New Delhi: The Income Tax Department on Tuesday announced an extension of the deadline for filing Income Tax Returns (ITRs) for Assessment Year (AY) 2025–26, moving the due date from July 31 to September 15, 2025.
The extension applies to individual taxpayers, Hindu Undivided Families (HUFs), and other entities that are not required to have their accounts audited.
They now have until mid-September to file returns for income earned during the financial year 2024–25 (April–March).
In a statement, the Central Board of Direct Taxes (CBDT) said the decision was taken to provide adequate time for the upgraded income tax systems to accommodate significant changes in the ITR forms and their corresponding digital utilities.
“This year, ITR forms for AY 2025-26 were notified relatively late—only in late April and early May—unlike previous years when forms were made available in January or February,” the CBDT noted.
“To ensure a smooth and convenient filing experience for taxpayers, the due date has been extended to September 15, 2025.”
The newly introduced ITR forms have undergone substantial structural and content revisions.
These include simplified compliance procedures, enhanced reporting features, and clearer disclosures.
The department said the system requires additional time for development, integration, and testing to ensure accurate and seamless e-filing.
The extension also takes into account the delay in TDS (Tax Deducted at Source) credit availability.
TDS statements, which are due by May 31, typically begin reflecting in the taxpayer’s accounts by early June—leaving a limited window for timely return filing without an extension.
The government has already notified ITR Forms 1 and 4, typically used by individuals, HUFs, and small businesses with income up to Rs. 50 lakh who are not subject to audit requirements.
A notable change this year is that taxpayers with long-term capital gains (LTCG) up to Rs. 1.25 lakh from listed equities and mutual funds can now report these gains in ITR 1 and 4, whereas previously, such filers were required to use ITR 2.
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Further, the forms now offer drop-down menus for deductions under sections like 80C and 80GG, and require section-wise TDS details, aimed at improving accuracy and reducing errors in filing.
Under current income tax rules, LTCG up to Rs. 1.25 lakh annually from listed shares and equity mutual funds are exempt. Gains exceeding this threshold are taxed at 12.5%.
The delay in notification of forms this year is attributed to the Revenue Department’s ongoing work on the new Income Tax Bill, introduced in Parliament earlier this year.
