top of page

File Your ITR now

FILING ITR Image.png
Search

How ITR Due Date Extensions Affect Businesses and Professionals Filing ITR 3 or 4

  • Writer: PRITI SIRDESHMUKH
    PRITI SIRDESHMUKH
  • 6 hours ago
  • 8 min read

The extension of the Income Tax Return (ITR) filing deadline for Financial Year 2024-25 (Assessment Year 2025-26) by the Central Board of Direct Taxes (CBDT) offers significant relief to taxpayers, both individual and business. The new deadline, extended from July 31, 2025, to September 15, 2025, allows more time for compliance, accuracy, and preparation. This extra time helps ensure that taxpayers can file accurate returns, minimize errors, and avoid last-minute stress. While this extension mainly benefits individual taxpayers, it has a broader impact on businesses and professionals. Companies and tax professionals must navigate various tax regulations, such as TDS credits, advance tax payments, and financial documentation. For businesses, the extension provides an opportunity for strategic tax planning, better cash flow management, and the chance to review deductions or exemptions. However, it also brings challenges, including increased workload for tax professionals and the potential for last-minute filings that could overwhelm the system.

Table of Contents

The Impact of ITR Due Date Extensions on Businesses and Professionals

For businesses and professionals, the extended ITR due date is a double-edged sword. On the one hand, it provides more time to ensure that tax filings are accurate and complete, which is crucial for managing complex corporate returns and minimizing the risk of errors. On the other hand, businesses and professionals need to account for a variety of tax issues that may require detailed planning, such as TDS (Tax Deducted at Source) credits, advance tax payments, and the reflection of various financial transactions.


This extension also impacts the operational timeline for tax professionals who manage multiple client accounts and filings. Although the added time allows for a thorough review of documents and calculations, it also means that professionals will experience increased workload and pressure as the new deadline approaches.


More Time for Compliance and Accuracy

One of the most notable benefits of the ITR deadline extension is the extra time provided for ensuring compliance and accuracy. Taxpayers and professionals can now devote more time to reviewing financial statements, verifying TDS credits, and gathering the required documentation. This reduces the likelihood of errors, which are common in complex returns, especially for businesses that deal with large volumes of transactions and tax deductions.


For businesses, the extra time also helps ensure that all mandatory documents, such as financial statements, audit reports, and tax calculations, are prepared with accuracy. It also provides an opportunity to address any discrepancies or queries raised by the tax authorities before submitting the returns. This proactive approach helps avoid penalties and reduces the risk of tax audits.


Operational Relief for Tax Professionals

Tax professionals, including accountants, tax consultants, and auditors, are among the most directly impacted by the ITR filing deadline extension. The additional time provides operational relief, allowing professionals to manage their workload more effectively. With the extended deadline, professionals can avoid the last-minute rush and ensure that each client’s return is filed correctly. This is especially important for businesses with complex financial structures or those requiring detailed tax audits.


While the extension eases the immediate pressure, it also means that tax professionals will be handling a larger volume of returns as clients take advantage of the extended deadline. This may lead to increased demand for services as businesses and individuals seek professional assistance. Additionally, the extension offers professionals a chance to offer more comprehensive tax planning services, ensuring that their clients are fully compliant and minimizing any potential liabilities.


Financial Planning and Cash Flow Management

The extra time provided by the deadline extension can significantly impact the financial planning of businesses. For companies, tax filings often play a crucial role in cash flow management, as the timely payment of taxes affects liquidity. The extension allows businesses to plan better and allocate resources for tax payments without disrupting their financial operations.


This additional time can also be used by businesses to assess their financial standing, optimize tax liabilities, and ensure that they are in a strong position to meet their tax obligations when the filing is eventually made. Cash flow issues are a common concern for businesses during tax season, and the extension provides an opportunity to manage these concerns more effectively.


Strategic Tax Planning Opportunities

For businesses and professionals, the extended filing deadline opens up valuable opportunities for strategic tax planning. This period of additional time enables businesses to assess their financial position in greater detail, consider their tax-saving investments, and explore deductions they may have overlooked previously. This is especially advantageous for corporations involved in international business or those with cross-border transactions that require careful tax planning.


Moreover, businesses can evaluate the impact of various tax regimes—old versus new—and choose the one that provides the most benefit based on their specific circumstances. The extension provides businesses with more time to seek professional advice on these strategies, ensuring they make informed decisions that can result in significant tax savings.


Why Was the ITR Due Date Extended?

The primary reason for the ITR due date extension is to provide taxpayers with additional time to accommodate changes and updates in the filing system. This includes revisions to ITR forms, new compliance requirements, and updates to the reflection of TDS credits in the system. The extension ensures that taxpayers have sufficient time to file accurate returns and take full advantage of available deductions, exemptions, and credits. The extension also aims to relieve the burden on businesses and tax professionals, who often face intense pressure as the filing deadline approaches.


