ITR Due Date Extensions and Their Impact on Refund Processing Times

The Central Board of Direct Taxes (CBDT) has extended the Income Tax Return (ITR) filing deadline for individuals and non-audit assessees for FY 2024-25 (Assessment Year 2025-26) from July 31, 2025, to September 15, 2025. This extension accommodates revisions in the ITR forms, the need for updated system utilities, and ensures that Tax Deducted at Source (TDS) credits are accurately reflected. However, how does this affect refund processing?

The extended deadline provides more time for accurate filing but may lead to delays in refund processing, especially for late filers. Early filers are more likely to receive their refunds sooner, while those filing closer to or after the extended deadline might face delays due to system backlogs and potential penalties. While the extension allows for better accuracy and smoother filing, it’s essential to file promptly to avoid unnecessary delays in refunds.

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Table of Contents

Overview of the Latest ITR Due Date Extension

Impact of Due Date Extensions on Refund Processing Times

Conclusion

FAQs

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Overview of the Latest ITR Due Date Extension

The Central Board of Direct Taxes (CBDT) has made a crucial move for taxpayers by officially extending the Income Tax Return (ITR) filing deadline for individuals and non-audit assessees for the Financial Year 2024-25 (Assessment Year 2025-26). Originally set for July 31, 2025, the new deadline is September 15, 2025. This extension aims to provide taxpayers additional time to complete their tax filings, especially due to significant changes and updates in the filing process. The reasons for this extension are multifaceted and revolve around the following core factors:

• Revised ITR Forms: One of the primary reasons for the deadline extension is the significant overhaul of the ITR forms for the financial year 2024-25. These revisions are designed to make the process of filing tax returns more transparent, reducing the likelihood of errors and ensuring more accurate reporting. However, these changes also introduce new complexities that require taxpayers to familiarize themselves with the updated forms. More time was needed for taxpayers to adapt to these modifications, ensuring that they can file their returns accurately and with minimal mistakes.
  

• System Readiness: Along with the changes in the ITR forms, there were essential updates needed to the system utilities used for processing these returns. The development and integration of these system updates required time for technical testing and validation. These updates aim to make the filing process smoother and more efficient, but the technical challenges involved meant that the system was not ready for full implementation by the original deadline. This additional time allows for ensuring the system can handle the new forms, reducing the chance of glitches or errors in processing returns.
  

• TDS Credit Reflection: One of the most critical issues that led to the extension of the deadline is the timing of the reflection of Tax Deducted at Source (TDS) credits. TDS statements are typically due to be issued by May 31, 2025, but the process of updating these credits in the system is usually delayed until early June. Since taxpayers often rely on these TDS credits to ensure accurate tax calculations, filing before these credits are reflected could result in discrepancies. This extension allows taxpayers to wait until the credits are fully updated in the system, ensuring that the information reflected on their returns is accurate. Filing before TDS credits are available could lead to mismatches, causing delays in the processing of refunds.

This extension serves a key purpose: ensuring that taxpayers have ample time to file their returns correctly. By giving them more time, the risk of errors is reduced, ultimately preventing delays in the processing of refunds and minimizing the chances of errors that could result in further scrutiny or penalties.

Impact of Due Date Extensions on Refund Processing Times

The extension of the ITR filing deadline brings immediate relief to taxpayers, especially those who may have struggled to meet the initial deadline. However, it also has a significant impact on the refund processing times. While the extension offers more time for filing, it can also result in a delayed refund process, especially for late filers. Below are the key factors that influence how the due date extension affects refund processing:

• Early Filers vs. Late Filers: Typically, the Income Tax Department processes returns on a first-come, first-served basis. This means that taxpayers who file early are generally among the first to have their returns processed and refunded. With the extension, many taxpayers are likely to delay their filings until the last minute, which will lead to a higher volume of returns being filed close to or on the final deadline. As a result, these returns will be processed later in the cycle, meaning that those who file late may experience delays in receiving their refunds. In other words, filing early still remains advantageous for those looking to expedite their refund processing.
  

• System Overload and Delays: The extension of the deadline is expected to result in a surge of last-minute filings. A significant number of taxpayers tend to file their returns as the deadline approaches, resulting in an overload of the system. This surge can cause delays in processing, as the system is forced to handle a higher volume of returns in a short period. When many people file close to the extended deadline, there is a higher likelihood of bottlenecks in the system, further slowing down the refund process. The Income Tax Department, which processes returns sequentially, may face a backlog, meaning the earlier you file, the sooner your return is likely to be processed.
  

• TDS Credit Mismatches: One of the key reasons for the extension is to ensure that TDS credits are accurately reflected in the system. The timing of the TDS reflection can be a source of delays if taxpayers file their returns before the TDS credits are updated. Filing returns before TDS credits are available can result in mismatches, meaning the returns may need to be manually corrected, and further verification will be required. This process can delay the refund process. The extension gives taxpayers more time to ensure the TDS credits have been correctly reflected in the system, minimizing discrepancies and preventing further delays in refund processing.
  

• Accuracy and Filing: The extra time provided by the extension gives taxpayers an opportunity to ensure the accuracy of their filings. With more time to gather necessary documents, review tax deductions, and verify TDS credits, taxpayers are less likely to make mistakes. Filing accurate returns means fewer revisions and corrections, which can slow down refund processing. Inaccuracies often lead to delays as the Department may require additional clarifications or the filing of revised returns. The extension enables taxpayers to double-check their returns and avoid such issues, thus improving the efficiency of the entire filing process and reducing the chances of delays in refunds.

