This year, millions of taxpayers across India welcomed some much-needed relief: the ITR filing deadline for the financial year 2024–25 (assessment year 2025–26) has been extended from July 31 to September 15, 2025. The Central Board of Direct Taxes (CBDT) and the Ministry of Finance announced this extension in late May, citing the extensive revisions made to ITR forms and the need for additional system testing and integration time.
Why the Extension Was Necessary
Several interlinked factors led to the decision:
- Major updates to ITR forms: The ITR forms for AY 2025-26 have undergone comprehensive structural and content changes. These updates aim to simplify compliance, enhance reporting accuracy, and align with new tax regime adjustments.
- Delayed rollout of e-filing utilities: The electronic and Excel-based filing utilities were released weeks later than usual, with many made available only by July or August—primarily in early August for the ITR-5 form.
- Late TDS reflection: TDS (Tax Deducted at Source) statements, due by May 31, are expected to reflect in the system only by early June. Without the extension, taxpayers would have had very little time to reconcile TDS and file accurate returns.
Who Benefits from the Extension?
The revised deadline of September 15, 2025, applies to taxpayers not subject to audit, including:
- Individuals, Hindu Undivided Families (HUFs), Associations of Persons (AOPs), Bodies of Individuals (BOIs)
- Non-audit businesses such as private limited companies, one-person companies (OPCs), LLPs, and partnership firms
Taxpayers whose accounts require audit must still adhere to respective deadlines:
- Tax audit cases: October 31, 2025
- Transfer pricing (Form 3CEB): November 30, 2025
- Belated/revised returns: December 31, 2025
- ITR-U (updated returns): January 1–March 31, 2026
Relief and Rising Concerns
The extension offers significant breathing room for taxpayers and professionals grappling with the new forms and delayed utilities. It also paves the way for more accurate TDS filing, ensuring credits are properly reconciled.
However, not all is smooth sailing:
- Refund interest burden: With extended deadlines, the government may have to pay higher interest on delayed refunds. Projections suggest a 33% increase in interest payouts this year. Although this interest is a liability for the government, it still benefits taxpayers, albeit the interest earned is taxable.
- Still lagging return processing: Despite the extension, as of early August, return processing remains below 40%, indicating operational backlogs.
- Calls for further extension: Bodies like the Gujarat Chamber of Commerce & Industry (GCCI) and leading tax professionals argue that the current timeline may still be insufficient. A petition and letters to the CBDT suggest extending deadlines further to accommodate technical issues, festival season disruptions, and audit complexities.
What This Means for You
ITR Filing: Practical Tips
- Prioritize filing as early as possible—don’t wait until September 15.
- Verify TDS credits by matching Form 26AS/AIS/TIS data. Utilities are now available, but earlier discrepancies may still exist.
- Use the latest Excel or online utilities for your applicable ITR form.
- Make sure to account for and declare interest on tax refunds as part of your taxable income.
GST Registration and Compliance
If you’re starting a business, ensure GST registration is complete well before filing your ITR. Timely registration and compliance help avoid last-minute chaos and penalties. Additionally, if you’re required to file GST returns, aligning your bookkeeping can make cross-checks easier when filing ITR.
TDS Filing and Reconciliation
- Confirm that your TDS filings are complete and reflect correctly in Form 26AS.
- Report TDS deductions properly in your ITR to avoid mismatches that cause delays or notices.
- If you’ve faced delays in TDS credit reflection, reconcile manually before submitting your ITR.
Looking Ahead: Beyond September 15
As the deadline looms, there’s growing consensus that more relief may be needed. If you haven’t already filed, use these extra weeks wisely.
- Tax practitioners are calling for deadline extensions for ITR filing, tax audits, GST annual returns, and company law matters to reduce end-of-season stress.
- However, there’s no official extension beyond September 15 yet.
Final Thoughts
The extended ITR filing deadline is a welcome reprieve that underscores the government’s intent to ease compliance burdens amid system transitions. Yet, it also highlights the interconnected nature of tax procedures—ITR filing, TDS filing, and GST registration/compliance must all be in sync.
For businesses and salaried individuals alike, it’s a reminder to stay proactive:
- Complete ITR filing as soon as possible.
- Cross-verify TDS credits and declare interest income.
- Keep GST registration and returns current to ensure smooth reconciliation.
This extended window is a valuable opportunity—let’s use it wisely to ensure accurate, compliant, and stress-free final filings.