In addition to system updates, the timing of TDS credit reflection and other regulatory changes has made it challenging for taxpayers to file their returns by the original deadline. This extension provides the necessary breathing space for all stakeholders to comply with the latest regulations.


Potential Challenges Despite the Extension

Although the extended ITR deadline brings relief, it also presents potential challenges. The extension is likely to result in a higher volume of last-minute filings, which may lead to system overloads and delays in processing. The rush to file before the new deadline could cause bottlenecks, especially as businesses and professionals scramble to complete their returns.


Additionally, the additional time to file may lead to complacency, with some taxpayers postponing their filings and potentially facing rushed and inaccurate submissions in the final days before the deadline. This can result in errors that may trigger audits, penalties, or delays in refund processing.


Conclusion

The ITR due date extension for FY 2024-25 offers valuable relief for both businesses and professionals, providing more time for compliance, accuracy, and strategic tax planning. While it allows for better preparation and reduces the likelihood of errors, the extension also introduces the potential for increased workloads and delays as the final deadline approaches. Businesses can take advantage of this time to improve their financial planning, optimize cash flow, and explore tax-saving opportunities. Tax professionals, too, can benefit from the additional time to ensure that all client filings are accurate and compliant.


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, providing flexibility for taxpayers based on their comfort level and the complexity of their tax filing needs. If you're familiar with the tax filing process, you can choose self-filing, which provides tools and guidance to file on your own. However, if you prefer professional assistance, TaxBuddy's expert-assisted plans offer the support of qualified tax professionals to ensure your return is accurate and compliant.


Q2: Which is the best site to file ITR?

The best site to file your ITR depends on your needs. TaxBuddy offers a comprehensive, easy-to-use platform with both self-filing and expert-assisted options, making it an excellent choice for most taxpayers. It simplifies the filing process, ensures compliance with tax laws, and provides additional support if required. The official Income Tax Department portal is also an option, but it may not offer the same level of guidance or user-friendly features.


Q3: Where to file an income tax return?

You can file your ITR on the official Income Tax Department portal atincometax.gov.in or use platforms like TaxBuddy, which make the filing process easier and provide expert assistance when needed. TaxBuddy’s platform is ideal for those who need help navigating the complexities of ITR filing, ensuring that you submit an accurate return and avoid common mistakes.


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

No, filing your ITR after the deadline incurs penalties and interest. However, you can still file a belated return within the assessment year. Filing after the due date will lead to fines (up to ₹5,000) and interest on any unpaid taxes under sections 234A, 234B, and 234C. Therefore, it is always best to file your return on time to avoid additional charges.


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

If you miss the extended ITR filing deadline of September 15, 2025, for FY 2024-25 (Assessment Year 2025-26), you can still file a belated return by December 31, 2025. However, you will incur penalties and the processing of your refund will be delayed. Additionally, any pending taxes will attract interest, and you may face scrutiny from the tax authorities.


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

You can check the status of your income tax refund on the official Income Tax Department portal by logging in with your PAN and assessment year details. Alternatively, if you filed through TaxBuddy, you can track the status of your refund directly through the platform or get assistance from TaxBuddy’s support team.


Q7: Does TaxBuddy assist with TDS credit verification?

Yes, TaxBuddy helps verify TDS credits and ensures they are accurately reflected in your tax return. This is crucial for avoiding mismatches or errors in your filing, which can delay the processing of refunds. TaxBuddy's system ensures that your TDS details match the records, reducing the chance of any issues during refund processing.


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

TaxBuddy strives to process returns quickly. Simple returns can often be filed within a few hours, while expert-assisted filings may take longer depending on the complexity of your tax situation. The platform ensures that your return is accurately filed, with minimal delays. You will also receive timely updates on the status of your filing and any necessary actions.


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

If you file after the extended deadline of September 15, 2025, you can still file a belated return by December 31, 2025. However, this will result in penalties and interest on any unpaid taxes. Additionally, the processing of your refund will be delayed as belated returns are processed after on-time filings.


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

Yes, errors in your ITR filing can lead to penalties, interest on unpaid taxes, and delays in processing your refund. Common mistakes such as incorrect income reporting or missing deductions can trigger scrutiny from the tax authorities. To avoid these issues, it’s best to use a reliable platform like TaxBuddy, which provides tools for error-free filing and offers professional assistance when needed.


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

Yes, you can file a revised return if you discover mistakes after filing. The revised return can be filed before the end of the assessment year to correct any errors, such as incorrect income reporting or missed deductions. Filing a revised return helps you avoid penalties and ensures that your taxes are filed correctly.


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

Yes, TaxBuddy supports both the old and new tax regimes, allowing you to choose the regime that provides the maximum benefit. TaxBuddy’s system helps you evaluate the best option based on your income, deductions, and financial goals, ensuring that your tax filing is optimized for the lowest possible tax liability.


Related Posts

See All

Comments

bottom of page