New ITR Filing Deadline for FY 2024–25: Who Benefits from the September 15 Extension?

The Central Board of Direct Taxes (CBDT) has officially extended the Income Tax Return (ITR) filing deadline for the Financial Year 2024-25 (Assessment Year 2025-26) from the original due date of July 31, 2025, to September 15, 2025. This extension provides taxpayers, businesses, and professionals with additional time to file their returns, ensuring compliance with the latest tax regulations. The extension comes as a relief to many, offering an opportunity to address any pending documentation, verify Tax Deducted at Source (TDS) credits, and avoid last-minute filing stress. While the deadline extension benefits individual taxpayers, it also impacts businesses and tax professionals, affecting their filing strategies and operational timelines.

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Table of Contents

• Who Benefits from the September 15 Extension?

• Why Was the Deadline Extended?

• Key Points and Consequences

• Conclusion

• FAQs

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Who Benefits from the September 15 Extension?

The extension of the ITR filing deadline to September 15, 2025, benefits various stakeholders, including individuals, businesses, and tax professionals:

• Individuals: For most salaried individuals and those with simple tax situations, the extension provides valuable time to ensure their tax returns are filed accurately. It allows individuals to review their tax deductions, TDS credits, and any applicable exemptions more thoroughly. Those who have complicated returns, such as those involving multiple income sources or foreign income, can use this time to seek professional assistance, ensuring compliance with all tax requirements.
  

• Businesses: Businesses that require auditing (under Section 44AB) benefit greatly from the extension, as it provides extra time for compiling financial statements, completing audits, and gathering the necessary documentation. Businesses with complex financials can use this time to optimize their tax planning strategies and avoid mistakes in their tax filings.
  

• Tax Professionals: Tax consultants, accountants, and auditors also benefit from the extension, as it allows them to manage their workloads more effectively. With the extra time, they can ensure that their clients' filings are complete and accurate, reducing the chances of errors or omissions that could trigger audits or penalties.

Why Was the Deadline Extended?

The Central Board of Direct Taxes (CBDT) extended the Income Tax Return (ITR) filing deadline for the Financial Year 2024-25 (Assessment Year 2025-26) from July 31, 2025, to September 15, 2025, to accommodate a series of challenges faced by taxpayers, businesses, and the Income Tax Department. Several factors contributed to the decision, all of which were essential to ensuring that tax filings were accurate, timely, and compliant with the updated requirements. Let's explore these reasons in more detail:

Revised ITR Forms

For FY 2024-25, the Income Tax Return (ITR) forms underwent significant revisions. These changes were introduced with the aim of simplifying the filing process, increasing transparency, and ensuring more accurate reporting. However, these revisions also meant that taxpayers needed more time to familiarize themselves with the new forms. The complexity of tax laws, combined with updated reporting requirements, made it difficult for many taxpayers to navigate the new forms and file their returns without potential errors.

The revised forms introduced new fields, additional questions, and sections for taxpayers to fill in, requiring more detailed information than before. For instance, taxpayers now need to provide more comprehensive data regarding their income sources, deductions, and tax credits. While these changes were necessary to ensure better compliance, they posed a challenge for those accustomed to previous versions of the forms. Therefore, the extension was granted to give taxpayers sufficient time to understand the updates and file their returns correctly.

System Readiness

Another key reason for the deadline extension was the need to update and test the technical systems used for processing ITRs. These systems needed to be upgraded to accommodate the new ITR forms, as well as changes in tax regulations and compliance procedures. These updates involved significant development, testing, and integration work, which could not be completed within the original timeline.

The Income Tax Department’s e-filing system had to be adjusted to handle the revisions in the forms, ensuring that it could process returns accurately and efficiently. This included updating the system’s back-end infrastructure to handle new fields and reporting requirements, as well as ensuring that the filing process was smooth for all users. The extension provided the additional time needed to finalize these updates, ensuring that the system would function optimally and handle the increased volume of filings expected in the extended period.

