Income tax return filing deadline extended to September 15 from July 31

The Central Board of Direct Taxes (CBDT) on May 27 announced that the deadline for filing Income Tax Returns (ITRs) for the assessment year 2025–26 will be extended to September 15 from July 31 due to significant changes in ITR forms and delays in TDS credit.

The notified ITRs for AY 2025-26 have undergone structural and content revisions aimed at simplifying compliance, enhancing transparency, and enabling accurate reporting. These changes have necessitated additional time for system development, integration, and testing of the corresponding utilities, the CBDT said in a statement.

“Furthermore, credits arising from TDS statements, due for filing by 31st May, 2025, are expected to begin reflecting in early June, limiting the effective window for return filing in the absence of such extension,” it added.

A formal notification to this effect will be issued separately, the CBDT said.

As per a statement released by the Union Finance Ministry, the extension in due date is expected to mitigate the concerns raised by stakeholders and provide adequate time for compliance, thereby ensuring the integrity and accuracy of the return filing process.

The ITR forms notified for the FY 2024-25 (AY 2025-26) incorporate the amendments introduced by the Finance Act 2024 and have enhanced reporting requirements relating to deductions being claimed, requirement to report TDS section codes, provide the bifurcation of capital gains for pre and post 23 July 2024, said Sonu Iyer, Partner and National Leader, People Advisory Services-Tax, EY India.

The Finance Act 2024 has rationalised capital gains taxation on specific transactions on or after 23 July 2024. Given the requirements of these new ITR forms, the e-filing utility (both online and offline) needs to be updated by the Government.

“It is a very welcome move from the government to extend the ITR filing deadline from 31 July 2025 to 15 Sep 2025, allowing taxpayers the time required to comply with these enhanced reporting requirements and legislative changes,” Iyer said.

The timeline of 31st July of filing ITRs for taxpayers are a big hardship every year. Every year there are changes in ITRs structure which means utilities take time to be published. Every year TDS/TCS credits are reflected by 15th June, which means effectively only 1.5 months are available for filing such ITRs. It is a welcome move of extending the due date to 15th September this year, said Vivek Jalan – Partner Tax Connect Advisory Services.

“However it is a long standing demand of Taxpayers that permanently the due date of filing ITRs for such taxpayers be extended to 31st August at least,” Jalan added.