Individuals and entities, who do not need to get their accounts audited, are required to file income tax returns (ITR) by July 31.
New Delhi: In a major relief to taxpayers, the income tax department under the Union finance ministry on Tuesday extended the due date for filing income tax returns or ITRs for Assessment Year (AY) 2025-26 to September 15 from July 31 this year. The reason behind this extension is to mainly facilitate a smooth and convenient filing experience for taxpayers in the country.
Usually, the ITR forms are notified before the end of the fiscal year, mostly around January or February of the year. "But, this time, however, the ITR forms and the filing utility got delayed as revenue department officials were preoccupied with the new Income Tax Bill, which was introduced in Parliament in February, according to the sources.
Citing the other reason for extension, sources, however, said that the government wants more time to facilitate the taxpayers as there are some significant revisions in ITR forms and the process is still going on in the system. “We want people to take more time for filing their returns as this extension is likely to mitigate the concerns of stakeholders and provide adequate time for compliance. We want integrity and accuracy of the ITR filing process,” the sources said.
As per the government’s notification, the extension applies to individuals, HUFs and entities, who do not need to get their accounts audited. They can now file their tax return for income earned in the 2024-25 (April-March) fiscal by September 15. “The extension was necessitated to prepare income tax systems to incorporate changes in ITR forms and roll out the utilities,” the Central Board of Direct Taxes (CBDT) said.
This year, ITR forms for AY26 were notified in late April and early May against the previous year's practice of notifying them in January/February. “To facilitate a smooth and convenient filing experience for taxpayers, it has been decided that the due date for filing ITR, originally due on July 31, is extended to September 15, 2025,” the CBDT said.
The notified ITRs for AY2025-26 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 added.
In addition to the above reasons, the department further said that credits arising from TDS statements, due for filing by May 31, are expected to begin reflecting in early June, limiting the effective window for return filing in the absence of such an extension.
The department has also made certain changes in the form, with regard to deductions claimed under 80C, 80GG and other sections and has provided a drop-down menu in the utility for tax filers to select from. Also, assessees will have to furnish in the ITR section-wise details with regard to TDS deductions. Under the I-T law, LTCG of up to Rs 1.25 lakh from the sale of listed shares and mutual funds are exempt from tax. Gains exceeding Rs 1.25 lakh/ annum are subject to 12.5 per cent tax.
The government has notified the income tax return forms 1 and 4, filed by individuals, HUFs and entities with total income up to Rs 50 lakh a year and who do not have to get their accounts audited, for the assessment year 2025-26 on April 29. “Now, entities with long-term capital gains of up to Rs 1.25 lakh from listed equities can show such income in ITR 1 and 4. Earlier, they were required to file ITR-2,” it said.