TDS Credit Reflection

TDS (Tax Deducted at Source) credit reflection was another major factor behind the decision to extend the deadline. TDS statements are typically due to be issued by May 31, 2025, but they only reflect in the system in early June. These TDS credits are crucial for accurate tax filing, as they help taxpayers reconcile their taxes paid during the year. Filing returns before these TDS credits are updated could lead to discrepancies in the tax computation, causing mismatches and delays in the refund process.

The extension was designed to ensure that all TDS credits were properly reflected before taxpayers filed their returns. This was especially important for those whose TDS information might have been incomplete or inaccurately reported earlier in the year. By allowing taxpayers additional time to wait for the updated TDS credits, the extension helped prevent filing errors and the potential delays that would occur if returns were filed before the necessary updates were made. This also ensured that taxpayers could avoid unnecessary delays in receiving their refunds.

Key Points and Consequences

The extension of the Income Tax Return (ITR) filing deadline for FY 2024-25 (Assessment Year 2025-26) brings both benefits and challenges for taxpayers and professionals. While the extra time provides relief, it also introduces potential issues that can affect the filing process, refund timelines, and workload. Below, we explore these key points and consequences in detail:

Timely Filing

One of the most important advantages of the ITR filing deadline extension is the opportunity it provides for taxpayers to file their returns accurately and without haste. The original deadline often led to last-minute filings, increasing the likelihood of errors or omissions in the return. These mistakes could result in penalties, audits, or delays in processing refunds. The extended deadline allows taxpayers more time to gather the necessary documentation, review their financial statements, and ensure that all applicable deductions and credits are included in their returns.

By filing on time, taxpayers avoid penalties and interest charges on any unpaid taxes. This is crucial for both individuals and businesses, as these additional charges can significantly increase the amount owed to the government. Filing on time also ensures that taxpayers can start processing their refunds promptly, helping businesses with cash flow and individual taxpayers with financial planning. While filing within the extended deadline is still beneficial, early filing ensures that taxpayers are at the front of the queue for processing.

Last-Minute Rush

Although the extension provides extra time, it also introduces the potential for a last-minute rush as the new deadline approaches. Many taxpayers and professionals may delay filing until the final days of the extended deadline, which can overwhelm the tax filing system. This surge in filings can lead to system overloads, resulting in slower processing times for those who file at the last minute.

Moreover, this rush may create bottlenecks in the backend of the filing system, causing delays for taxpayers. While this issue can be mitigated by filing early, the reality is that many taxpayers will wait until the deadline nears. The risk here is twofold: the chance of delayed refunds for late filers, and the potential for errors if returns are rushed at the last moment. Early filing remains a strategic advantage, as it not only helps ensure the accurate filing of returns but also expedites refund processing.

Belated Returns

If taxpayers miss the extended deadline of September 15, 2025, they can still file their returns as a belated return until December 31, 2025. However, there are significant consequences for filing after the deadline. Filing a belated return means that taxpayers will incur penalties, which can be up to ₹5,000, depending on how late the filing is. Additionally, interest will be charged on any unpaid taxes, which further increases the amount due.

Not only do taxpayers face financial penalties, but belated returns are processed after on-time returns. This means that refund processing for belated returns will be delayed, often significantly. Taxpayers who file late will have to wait longer to receive their refunds, which can disrupt financial planning, especially for businesses that rely on timely refunds for cash flow. Therefore, while belated returns are allowed, filing on time remains critical for avoiding additional costs and delays.

Increased Workload for Professionals

The extension of the filing deadline also impacts tax professionals who handle multiple client returns. While the extra time can help professionals provide better services, it also means they will face a larger workload as the deadline approaches. This increased workload, particularly in the final days before the deadline, may lead to stress and a potential backlog of returns.

