Revised Due Dates for ITR Filing: What Changes for Freelancers, Businesses, and NRIs?

The Central Board of Direct Taxes (CBDT) has extended the Income Tax Return (ITR) filingdeadline 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 offers significant relief to both individual taxpayers and businesses, especially given the ongoing updates to ITR forms, system integration, and TDS credit verification processes. For freelancers, businesses, and non-resident Indians (NRIs), this extension presents opportunities to file accurate returns without rushing, but also comes with challenges, such as increased workload for tax professionals and the potential for last-minute filings causing system bottlenecks. Taxpayers must ensure they file before the extended deadline to avoid penalties, which could include fines and delayed refunds. Let's explore the impact of the new deadlines on different groups, the reasons for the extension, and what happens if you miss the new due dates, helping taxpayers navigate these crucial changes.

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Table of Contents

• Revised Due Dates for ITR Filing

• Why Were the ITR Filing Deadlines Extended?

• Impact of Revised Deadlines on Freelancers

• Revised ITR Filing Deadlines for Businesses and Audit Cases

• What Changes for Non-Resident Indians (NRIs)?

• Penalties for Missing the New ITR Filing Deadlines

• Conclusion

• FAQs

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Revised Due Dates for ITR Filing

The Central Board of Direct Taxes (CBDT) has revised the Income Tax Return (ITR) filing deadlines for Financial Year (FY) 2024-25 (Assessment Year 2025-26). The extended deadlines provide taxpayers additional time to file their returns accurately, especially in light of significant changes to the ITR forms, system updates, and the need for proper reflection of Tax Deducted at Source (TDS) credits. Below are the new deadlines and their specific application to various categories of taxpayers:

For Individuals, HUFs, AOPs, and BOIs (Without Audit)

The deadline for filing ITR for individual taxpayers, Hindu Undivided Families (HUFs), Associations of Persons (AOPs), and Bodies of Individuals (BOIs), who do not require an audit, has been extended from the original date of July 31, 2025, to September 15, 2025. This category primarily includes salaried individuals, pensioners, and non-business taxpayers. The extension allows taxpayers to ensure they have all necessary documents (such as Form 16, TDS certificates, bank statements, etc.) to file their returns accurately. The extension also helps in reducing the risk of errors or discrepancies in returns due to rushed filings.

For Businesses Requiring an Audit (Section 44AB)

Businesses that require an audit under Section 44AB of the Income Tax Act now have until October 31, 2025 to file their ITRs. This includes businesses with turnover or gross receipts exceeding ₹1 crore (or ₹5 crore in case of digital transactions). The additional time allows businesses to complete their financial audits, reconcile their books of accounts, and gather the necessary documents, ensuring that the returns are filed accurately and on time. For many businesses, this extension is crucial to ensure all audit reports are finalized and submitted along with the ITR.

For Businesses with Transfer Pricing

Companies dealing with transfer pricing—those that engage in international or domestic transactions between related entities—have an extended deadline until November 30, 2025. This extended deadline ensures that businesses involved in transfer pricing have enough time to compile detailed reports on their inter-company transactions, prepare necessary documentation, and ensure compliance with relevant transfer pricing regulations. These businesses must file comprehensive reports detailing the pricing arrangements between related parties, which can take additional time to prepare, especially for multinational corporations.

For Belated Returns

Taxpayers who miss the original or extended deadlines can still file their ITR as a belated return by December 31, 2025. However, belated returns attract penalties and interest on any unpaid taxes. The penalty for filing a belated return can be as high as ₹5,000, depending on the timing of the filing. Additionally, interest is charged under Sections 234A, 234B, and 234C of the Income Tax Act, further increasing the liability for late filers. It is always advisable to file before the extended deadline to avoid penalties and delays in processing refunds.

For Updated Returns

Taxpayers who realise there are errors in their filed returns have the option to file an updated return under Section 139(8A). The deadline for filing updated returns for FY 2024-25 (Assessment Year 2025-26) is March 31, 2030. This provision allows taxpayers to correct mistakes in their filed returns, such as missed deductions or inaccurate income reporting. Filing an updated return ensures that taxpayers remain compliant with the law, avoid penalties, and correct any errors that may have been made during the initial filing.

These extensions were introduced to give taxpayers more time to prepare and file their returns accurately, particularly in light of changes in tax regulations and the increased complexity of tax forms. Taxpayers are encouraged to file as early as possible to avoid last-minute rushes, penalties, and delayed refund processing.

Why Were the ITR Filing Deadlines Extended?

The extension of the ITR filing deadline is primarily due to several factors:

• Revised ITR Forms: Significant revisions have been made to the Income Tax Return forms for FY 2024-25. These changes aim to streamline the filing process, enhance transparency, and improve compliance. However, these revisions required more time for taxpayers to adapt to the new forms and for professionals to assist in ensuring accuracy.
  

• System Updates: There was a need for updates in the tax filing system to accommodate the new ITR forms and ensure proper integration of TDS credit reflection. The system upgrades, including technical integration and testing, were crucial for accurate filing.
  

