September 15 ITR Deadline: What Salaried Employees Must Do Before the Cut-Off

The extended deadline for filing Income Tax Returns (ITR) for the Financial Year 2024-25 (Assessment Year 2025-26) provides much-needed relief to salaried employees, now extended from July 31, 2025, to September 15, 2025. This extra time allows employees to ensure their tax returns are accurate and complete, giving them the opportunity to gather necessary documents, verify details, and claim all eligible deductions. However, while this extension offers additional time, salaried employees must be diligent in staying on top of their tax filing requirements. The key steps to take before the September 15 deadline include reviewing your Form 16, ensuring all income and deductions are accounted for, and confirming the TDS credits. Failure to meet the deadline can lead to penalties and delays in refund processing.

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Table of Contents

• What Salaried Employees Must Do Before the September 15 Deadline

• What Happens If You Miss the September 15 Deadline?

• Conclusion

• FAQs

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What Salaried Employees Must Do Before the September 15 Deadline

As a salaried employee, filing your Income Tax Return (ITR) accurately and on time is crucial to avoid penalties and ensure that you pay the correct amount of taxes. With the extended deadline of September 15, 2025, for the Financial Year 2024-25 (Assessment Year 2025-26), it’s the perfect time to prepare your documents and follow the right steps. Below is a detailed guide on how to file your ITR as a salaried individual.

1. Collect Form 16

Form 16 is a critical document provided by your employer that outlines the salary you’ve earned throughout the year and the Tax Deducted at Source (TDS) on your income. This form contains detailed information such as:

• Total Salary: The overall salary earned, including basic pay, allowances, and bonuses.
  

• TDS Deducted: The amount of tax that has been deducted from your salary by your employer. This is important because the amount of TDS deducted is what will be adjusted against your final tax liability.

It is important to ensure that you have the final version of Form 16, as this form should reflect all the deductions and correct TDS figures for the year. Sometimes, employers may issue an earlier version before the tax year ends, which might not include all deductions or adjustments. Any discrepancies between the salary reported in Form 16 and your actual income can lead to errors in your filing, so always confirm that the final version is accurate and reflects the correct data.

2. Review TDS Credit

Once you have received Form 16, you need to verify that the TDS credit mentioned in it aligns with the details shown in Form 26AS, which is a statement issued by the Income Tax Department. Form 26AS is a comprehensive document that lists all TDS credits and reflects other tax payments and deductions against your PAN (Permanent Account Number). It serves as an official record of the taxes you’ve already paid through TDS.

Here’s how to ensure that the TDS credit is correct:

• Check for Discrepancies: Cross-check the amount of TDS deducted on your salary as shown in Form 16 with the TDS credit in Form 26AS.
  

• Resolve Discrepancies: If there is a mismatch between the two, it’s important to get them corrected by your employer or the concerned authority before filing your return. Mismatches can delay your refund or cause your return to be rejected, as the Income Tax Department may flag discrepancies during processing.

If everything matches correctly, this means the tax has been deducted and deposited correctly on your behalf, and you can proceed with filing your return.

3. Ensure All Deductions Are Accounted For

As a salaried employee, you are eligible for various tax deductions under different sections of the Income Tax Act. These deductions significantly reduce your taxable income and, consequently, your tax liability. Make sure to account for the following deductions:

• Section 80C: This is one of the most commonly used deductions for salaried employees. It covers deductions for investments made in the Provident Fund (PF), Public Provident Fund (PPF), National Savings Certificates (NSC), and Life Insurance Premiums. Ensure that you have claimed all deductions you are entitled to under this section.
  

• Section 80D: This section provides deductions for premiums paid towards health insurance. You can claim deductions for policies taken for yourself, your family, and your parents (if they are senior citizens).
  

• Section 10(14): If you receive House Rent Allowance (HRA) as part of your salary, you can claim deductions under this section, provided you meet the conditions laid out by the tax department.
  

• Other Deductions: In addition to the above, there are other deductions available for expenses such as tuition fees, medical expenses for differently-abled dependents, and donations to charitable organizations.

Make sure that you have all the necessary documents to prove your deductions. For example, you’ll need insurance receipts, PPF statements, and tuition fee receipts to substantiate your claims.

4. Reconcile Salary Income

Before filing your ITR, it’s essential to cross-check your total salary income. This should include the salary income reported in Form 16 and Form 26AS. Additionally, you must ensure that any other income sources, such as freelance work, rental income, or interest on savings, are also included in your total income.

