In a major relief to taxpayers, the Central Board of Direct Taxes (CBDT) has officially extended the due date for filing Income Tax Returns (ITRs) for the Financial Year 2024–25 (Assessment Year 2025–26). Previously scheduled for July 31, 2025, the deadline now stands at September 15, 2025. This move is in response to substantial structural revisions in the ITR forms and the ongoing technological updates being implemented by the Income Tax Department. The delay will help ease the burden on both taxpayers and professionals who were concerned about the short filing window due to delayed reflection of TDS credits and technical readiness of the tax filing portal. According to the Income Tax Department, this change aims to provide a smoother and more accurate return filing experience.

Why the Extension Was Needed: System Updates and TDS Credit Delays

The decision to postpone the deadline stems from a series of significant revisions in the ITR forms, which now require more detailed disclosures, especially after changes introduced in the Finance Act 2024. The updates require additional system integration and testing time. TDS statements—due to be filed by May 31, 2025—will start reflecting only by early June, leaving little time for taxpayers to reconcile their details in Form 26AS, AIS, and TIS. Experts like CA Ashish Niraj and Parizad Sirwalla from KPMG have welcomed the move, stating that the previous timeline was too short given that even by May 27, 2025, the ITR utilities had not yet been made available on the portal. Mismatches in AIS and TDS data were also causing complications, making it challenging to file accurate returns.

Key Changes in ITR Forms for AY 2025–26

For AY 2025–26, all seven ITR forms have been notified with several new provisions and reporting requirements. For instance, ITR-1 (Sahaj), meant for salaried individuals, now allows reporting of long-term capital gains (LTCG) up to ₹1.25 lakh, which was not allowed earlier. ITR-2 has been updated to reflect capital gains before and after July 23, 2024, following new tax laws introduced by the Finance Act. ITR-3 for business professionals now mandates reporting of higher-value assets (threshold raised from ₹50 lakh to ₹1 crore). ITR-4 (Sugam) also includes LTCG allowances, helping small taxpayers. Meanwhile, ITR-5, 6, and 7 have undergone updates to accommodate firms, LLPs, trusts, and companies with capital gains and special income categories, keeping the reporting more transparent and standardized.

Expert Opinions: Why This Move Was Critical

Tax experts have lauded the extension as a timely and necessary step. According to Sonu Iyer from EY India, the rationalization of capital gains tax rules and detailed bifurcation based on transaction dates have increased the complexity of filing returns this year. The e-filing utilities require an overhaul to support such detailed compliance. Taxpayers were already grappling with a non-functional ITR filing interface and insufficient AIS data until late May. As CA Ashish Niraj points out, the pressure on both professionals and taxpayers was building, with the deadline approaching and no tools to start filing. This extension will help in reducing last-minute errors and also give sufficient time to reconcile discrepancies in financial data.

Final Word: A Welcome Move, But File Early

While the extension to September 15 offers relief, experts advise taxpayers not to wait until the last moment. Filing early, once the utilities are ready, ensures faster processing of refunds and helps avoid late interest charges in case additional taxes are due. The government’s decision not only aligns with taxpayer expectations but also reflects a broader commitment to improving compliance infrastructure and ensuring data accuracy. It’s clear that with updated ITR forms, enhanced TDS disclosures, and a new timeline in place, the Income Tax Department is aiming for a more streamlined and taxpayer-friendly filing season in FY 2024–25.