In a significant relief to taxpayers, the Income Tax Department has extended the deadline for filing income tax returns (ITR) for the Assessment Year 2025-26 from July 31 to September 15. This extension applies to individuals, Hindu Undivided Families (HUFs), and other entities not requiring an audit of their accounts, providing them with more time to submit their returns for income earned during the financial year 2024–25.
The decision to push the deadline was primarily due to the delayed notification and structural changes in ITR forms for the current assessment year. Unlike previous years where forms were made available around January or February, the ITR forms 1 and 4 were only notified in late April 2025. The Central Board of Direct Taxes (CBDT) cited these delays and the need for comprehensive system updates and testing as reasons for the extended timeline.
Significantly, the revised ITR forms now allow declaration of long-term capital gains (LTCG) up to ₹1.25 lakh from listed equities in ITR-1 and ITR-4, which was previously allowed only in ITR-2. Additionally, the new forms include improved utilities such as drop-down menus for deductions under sections like 80C and 80GG and section-wise TDS details.
The CBDT also noted that TDS credits, based on statements due by May 31, will start reflecting in early June, further justifying the need for a time extension. The aim is to enhance accuracy, compliance ease, and transparency for taxpayers using the updated system.
This move is expected to reduce last-minute filing pressure and allow both taxpayers and the tax department to manage the new filing processes more efficiently.