Here are a few steps to ensure the accuracy of your salary income:

• Verify Form 16 and Form 26AS: Compare the total salary reported in Form 16 with the amount of TDS shown in Form 26AS. If both match, you’re on the right track.
  

• Include Other Income: If you have any income from sources other than your salary (e.g., interest from savings accounts, income from investments), ensure that this income is also included in your total income. Failing to report all income sources could lead to penalties.

Having accurate salary income documentation helps you file the correct tax return and avoid mistakes during the assessment.

5. Prepare Bank Details and Other Supporting Documents

For efficient processing of your refund, ensure that you have your bank account details ready, especially your account number and IFSC code. This is essential for the Income Tax Department to transfer any tax refund due to you directly into your bank account.

Additionally, gather all other supporting documents that may be required to substantiate your deductions or exemptions. These may include:

• Medical receipts for claiming deductions under Section 80D (Health Insurance).

• Loan repayment schedules for deductions on home loan interest under Section 24(b).

• Investment proofs for deductions under Section 80C and other relevant sections.

By preparing these documents ahead of time, you ensure that your ITR filing is seamless and without errors, reducing the chances of delays or rejections.

What Happens If You Miss the September 15 Deadline?

If you miss the September 15, 2025, deadline for filing your Income Tax Return (ITR), you are still allowed to file a belated return until December 31, 2025. However, failing to meet the prescribed deadline has several significant consequences, ranging from financial penalties to delayed processing of your refund and the loss of certain tax benefits. Let’s explore these consequences in more detail:

Penalties and Interest

One of the most immediate impacts of filing a belated return is the imposition of penalties and interest. Under Section 234F of the Income Tax Act, taxpayers who file after the deadline are subject to a penalty. The penalty for filing a return after the deadline can be as high as ₹5,000, depending on how long after the due date the return is filed. This penalty applies regardless of whether the taxpayer has any unpaid taxes or not.

In addition to the penalty, interest will be levied on any unpaid tax under Sections 234A, 234B, and 234C.

• Section 234A imposes interest for delay in filing the return. This interest is calculated at 1% per month on the amount of tax due, from the due date of filing until the actual date of filing the return.
  

• Section 234B applies interest if the taxpayer fails to pay the advance tax or underestimates the advance tax liability. This interest is charged at 1% per month on the outstanding tax liability until it is paid.
  

• Section 234C applies to the underpayment of advance tax. If the advance tax is less than what is required, interest is charged at 1% per month on the shortfall for each quarter.

These penalties and interest can significantly increase your tax liability and make the filing process much more expensive than if you had filed on time. Therefore, it’s always advisable to file your return as soon as possible to avoid these additional costs.

Delayed Refund Processing

Another consequence of filing a belated return is the delay in the processing of your refund. When you file a return on time, the Income Tax Department prioritizes the processing of those returns, and you are more likely to receive your refund promptly. However, if you file after the deadline, your return will be processed only after timely filed returns have been processed. This can lead to a significant delay in receiving your refund.

If you're relying on a refund to manage your finances, this delay can cause a disruption in your cash flow. The processing system prioritizes returns filed on time, and with the volume of belated returns, it could take several weeks or even months for your refund to be issued. The delay may also impact your ability to meet other financial obligations, which makes timely filing crucial for financial planning.

Impact on Carry Forward Losses

A critical issue for taxpayers who miss the ITR filing deadline is the potential loss of the ability to carry forward certain losses, such as capital losses. Under the Income Tax Act, taxpayers who have incurred losses, such as in the sale of assets (capital losses), can carry these losses forward to offset gains in future years. This helps reduce future tax liability.

However, in order to carry forward these losses, the return must be filed on time. If you miss the deadline, you lose the opportunity to carry forward these losses. This could significantly affect your tax planning for the next assessment year, especially if you anticipate making gains that could have been offset by these carried-forward losses. As a result, your taxable income will be higher in the future, increasing your overall tax liability.

In addition to capital losses, other types of losses such as business losses may also be impacted. If you fail to file on time, you may not be able to carry forward those losses to future years, leading to a higher tax burden down the road.

Eligibility for Rebate

Missing the filing deadline could also have an adverse impact on your eligibility for certain tax rebates that reduce your overall tax liability. A common rebate available to individual taxpayers is the Section 87A rebate, which provides a reduction in the tax payable for individuals earning below a specified threshold.

This rebate is available only if the taxpayer files their return within the prescribed timeline. If you file your return after the deadline, you may forfeit this benefit. As a result, you could end up paying more taxes than necessary. Rebate eligibility under other sections, such as Section 80C (deductions for investments in specific financial instruments), may also be impacted by late filing, as certain deductions and exemptions must be claimed within the same financial year.

