ) and ITR-4 forms for the financial year 2024-25. These forms are mandatory for filing returns on income earned between April 1, 2024, and March 31, 2025.
This year, ITR-1 has seen a notable expansion in scope, allowing for the reporting of long-term capital gains (LTCG) under Section 112A, provided the gains do not exceed ₹1.25 lakh. Additionally, taxpayers using this form must ensure that no capital loss is being carried forward or set off. Earlier, ITR-1 did not offer this reporting feature for capital gains.
This change means that taxpayers with long-term gains from listed equity shares or equity-oriented mutual funds can now file returns through ITR-1, making the process more accessible. However, it’s important to note that ITR-1 remains off-limits to those with capital gains from real estate transactions or short-term gains from listed securities.
Adjustments in New vs. Old Tax Regime Selections
The revised forms also address the opt-in and opt-out mechanism for the new income tax regime, introduced in 2020 as an alternative to the traditional tax structure. Taxpayers who opted out of the new regime in AY 2024-25 must now clearly declare their intent to continue or reverse that choice for AY 2025-26.
For those opting out for the first time this year, the submission of Form 10-IEA is compulsory. The ITR must include acknowledgement details of Form 10-IEA, ensuring that transitions between regimes are tracked and documented.
The need for clarity on late filing consequences for Form 10-IEA has also been emphasized, as missing the submission window can affect the validity of the selected tax regime.
Why the Deadline Extension Matters
This is not the first time the Income Tax Department has extended return filing deadlines, but this year’s move comes in light of technical and systemic requirements rather than disruptions like the COVID-19 pandemic, which prompted earlier extensions in recent years.
The revised ITR forms are intended to modernize the tax reporting process, and the authorities are working to ensure all backend infrastructure is fully compatible. The system utilities, which include integration with TDS databases, pre-filled return features, and validation processes, are crucial for seamless compliance.
Stakeholders across the spectrum—including tax professionals, fintech platforms, and industry bodies—had raised concerns about the compressed timeline between TDS reflection and the original July 31 deadline. With TDS credits showing up only in early June, there would have been limited time to reconcile income details and complete filings accurately.
The extension to September 15 allows a broader compliance window, reducing the chances of errors and incomplete filings. It also eases pressure on chartered accountants and tax consultants, who face a heavy workload during filing season.
Practical Implications for Taxpayers
For salaried individuals, freelancers, and small business owners, this extension means more time to:
- Review their Form 26AS and Annual Information Statement (AIS)
- Cross-check any capital gains or additional income disclosures
- Decide on the appropriate tax regime and file Form 10-IEA if necessary
- Ensure timely submission of foreign asset disclosures where applicable
- Utilize tax-saving instruments under Sections 80C, 80D, 80G, and others before finalizing returns
Moreover, those expecting refunds will benefit from the extended timeline as they can submit error-free returns, thereby avoiding notices or delays in processing.
Compliance Reminders Still Apply
Even though the deadline has shifted, early filing is encouraged. Filing returns earlier reduces the chance of last-minute errors and server slowdowns, and in cases where tax refunds are due, it facilitates quicker processing by the Income Tax Department.
Taxpayers must ensure they download the correct version of the ITR utility, keep PAN and Aadhaar details updated and linked, and reconcile bank account information to receive refunds without delays.
The revised ITR forms can be accessed via the Income Tax Department’s official website, along with updated instructions and system guides. Once the backend systems are fully operational, the department is expected to release updated e-filing utilities compatible with the changes.
Software and Integration Readiness Still Pending
As of now, the e-filing portal has yet to release fully functional utilities for the new ITR forms. While preliminary forms are available for download, full integration with validation features, TDS auto-fill, and AIS access remains pending.
Tax software vendors and third-party platforms such as ClearTax, Khatabook, and others are expected to update their systems in sync with government releases. Until then, tax practitioners are advised to prepare data offline but wait for utility readiness before submission.
Additionally, clarification is awaited regarding Form 10-IEA deadlines and any possible penalty provisions if filed late or incorrectly. The CBDT is likely to issue a follow-up circular on procedural matters in the coming weeks.
The extension of the Income Tax Return filing deadline to September 15, 2025, offers taxpayers more time to adapt to structural changes in ITR forms and ensures that system utilities are fully operational. With important updates in ITR-1’s eligibility, capital gains reporting, and tax regime declaration requirements, this year’s filing season demands greater attention to detail and proactive planning. While the deadline extension provides relief, taxpayers are encouraged to use the additional time wisely to ensure accurate and timely filing.
