ITR Deadline Extended? How to Plan Your Filing Strategy for Maximum Savings

The Central Board of Direct Taxes (CBDT) has extended the Income Tax Return (ITR) filing deadline for the Financial Year 2024-25 (Assessment Year 2025-26) to 15th September 2025. This extension primarily benefits non-audit taxpayers, such as salaried individuals and small business owners, by providing extra time to file returns. The additional cushion allows taxpayers to ensure their filings are accurate and compliant with the updated requirements, avoiding penalties. With this extended deadline, taxpayers now have more time to organize their documents, verify TDS credits, and plan their tax-saving strategies effectively. It also provides an opportunity to review and correct any discrepancies in the pre-filled data on the income tax portal. The extension helps taxpayers avoid last-minute errors and reduces the stress of filing under tight deadlines. By utilizing this time wisely, individuals can maximize their savings through proper planning and filing while minimizing the risk of penalties due to inaccuracies or missed deadlines.

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Table of Contents

Why Was the ITR Deadline Extended?

How to Plan Your ITR Filing Strategy for Maximum Savings

Conclusion

FAQs

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Why Was the ITR Deadline Extended?

The extension of the ITR filing deadline comes in response to several key factors. First, the Income Tax Department has introduced significant changes to the ITR forms for AY 2025-26. These changes aim to simplify the filing process and improve transparency, but they also required additional time to update the e-filing portal and integrate new utilities. Moreover, the reflection of TDS credits in statements due by 31st May 2025 was delayed, and this extension allows taxpayers to file their returns with accurate data. Taxpayers and professionals alike voiced concerns about the limited window for adapting to these new requirements, and the CBDT took these requests into account. The additional time enables taxpayers to review and correct any discrepancies in the pre-filled data on the income tax portal, ensuring smoother filing and reducing errors in the process.

How to Plan Your ITR Filing Strategy for Maximum Savings

Use the Extended Time Wisely The extended deadline provides an excellent opportunity to thoroughly prepare for filing your return. Ensure you gather all necessary documents, including Form 16 (issued by your employer), TDS certificates, interest certificates (e.g., for savings accounts, fixed deposits), and proof for claiming deductions such as insurance premiums and tuition fees. Also, review your Annual Information Statement (AIS) and Taxpayer Information Summary (TIS) available on the income tax portal to ensure that pre-filled data is accurate. If discrepancies are found, take immediate action to correct them. Additionally, ensure that your bank account is linked with the Income Tax Department’s system for timely and accurate processing of refunds.

Maximize Deductions and Exemptions The extended deadline offers more time to take full advantage of tax-saving opportunities. For example, if you haven’t already made investments in tax-saving instruments under Section 80C (like PPF, NSC, or ELSS), this is the ideal time to do so. Similarly, if you are eligible for deductions under Section 80D (health insurance premiums), Section 80G (charitable donations), and Section 80TTA/80TTB (interest on savings accounts), make sure to claim them. Homebuyers can also benefit by claiming deductions for both the principal repayment under Section 80C and interest payments under Section 24(b) on home loans.

Report All Income Sources Ensure that you report all sources of income accurately. This includes rental income, freelance earnings, interest from savings accounts, fixed deposits, and dividends. For rental income, claim the standard deduction of 30% for repairs and maintenance and subtract any municipal taxes paid on the property. If you have earned capital gains from selling shares, mutual funds, or property, make sure to report those as well. Understanding the current tax rules for various income sources will ensure that your filing is both complete and accurate.

Verify TDS Credits Before filing, cross-check the TDS credits reflected in your Form 26AS against the amounts reported by your employer, bank, or other deductors. Any discrepancies should be rectified by contacting the deductor to ensure that the correct TDS amount is reflected. This step is crucial as mismatched or missing TDS credits can lead to filing errors and refund delays. Taking care of this early in the process ensures that your filing is smooth and you avoid any delays in receiving your tax refund.