• TDS Credit Reflection: The timing of the Tax Deducted at Source (TDS) credits plays an important role in filing accurate returns. TDS statements are typically due by May 31, 2025, and may take additional time to reflect in the system, which is why the extension was granted to ensure all relevant credits are accurately reflected before filing.

This extension ensures that taxpayers have the necessary time to file accurate returns, thus preventing errors and potential penalties.

Impact of Revised Deadlines on Freelancers

The extension of the ITR filing deadline is especially beneficial for freelancers, who often deal with complex tax scenarios. Freelancers may not have the same organized financial systems as businesses, and may need additional time to compile their income details, deductions, and other necessary documents. The revised deadline of September 15, 2025, gives freelancers more time to:

• Accurately Calculate Income: Freelancers often have variable income streams that require time for proper organization. The extended deadline allows for more accurate reporting of earnings from various sources.
  

• Verify Deductions: Freelancers can now ensure that all eligible deductions, such as those under Section 80C, Section 80D, and others—are claimed, minimizing tax liabilities.
  

• Seek Professional Help: With more time, freelancers can opt for professional assistance to ensure that their returns are filed correctly, reducing the risk of errors that could trigger penalties or delays.

While the extended deadline provides relief, freelancers should avoid procrastinating, as filing closer to the deadline can lead to delays in refund processing.

Revised ITR Filing Deadlines for Businesses and Audit Cases

Businesses that require an audit under Section 44AB of the Income Tax Act now have until October 31, 2025, to file their ITR. This extension benefits businesses that need to organize their financial statements, conduct audits, and review their tax calculations before filing. Some of the key impacts on businesses are:

• Time to Finalize Audits: Businesses that require audits now have more time to ensure that their financial records are in order and that the audit is completed correctly.
  

• Minimizing Errors: The extension helps businesses avoid rushing their filings and allows them to correct any discrepancies or errors in financial statements.
  

• TDS and Other Deductions: Businesses can ensure that TDS credits and other deductions are accurately reflected in the system, avoiding any refund delays.

For businesses with complex financial structures or those involved in international transactions, this extension offers an opportunity to ensure that all tax aspects are thoroughly reviewed and accurately filed.

What Changes for Non-Resident Indians (NRIs)?

The extension also impacts Non-Resident Indians (NRIs) who must file their ITR in India. NRIs often face unique challenges, such as accessing Indian financial documents and ensuring that all income earned abroad is accurately reported. With the new deadline of September 15, 2025, NRIs will have more time to:

• Gather Global Income Details: NRIs often need extra time to collect income details from abroad and ensure that foreign income is reported accurately, which is crucial for proper tax calculation.
  

• Ensure Accurate Tax Credits: TDS credits for foreign income may require additional verification. The extension gives NRIs the time to confirm that all TDS credits from India and abroad are reflected accurately.
  

• Resolve Complex Tax Issues: NRIs may also face issues related to Double Taxation Avoidance Agreements (DTAA). The extension allows them to seek professional help in ensuring that they are properly complying with tax laws.

Penalties for Missing the New ITR Filing Deadline

Although the extended Income Tax Return (ITR) filing deadlines for FY 2024-25 (Assessment Year 2025-26) provide valuable relief to taxpayers, it is crucial to understand that missing these deadlines can still lead to significant penalties and delays. Filing your return after the deadline can result in several negative consequences. Here's a detailed look at what happens if you fail to meet the extended filing deadline:

1. Late Fees: When you file a belated return after the extended deadline, a penalty is imposed. The penalty for late filing can be as high as ₹5,000, depending on the timing and amount involved. However, if the total income of the taxpayer is below ₹5 lakh, this penalty is reduced to ₹1,000. This penalty applies to any return filed after the new extended deadline, even if you’re filing for the first time. Therefore, timely filing is essential to avoid this unnecessary cost. The late fee is intended to encourage taxpayers to file on time and prevent delays in the tax collection process. While the penalty for late filing might seem relatively minor in some cases, it can add up significantly for individuals and businesses with larger tax liabilities.

   
   

2. Interest on Taxes Due: If there are any taxes due after filing your ITR, you will be required to pay interest under sections 234A, 234B, and 234C of the Income Tax Act. Interest is levied on unpaid taxes when the return is filed late, and the amount depends on both the amount of tax owed and the delay in filing:
   

   • Section 234A: This provision imposes interest for the delay in filing your return. The rate of interest is 1% per month (or part of the month) on the unpaid tax amount from the original due date until the date of actual filing. This means that even a one-month delay could result in a significant interest charge.
     

   • Section 234B: This section applies when there is a failure to pay advance tax. If the taxpayer has not paid at least 90% of their total tax liability through advance tax or TDS, interest at the rate of 1% per month is charged on the unpaid amount from the beginning of the assessment year until the return is filed.
     

   • Section 234C: Interest under Section 234C is applicable when the advance tax payments made are less than what is due. This section penalizes taxpayers who underpay their advance tax, which is then added to the total tax payable when filing the return. The interest under Section 234C is calculated at the rate of 1% per month for the period of underpayment.
     