Conclusion

The September 15 deadline extension provides salaried employees with the opportunity to file their returns accurately and avoid last-minute rushes. By preparing well in advance, reviewing your Form 16 and TDS credits, and ensuring all eligible deductions are accounted for, you can file your tax return smoothly and without penalties. It’s important to complete these steps before the deadline to avoid missing out on valuable tax-saving opportunities and to ensure timely refund processing. If you miss the September 15 deadline, you still have the option to file a belated return by December 31, but be prepared for penalties, interest, and delays.

Frequently Asked Question (FAQs)

Q1: Can I file my ITR after the September 15 deadline?

Yes, you can still file a belated return after the September 15, 2025 deadline, but the belated return must be filed by December 31, 2025. However, you will incur penalties under Section 234F, and interest will be charged on any unpaid taxes. Filing a belated return may also result in delays in refund processing.

Q2: What is the penalty for filing ITR after the deadline?

If you file your ITR after the due date, you may be subject to a penalty of up to ₹5,000 under Section 234F for belated returns. In addition to this, interest will be levied on any unpaid taxes under Sections 234A, 234B, and 234C. Filing on time helps you avoid these penalties and ensures timely processing of your return.

Q3: How do I ensure my TDS credits are accurate?

To ensure that your TDS credits are accurate, you should cross-check the details in your Form 16 and Form 26AS. Form 26AS contains the summary of TDS credits against your PAN and should match the TDS amounts shown in your Form 16. If there are discrepancies, resolve them with your employer or the deductor before filing your return. Filing accurate TDS details prevents delays in refund processing.

Q4: What happens if I forget to claim deductions?

Forgetting to claim eligible deductions can result in a higher taxable income, which increases your tax liability. It’s crucial to review all deductions like HRA, 80C, 80D, and others before filing your return. If you miss claiming deductions, you may need to file a revised return. TaxBuddy provides assistance in ensuring you don’t miss any deductions and helps maximize your refund.

Q5: Can I file my return using the TaxBuddy app?

Yes, TaxBuddy allows you to file your ITR directly using its mobile app. It offers both self-filing and expert-assisted filing options, depending on your preference. TaxBuddy simplifies the process, guiding you step-by-step, ensuring your return is filed correctly and on time.

Q6: How long does it take to process an ITR filing with TaxBuddy?

The processing time for your ITR filing on TaxBuddy can vary based on the complexity of your tax situation. Simple filings may take a few hours, while expert-assisted filings might take a few days. TaxBuddy ensures that your return is processed efficiently and accurately, and you'll receive timely updates on the status of your filing.

Q7: Can I make changes to my filed ITR?

Yes, you can file a revised return if you realize that there were errors or missing information after your initial filing. Revised returns can be filed within the same assessment year. Ensure that any changes are made before the end of the assessment year to avoid penalties or delays in processing.

Q8: How do I track my income tax refund status?

To track the status of your refund, visit the Income Tax Department’s e-filing portal. You can check the status by entering your PAN and assessment year details. If you filed through TaxBuddy, you can track your refund status directly through the app, and TaxBuddy will assist you in case of any issues.

Q9: What if I missed filing my ITR before the deadline?

If you missed the ITR filing deadline, you can still file a belated return by December 31, 2025. However, you will face penalties and interest on any taxes due. It's important to file as soon as possible to avoid further complications and delays in processing your refund.

Q10: How can I calculate the tax payable under the new tax regime?

To calculate your tax under the new tax regime, refer to the income tax slabs for the current year. The new tax regime provides reduced tax rates without the benefit of deductions and exemptions. TaxBuddy helps you calculate your tax liability accurately, factoring in all relevant details based on the regime you choose.

Q11: Does TaxBuddy provide post-filing support if I receive a notice from the Income Tax Department?

Yes, TaxBuddy provides post-filing support if you receive a notice from the Income Tax Department. If your ITR is selected for scrutiny or if there are discrepancies in your filed return, TaxBuddy offers assistance in addressing the issue, including guidance on how to respond to notices and submit any additional documents required.

Q12: Can I file my ITR directly from TaxBuddy if I already have Form 16?

Yes, you can directly file your ITR on TaxBuddy if you already have Form 16. TaxBuddy allows you to upload your Form 16, and the system will auto-fill most of your details, making the filing process easier and faster. You can also manually input any additional information needed to ensure a complete and accurate return.