File Early, Don’t Wait for the Last Day While the extended deadline gives you more time, filing early remains a smart choice. Filing your return ahead of the deadline reduces the risk of last-minute errors, ensures that your refund is processed promptly, and gives you ample time to make corrections if needed. Additionally, early filing can help avoid the stress and pressure of rushing through the process, which often leads to mistakes. It also provides a window for rectification in case you spot any errors in your return after submission.

Use Reliable Tax Filing Platforms For a hassle-free filing experience, consider using trusted tax filing platforms like TaxBuddy. These platforms provide step-by-step guidance, expert support, and automatic error checks to help ensure your return is filed correctly. With the complexities of tax laws and the frequent updates to ITR forms, relying on a reliable platform can streamline the entire process. TaxBuddy’s intuitive interface simplifies filing, reduces the chances of errors, and ensures that you make the most of available deductions and exemptions.

Conclusion

The extended ITR deadline to 15th September 2025 provides an opportunity for taxpayers to file their returns more accurately and maximize their savings. By taking advantage of the extra time, taxpayers can ensure that their income sources are reported correctly, deductions are fully utilized, and TDS credits are verified. Filing early also reduces the risk of errors and gives taxpayers time to rectify any mistakes. For a smooth, error-free filing experience, consider using TaxBuddy’s mobile app. With expert guidance, easy document management, and a user-friendly interface, TaxBuddy ensures that your filing process is secure, simple, and stress-free. For anyone looking for assistance in tax filing, it is highly recommended to download the TaxBuddy mobile app for a simplified, secure, and hassle-free experience.

FAQs

Q1: What happens if I miss the new ITR deadline of 15th September 2025? If you miss the newly extended deadline of 15th September 2025, you can still file your Income Tax Return (ITR) by submitting a belated return. The belated return can be filed until 31st December 2025. However, it's important to note that you will be liable to pay interest under Section 234A of the Income Tax Act, which applies when the return is filed after the due date. Additionally, a late fee under Section 234F will be applicable. The fee could be up to ₹5,000, depending on the timing of your filing. Filing a belated return also increases the likelihood of a thorough scrutiny by the Income Tax Department, and you may not be eligible for certain benefits like carry forward of losses.

Q2: Who benefits from the ITR deadline extension?

The ITR deadline extension mainly benefits individual taxpayers, including salaried employees, self-employed individuals, and small businesses. The additional time gives taxpayers the opportunity to better prepare their tax returns, ensure all necessary documents are collected, and make full use of tax-saving opportunities. It also benefits those who need more time to adapt to the revised ITR forms, check for errors in pre-filled data, and verify TDS credits. This extension also helps tax professionals who require extra time to ensure that all their clients’ returns are filed accurately and without errors.

Q3: Are there any changes in the ITR forms for AY 2025-26?

Yes, significant revisions have been made to the ITR forms for AY 2025-26. These changes are aimed at simplifying the filing process and improving transparency. Some key updates include:

• A simplified reporting structure for long-term capital gains, particularly for those selling shares and mutual funds.

• The removal of Aadhaar Enrolment ID requirements from the forms, streamlining the identification process.

• The inclusion of more detailed sections for reporting income from virtual digital assets.

• More granular options for claiming exemptions and deductions. These revisions help ensure better clarity, reduce the chances of errors, and make it easier for taxpayers to file their returns.

Q4: Can I still claim deductions for investments made after March 31, 2025?

No, for the Financial Year 2024-25, only investments made during the financial year (before 31st March 2025) will be eligible for deductions under various sections like 80C, 80D, and others. Deductions are specifically tied to investments made during the financial year, and investments made after the end of the financial year cannot be used to reduce taxable income for the current year. Taxpayers should ensure they complete their eligible investments by the end of March 2025 to claim these deductions.

Q5: How do I ensure my TDS credits are correctly reflected before filing?