Tax professionals who are managing numerous clients may find it difficult to provide thorough and personalized assistance as the deadline draws closer. This could result in rushed filings, increased chances of errors, and potential delays in filing for clients who wait until the last minute. Additionally, tax professionals may experience increased pressure as they try to manage client expectations, handle complex returns, and ensure compliance with the updated tax rules.

While the extension provides more time to file, it also brings additional challenges for professionals who must balance a high volume of work. The key for both taxpayers and professionals is to avoid waiting until the final moments to file, as early action helps mitigate stress and ensures that returns are filed correctly and promptly.

The extended ITR filing deadline for FY 2024-25 (Assessment Year 2025-26) provides significant relief, allowing more time for taxpayers to file accurately and avoid penalties. However, it also creates the potential for a last-minute rush, delayed refunds for late filers, and added pressure on tax professionals managing multiple returns. To avoid these issues, early filing remains the best strategy, ensuring that returns are filed on time, penalties are avoided, and refunds are processed promptly.

Conclusion

The extension of the ITR filing deadline provides much-needed relief, allowing taxpayers, businesses, and tax professionals to file accurate returns with adequate time for review and corrections. While it ensures compliance, it also introduces potential challenges such as system overload and last-minute filings. Taxpayers should aim to file early to avoid delays and ensure they take advantage of the extended time to maximize their tax benefits. Professional platforms like TaxBuddy can help streamline the filing process, providing expert assistance and ensuring timely, error-free submissions.

FAQs

Q1: Does TaxBuddy offer both self-filing and expert-assisted plans for ITR filing, or only expert-assisted options?

Yes, TaxBuddy provides both self-filing and expert-assisted options. Self-filing allows individuals who are familiar with the filing process to complete their returns on their own with guidance. For more complex filings, TaxBuddy offers expert assistance from tax professionals to ensure compliance and accuracy.

Q2: Which is the best site to file ITR?

TaxBuddy is an excellent platform to file your ITR, offering a user-friendly interface, AI-driven support, and the option for expert assistance. It simplifies the process, ensuring error-free filing while providing timely updates and support throughout the filing process.

Q3: Where to file an income tax return?

You can file your ITR on the official Income Tax Department portal or use platforms like TaxBuddy, which streamline the filing process. TaxBuddy provides tools to ensure accuracy, as well as expert assistance when required.

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

No, filing after the deadline incurs penalties. However, taxpayers can still file a belated return by December 31, 2025, but this will attract a late filing fee and interest on any unpaid taxes.

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

If you miss the extended deadline of September 15, 2025, you can still file a belated return by December 31, 2025. However, you will incur penalties and interest, and your refund will be delayed compared to those who file on time.

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

You can track the status of your refund on the official Income Tax Department portal using your PAN number and assessment year. Alternatively, TaxBuddy users can check refund statuses directly through the platform.

Q7: Does TaxBuddy assist with TDS credit verification?

Yes, TaxBuddy assists with verifying and reconciling TDS credits. The platform ensures that all TDS details are accurately reflected, helping to avoid mismatches and delays in refund processing.

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

TaxBuddy aims to process returns as quickly as possible. Simple filings may be processed within hours, while more complex cases requiring expert assistance may take longer. TaxBuddy ensures timely filing and accuracy for all types of returns.

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

You can still file a belated return by December 31, 2025, but you will incur penalties and your refund will be processed later. Filing after the deadline also means additional interest charges on any unpaid taxes.

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 refund processing. It is crucial to file accurate returns to avoid complications. Platforms like TaxBuddy help ensure your filing is error-free.

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

Yes, if you realize there is an error in your filed ITR, you can file a revised return. The revised return must be filed before the end of the assessment year, and it will correct any discrepancies, avoiding penalties or further delays.

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

Yes, TaxBuddy supports both the old and new tax regimes for ITR filing. Taxpayers can choose the regime that suits their financial situation, and TaxBuddy helps with the calculations to determine which option provides the most benefit.