The impact of the due date extension, therefore, is twofold: it offers relief by providing extra time for accurate filing, but it also increases the potential for delays in refund processing due to system overload and the volume of last-minute filings.

Conclusion

The extension of the ITR filing deadline for FY 2024-25 (Assessment Year 2025-26) provides significant relief to taxpayers, allowing them ample time to file accurate returns and ensure that all necessary documents, including TDS credits, are accounted for. However, it’s important to remember that timely filing remains crucial for faster processing of refunds. Filing earlier ensures that your return is processed sooner, and refunds are issued promptly. Platforms like TaxBuddy streamline the entire tax filing process, making it easier for taxpayers to file on time and avoid delays. 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. Does TaxBuddy offer both self-filing and expert-assisted plans for ITR filing, or only expert-assisted options?

TaxBuddy offers both self-filing and expert-assisted plans for Income Tax Return (ITR) filing. The self-filing plan allows individuals who are familiar with the tax filing process to file their returns independently, with TaxBuddy providing the necessary tools and guidance. For those who prefer a more hands-on approach, TaxBuddy also offers expert-assisted plans, where a qualified professional assists with the entire filing process to ensure accuracy and compliance.

Q2. Which is the best site to file ITR?

The best site to file your ITR depends on your preferences and needs. TaxBuddy is an excellent platform for seamless, AI-driven tax filing, providing both self-filing and expert-assisted options. It ensures a hassle-free, accurate filing experience with timely support. Alternatively, the official Income Tax Department portal is a reliable option for those who are comfortable navigating the system independently. However, platforms like TaxBuddy offer additional features like error-free filing and personalized support.

Q3. Where to file an income tax return?

You can file your Income Tax Return on the official Income Tax Department portal at incometax.gov.in or on tax filing platforms like TaxBuddy. These platforms are designed to simplify the process, offering user-friendly interfaces and AI-powered assistance. TaxBuddy also provides expert assistance if needed, ensuring a smooth filing experience.

Q4. Can I file my ITR after the deadline without penalties?

If you miss the ITR filing deadline, you can still file a belated return until December 31, 2025, for FY 2024-25 (Assessment Year 2025-26). However, filing after the due date attracts penalties and interest. The penalty for filing late can be up to ₹5,000, and interest on unpaid taxes will be charged under sections 234A, 234B, and 234C of the Income Tax Act.

Q5. What happens if I fail to file ITR within the extended deadline?

If you miss the extended deadline of September 15, 2025, for FY 2024-25, you can still file a belated return by December 31, 2025, but this will incur penalties and interest. Additionally, the refund processing will be delayed, and you will not be eligible for certain benefits that are available to those who file within the prescribed timelines.

Q6. How do I check the status of my income tax refund?

To check the status of your income tax refund, visit the official Income Tax Department portal at incometax.gov.in. You will need your PAN (Permanent Account Number) and the relevant assessment year. Alternatively, if you have filed using TaxBuddy, you can track your refund status within the platform or reach out to their support team for assistance.

Q7. Does TaxBuddy assist with TDS credit verification?

Yes, TaxBuddy assists with verifying TDS credits. One of the key features of TaxBuddy is ensuring that your TDS credits are properly reflected before filing your return. If there are any discrepancies, the platform provides guidance to help you resolve the issue, ensuring accurate filing and minimizing delays in refund processing.

Q8. How long does it take for TaxBuddy to process an ITR filing?

The time it takes to process an ITR filing with TaxBuddy depends on the complexity of your tax situation. For simple returns, the process can be completed within a few hours. If expert assistance is required, the timeline may extend depending on the level of support needed. TaxBuddy aims to ensure a quick, efficient filing process, helping taxpayers receive their refunds as soon as possible.

Q9. What if I file ITR after the extended deadline?

If you file your ITR after the extended deadline of September 15, 2025, you can still file a belated return by December 31, 2025. However, you will face penalties and interest on any unpaid taxes. Additionally, filing after the extended deadline will delay the processing of your refund compared to those who file on time.

Q10. Are there penalties for errors in my ITR filing?

Yes, if there are errors in your ITR filing, such as incorrect income reporting or missing deductions, you may be subject to penalties. If the error is discovered after filing, you may need to file a revised return. Penalties for errors can include fines, interest on unpaid taxes, or a delay in processing your refund. To avoid these issues, it’s recommended to use platforms like TaxBuddy, which provide error-checking features.

Q11. Can I make corrections in my ITR after filing?

Yes, if you realize that there were mistakes in your ITR after filing, you can file a revised return. The revised return should be filed before the completion of the assessment year. If the mistake is related to TDS credits or income reporting, filing a revised return helps correct those errors and avoid penalties.

Q12. Does TaxBuddy support all tax regimes for ITR filing?

Yes, TaxBuddy supports all tax regimes for ITR filing, including the new tax regime and the old tax regime. Whether you are eligible for exemptions under the old tax regime or prefer the simplified new tax regime, TaxBuddy helps you select the best option, ensuring that you maximize your tax savings while staying compliant with the latest regulations.