To ensure your TDS credits are correctly reflected, you must review your Form 26AS and the Taxpayer Information Summary (TIS) available on the income tax portal. These documents provide a detailed summary of all the TDS deductions made by your employer or other deductors, such as banks and financial institutions. If there are discrepancies, such as incorrect amounts or missing credits, you should approach the deductor immediately to request a correction. Resolving these issues before filing your return will help avoid delays in processing and ensure that you do not miss out on any tax credits.

Q6: How can I maximize tax savings during this extended period?

The extended deadline offers taxpayers the chance to maximize tax savings by making strategic investments and ensuring that all eligible deductions are claimed. You should consider:

• Investing in tax-saving instruments under Section 80C, such as PPF, ELSS, and NSC.

• Contributing to health insurance under Section 80D, especially if you are eligible for a deduction for insuring family members.

• Donating to charity and claiming deductions under Section 80G.

• Ensuring that home loan principal repayment and interest are included for deductions under Sections 80C and 24(b), respectively.

Additionally, make sure to utilize the full limit available under Sections 80TTA/80TTB for savings account interest if applicable.

Q7: What should I do if I have rental income to report?

If you have rental income, ensure it is reported accurately in your ITR. For residential property, you can claim a standard deduction of 30% on the rental income for repairs and maintenance, regardless of actual expenses incurred. Additionally, you can subtract municipal taxes paid on the property from the rental income before reporting it. If your property is let out and is subject to depreciation, make sure to claim depreciation under Section 32. Accurate reporting of rental income is crucial to avoid discrepancies and penalties.

Q8: Can I file my ITR using the official government portal or should I use an app like TaxBuddy?

You can file your ITR directly on the official government portal, which provides all the necessary forms for filing. However, using a platform like TaxBuddy can make the process much smoother, especially for those who need expert guidance or want to avoid the complexities of the portal. TaxBuddy offers step-by-step assistance, error checks, and personalized support to ensure your filing is error-free and maximizes your savings. The platform also helps with document management and provides an intuitive user interface, making it easier for individuals with minimal technical knowledge to file confidently.

Q9: How early should I file my ITR to avoid last-minute complications?

Filing your ITR as early as possible is always a good idea. It not only reduces the risk of errors but also ensures that you have ample time to address any issues that may arise, such as discrepancies in TDS credits or errors in pre-filled data. Early filing also ensures that your refund, if applicable, is processed sooner. It’s advisable to file well before the final deadline to avoid the stress of last-minute rushes, which often lead to mistakes and missed opportunities for tax savings.

Q10: What steps should I take if I find errors in my pre-filled ITR data?

If you find errors in the pre-filled data in your ITR, such as discrepancies in income, TDS, or deductions, you should take immediate action to rectify them. First, check your Form 26AS and AIS for any TDS mismatches. If the data is incorrect, contact the deductor to correct the TDS records. If there are errors in income details or other information, you can manually correct these entries in the ITR form. The extended deadline allows you time to address these issues without rushing, so it’s crucial to resolve any discrepancies before filing.

Q11: Can I claim deductions for a home loan under both Section 80C and Section 24b?

Yes, you can claim deductions for a home loan under both Section 80C and Section 24(b). Under Section 80C, you can claim deductions for the principal repayment of the home loan, up to ₹1.5 lakh per year. In addition, under Section 24(b), you can claim deductions for the interest paid on the home loan, up to ₹2 lakh per year for self-occupied properties. These two deductions can be claimed separately and are a great way to reduce your overall tax liability.

Q12: How does the new ITR deadline affect taxpayers who were already preparing their returns?

For those already preparing their returns, the extension of the ITR deadline to 15th September 2025 provides valuable additional time to double-check the details, maximize deductions, and ensure that all income sources are properly reported. It also offers more flexibility in resolving any discrepancies found in TDS credits, pre-filled data, or other information. Taxpayers can take this opportunity to correct mistakes, ensure that they’re receiving all eligible deductions, and file their return with greater confidence.