The Central Board of Direct Taxes (CBDT) has announced an extension of the due date for filing Income Tax Returns (ITRs) for the financial year 2024-25 (assessment year 2025-26). Individual taxpayers and Hindu Undivided Families (HUFs) not subject to audit can now file their returns until 15 September 2025, instead of the earlier deadline of 31 July 2025.
The deadline for taxpayers whose accounts are subject to audit, however, remains unchanged at 30 September 2025.
Why the extension was granted
The CBDT decision followed multiple appeals from professional bodies and chartered accountants citing difficulties faced by taxpayers. Some of the key issues flagged included:
- Portal-related problems: Frequent glitches, login delays, and technical failures while uploading returns.
- Data mismatches: Differences between the Annual Information Statement (AIS) and Form 26AS, causing confusion over tax credits.
- Delayed availability of forms: Updated ITR forms and utilities were issued later than usual, leaving filers with less preparation time.
- Additional compliance requirements: New disclosure formats introduced by the Institute of Chartered Accountants of India (ICAI) added to the compliance workload.
Bodies such as the Chandigarh Chartered Accountants Taxation Association (CCATAX) urged the government to consider these challenges. Responding to these representations, the CBDT issued a circular on 27 May 2025 granting a six-week extension.
Importance of timely filing
While the new deadline provides relief, tax experts advise taxpayers not to wait until the last moment. Missing the September 15 cut-off could attract penalties under Section 234F, along with interest liabilities under Sections 234A, 234B, and 234C of the Income Tax Act. Additionally, late filing may restrict the ability to carry forward certain losses.
The extension offers much-needed breathing space for taxpayers and professionals, but authorities have signaled that further relaxations are unlikely.
