The Central Board of Direct Taxes (CBDT) has just made a major announcement that brings some welcome breathing space for taxpayers across India. If you were stressing over the original deadline of 31st July 2025 for filing your Income Tax Return (ITR), here’s the good news — the date has been officially extended to 15th September 2025.
But why was this extension needed, and how does it impact you? Let’s break it down in simple terms.
What’s Behind the Deadline Extension?
The Income Tax Returns (ITRs) for the assessment year 2025-26 have gone through a massive overhaul. The government has introduced structural and content changes to make the filing process:
- More transparent
- Easier to comply with
- Better at capturing accurate financial details
While these upgrades are meant to simplify things in the long run, they also require significant system changes — think of it like a software update for the entire ITR ecosystem. This means additional time is needed for testing, integrating the new utilities, and ensuring everything runs smoothly.
Another technical reason is the delay in TDS credits showing up. Even though TDS returns are due by 31st May 2025, the actual credit entries are expected to reflect only by early June. That would’ve left very little time for taxpayers to match their data and file returns correctly before the original 31st July deadline.
Read more: E-Filing for AY 2025-26: Why You Still Can’t File Your ITR Online
What This Means for You
Here’s what you should take away from this update:
- New ITR due date: 15th September 2025
- More time to review and file your return without errors
- Less pressure on chartered accountants, tax preparers, and salaried individuals
- Improved accuracy with updated TDS credits in place before you file
This is especially helpful for businesses, professionals, and individuals with complex filings. For salaried individuals, it also means more time to verify Form 16, check pre-filled data, and ensure all deductions and income sources are accounted for.
What’s Happening Around This Year’s Tax Season
Apart from this extension, here are a few noteworthy updates and reminders to keep in mind:
1. New Tax Regime Defaults
Starting this year, the new tax regime is the default choice for all taxpayers unless you specifically opt for the old regime. So if you prefer claiming deductions like Section 80C, 80D, HRA, etc., make sure to opt for the old regime before filing.
2. Pre-filled ITR Forms Are More Robust
Thanks to technology upgrades, more data like bank interest, capital gains, and mutual fund details are pre-filled. But don’t assume everything is accurate — always cross-check!
3. Push for Digital Filing
The government continues to nudge taxpayers toward seamless digital filing. Whether salaried or self-employed, the ITR utilities are becoming smarter and more user-friendly.
4. Penalty Still Applies for Late Filing
Even with the ITR deadline extended, don’t delay unnecessarily. Filing after 15th September 2025 may attract a penalty of up to ₹5,000, depending on your income level.
Our Advice: Don’t Wait Till the Last Minute
This extension is a buffer, not an excuse to procrastinate. Here’s a quick plan:
- June: Collect your Form 16, interest certificates, and capital gains statements.
- July: Verify TDS and match it with Form 26AS.
- August: Fill in your ITR and double-check regime selection.
- By early September: File and relax.
Especially for NRIs: Early Filing Still Matters
While this extension comes as a welcome relief for many domestic taxpayers, the situation is slightly different for NRIs—especially those filing returns in the US or other countries. Many NRIs rely on timely Indian ITR filing to complete their global tax reporting, and any delay in the Indian tax filing can create a ripple effect, holding up their returns abroad.
At SBNRI, we understand how important it is for you to close your ITRs early. That’s why, while we wait for the government to release the updated filing utility, we’re already preparing to get your returns filed at the earliest possible opportunity. You can book your slot in advance and we’ll initiate your filing as soon as the utility goes live.
If you’d like a simple checklist to get started with your ITR filing for AY 2025-26, tap below.
Final Thoughts
The CBDT’s decision to extend the ITR filing deadline to 15th September 2025 reflects its intent to ensure a smooth and stress-free tax filing season. For taxpayers, it’s a golden opportunity to get things right without rushing.
Use this time wisely. Organize your documents, understand your tax liabilities, and if needed, consult a professional. A well-filed return not only avoids penalties but also speeds up your refund process.
Stay informed. Stay compliant.
FAQs
Why has the ITR deadline been extended to 15th September 2025?
The extension was granted due to major changes in ITR forms, system readiness delays, and the late reflection of TDS credits, which would’ve limited the filing window.
Who benefits from the ITR deadline extension?
All taxpayers, including salaried individuals, professionals, and businesses, benefit as they now have more time to file accurate returns.
Is there a penalty for filing after 15th September 2025?
Yes. If you miss the new deadline, a penalty of up to ₹5,000 may apply, depending on your total income.
Does the extension apply to both old and new tax regimes?
Yes, the extended deadline applies to all taxpayers, regardless of the tax regime chosen.
Can I file my ITR now, or should I wait?
You can start preparing now, but ensure that all TDS and financial data is updated, ideally by June, before filing.
Will Form 16 and TDS statements be available in time?
Form 16 is typically issued by mid-June, and TDS credits are expected to reflect in early June as per CBDT’s update.
Is a formal notification issued for this extension?
Yes, the CBDT has officially announced the extension in a press release dated 27th May 2025.