   The overall interest amount can add up quickly, and it’s crucial for taxpayers to file their returns and make timely payments to avoid these additional costs.
   

3. Delay in Refund Processing: Filing after the deadline not only brings financial penalties but also leads to delays in the processing of refunds. The Income Tax Department prioritizes the processing of timely filed returns. Returns filed after the deadline—particularly belated ones—are processed later, meaning that any refunds due to the taxpayer will be delayed. For taxpayers who rely on refunds for their financial planning, this delay can be inconvenient. In the case of businesses or individuals who expect to use the refund to meet other obligations, this delay could disrupt their cash flow and financial operations. It's important to understand that late filing extends not just the time before you get your refund, but also the uncertainty associated with its receipt.
   

4. Additional Scrutiny: Filing after the deadline can increase the chances of your return being subject to additional scrutiny by the Income Tax Department. The longer the delay in filing, the greater the likelihood that your return will be flagged for manual review or further verification. This can delay the entire process, making it harder to resolve any issues or discrepancies quickly.
   

5. Ineligibility for Certain Benefits: Failing to file by the deadline can make you ineligible for certain benefits and deductions. For example, taxpayers may miss out on the opportunity to carry forward losses that could be used to offset taxable income in future years. Additionally, certain tax benefits and rebates are only available if the return is filed on time.

Conclusion

The revised ITR filing deadlines for FY 2024-25 provide much-needed relief for taxpayers, businesses, and NRIs alike. The extension of deadlines to September 15, 2025, helps ensure compliance and allows for more accurate filings. While businesses and freelancers benefit from additional time for tax planning and accurate filing, NRIs can use the extended time to address complex tax scenarios. However, it is crucial to be mindful of the penalties associated with missing the new deadlines. Filing on time, or as early as possible, remains the best strategy to avoid complications.

Frequently Asked Question (FAQs)

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

Yes, TaxBuddy offers both self-filing and expert-assisted plans. You can choose to file on your own with guidance and helpful tools or opt for expert assistance if you prefer professional support for more complex filings. TaxBuddy ensures that taxpayers have the flexibility to select the plan that best suits their needs.

Q2: Which is the best site to file ITR?

The best site to file your ITR depends on your preferences. TaxBuddy offers an excellent platform for ITR filing, providing both self-filing and expert-assisted plans. With its user-friendly interface, AI-driven tools, and professional support, TaxBuddy ensures a seamless, hassle-free filing experience. Alternatively, you can file directly on the Income Tax Department portal, but TaxBuddy’s platform is designed for simplicity and accuracy, especially for individuals seeking guidance.

Q3: Where to file an income tax return?

You can file your ITR on the official Income Tax Department portal at incometax.gov.in, or for a more streamlined and supportive filing process, you can use platforms like TaxBuddy. TaxBuddy offers an intuitive interface and expert assistance, making it an ideal choice for taxpayers who want to ensure error-free and timely submissions.

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

No, you cannot file your ITR after the deadline without penalties. Filing after the deadline will incur penalties and interest on any unpaid taxes. You can still file a belated return by December 31, 2025, for FY 2024-25 (Assessment Year 2025-26), but additional penalties and delays in refund processing will apply. It is always advisable to file within the deadline to avoid these extra charges.

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

If you fail to file your ITR within the extended deadline of September 15, 2025, you can still file a belated return by December 31, 2025. However, you will incur penalties and your refund processing will be delayed. Missing the deadline also increases the chances of scrutiny from the Income Tax Department, which could lead to additional complications.

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’s e-filing portal. You can track the status by entering your PAN and the relevant assessment year details. If you filed using TaxBuddy, you can also track your refund status directly within the platform, or you can reach out to their support team for assistance.

Q7: Does TaxBuddy assist with TDS credit verification?

Yes, TaxBuddy helps verify TDS credits to ensure they are accurately reflected in your return. This service reduces the chances of discrepancies and errors, which can otherwise delay your refund processing. TaxBuddy’s system automatically checks for any mismatches, helping to streamline the filing process.

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

TaxBuddy processes simpler filings quickly, often completing them within a few hours. However, for more complex filings, especially those that require expert assistance or involve detailed documentation, the process may take longer. TaxBuddy’s team works efficiently to ensure your return is processed promptly while ensuring compliance.

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, the belated return will incur penalties and interest on any unpaid taxes. Additionally, the processing of your refund will be delayed, as the Income Tax Department processes timely returns first.

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. Mistakes such as incorrect income reporting, missing deductions, or discrepancies with TDS credits can trigger penalties and result in the need for corrections or revised returns. It is essential to double-check your filing to avoid these issues.

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

Yes, if you discover errors in your ITR after filing, you can file a revised return to correct those mistakes. The revised return should be filed before the end of the assessment year. Filing a revised return helps 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. It helps you choose the most beneficial option based on your financial situation, ensuring you maximize tax savings. TaxBuddy’s system guides you through the process, making it easier to evaluate the benefits of both regimes before selecting the one that suits your needs best.