Income Tax Due Date Extension Latest News: Why the Due Date Has Been Extended to September 16, 2025?
- Rashmita Choudhary
- Sep 29
- 6 min read
For non-tax audit cases, the deadline for filing ITRs for FY 2024–2025 (AY 2025–26) has been moved to September 16, 2025. Although July 31st was the deadline for filing Income Tax Returns (ITR), an extension was required to start the necessary modifications to the ITR form and utilities. Why has the due date been extended so much? Is there a chance of further extension of the deadline? Should taxpayers worry if they have yet to file their returns? Getting answers to these questions is crucial to filing your taxes on time and preventing penalties and fines.
Table of Contents
Income Tax Due Date Extension 2025
The deadline for filing ITRs for the assessment year 2025–2026 has been moved from July 31st, 2025 to September 16th, 2025, according to a press release issued by the Central Board of Direct Taxes (CBDT) on May 27th, 2025. The fact that this extension occurs so long after the COVID-19 disturbances, when deadline extensions were frequent, makes it especially notable. For the last three years, the administration has continuously met the initial deadline of July 31st. Thus, this year's extension seems out of the ordinary and has generated conjecture. Although the action provides taxpayers with comfort, it also represents possible institutional or systemic delays, which may indicate that something important is simmering in the background.
What are the Reasons for the ITR Due Date Extension?
Important modifications to ITR forms for the current assessment year have been announced by the CBDT. Significant structural and content changes have been made to ITR forms and utilities in order to improve transparency, streamline compliance, and accurately record income and deduction claims.
After these key changes in the forms and utilities, adequate time was required for system development, integration, and testing of the related utilities, as well as for the implementation of such changes.
Disclosures about capital gains, which are taxed differently depending on when the capital asset was sold (before or after July 23, 2024), are among the most important modifications to the form.
This extension was required for an accurate and efficient data reflection and error-free filing since the credit resulting from the submission of the TDS statement for the fourth quarter of FY 2024–2025, which was due on May 31st, 2025, is anticipated to be reflected in early June 2025, which creates a limited period for filing the ITR.
Past Trends of ITR Due Date Extension
The non-tax audit deadlines for the fiscal years 2020–21 and 2019–20 were previously moved from July 31 to December 31, 2021, and January 10, 2021, respectively, due to the unforeseen COVID-19 epidemic. Other than that, there haven't been any notable extensions to the ITR filing deadline in recent years. Below is a historical trend of the due dates for the previous five financial years.
Will the ITR Deadline Be Extended Beyond 16th September, 2025?
Taxpayers and accountants have requested an additional extension as the deadline draws near, pointing to issues with refund status updates, ITR processing delays, and malfunctions on the income tax system. 5.47 crore ITRs had been filed as of the most recent report, a substantial decrease from the 7.28 crore ITRs filed the previous year. The Income Tax Department has not yet provided an update regarding the date extension, despite the fact that the window is closing soon. However, the Institute of Chartered Accountants of India (ICAI) and the Advocates Tax Bar Association have asked for an extension due to the growing number of issues.
Trade Bodies Request for Extension of ITR Deadline
A number of professional and commercial associations have asked the Central Board of Direct Taxes (CBDT) to extend the deadline even further. These organisations have demanded an extension, citing unsolved difficulties from this year. Furthermore, the Federation of Karnataka Chambers of Commerce & Industry (FKCCI) and the Chartered Accountants Association, Surat (CAAS) have identified the late provision of ITR utility, compliance requirements, and persistent portal difficulties as significant obstacles. The Bombay Chartered Accountants' Society (BCAS) brought up the matter as well in a letter dated September 1, requesting an extension of the deadline for filing ITRs, tax audit cases, and Transfer Pricing filings. It stated that the main cause of this request was ongoing system problems. These include:
Limited preparation period
Additional requirements for compliance
Technical glitches with the portal
Discrepances across Form 26AS, TIS, and AIS
The CBDT has not yet issued a notification addressing the extension of the deadline for filing ITRs, despite calls for it. People whose accounts don't need to be audited are expected to file their taxes before the deadline in the current situation.
Conclusion
Both professionals and taxpayers who are having trouble complying on time have benefited greatly from the extension of the deadline. With the substantial modifications made to the ITR forms for the assessment year 2025–2026, taxpayers will have a smooth filing experience thanks to this extension of the deadline.
FAQs
Q1. Is the ITR due date extended for FY 2024-25 (AY 2025-26)?
Yes. For non-tax audit cases, the deadline has been moved to September 16, 2025.
Q2. Is the ITR due date extension applicable to all taxpayers?
The deadline for submitting Income Tax Returns (ITR) for the Financial Year 2024–25 (Assessment Year 2025–26) has been extended by the Central Board of Direct Taxes (CBDT) to September 16, 2025. All assessees that are exempt from tax audits, such as individuals, HUFs, partnership firms, AOPs, and BOIs, are covered by this extended timeline.
Q3. Why is the income tax due date extended?
Tomake tax reporting simpler, more transparent, and more accurate, starting with the Financial Year 2024–2025, the government made some significant adjustments to the ITR forms. It took longer for the Income Tax Department (CBDT) to implement these modifications and update the systems appropriately. The deadline for filing the ITR has been extended as a result.
Q4. Where can I check if the ITR due date is extended in 2025?
News on an extension of the ITR due date can be found on the website of the Income Tax Department and in credible media sources such as TaxBuddy.
Q5. Has the extension of the ITR filing deadline led to an increase of 33% in interest on tax refunds?
The extension of the ITR filing date to September 16, 2025, may result in a marginal increase in interest on your income tax refund under Section 244A of the Income Tax Act. Interest is computed from April 1st of the assessment year until the date of repayment at a rate of 6% annually (0.5% monthly). The interest period can go up a little because the longer timetable gives more time for processing. This does not, however, imply that refund interest will rise by 33%.
Q6. What happens if the ITR filing is missed by September 16?
Under Section 234F, filing returns after September 16 will result in a penalty of Rs 5,000 (if income exceeds Rs 5 lakh) and Rs 1,000 for smaller incomes. While updated returns (ITR-U) can be filed until March 31, 2030, belated or revised returns can still be filed until December 31, 2025.
Q7. Can I file my ITR after the due date?
Yes, a person can still file a belated return by December 31, 2025, even if they didn't file their ITR by the deadline. They have 48 months (four years) from the end of the relevant assessment year to file an updated return if they are unable to file a delayed return.
Q8. What are the late ITR filing fees?
The taxpayer must pay a late filing charge if the return is filed after the deadline. A fee of Rs 5,000 is necessary for returns that are filed after the deadline. However, in cases when the total revenue is less than Rs 5 lakh, the late fee is only Rs 1,000. The Income Tax department levies a 1% monthly interest rate on the unpaid tax amount in addition to the late filing fee.
Q9. What is a non-audit case?
A non-audit case is one in which an audit of the taxpayer's accounts is not necessary. Those who make money from capital gains, rent, pensions, salaries, and other sources usually fall into this category. Sections 44AD, 44ADA, and 44AE of the presumptive taxation plan also apply to professionals and small enterprises.
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