The Central Board of Direct Taxes (CBDT) has given Indian taxpayers extra time to file their Income Tax Returns (ITR) for the Assessment Year (AY) 2025-26. The new deadline is September 15 2025 instead of the usual July 31 2025. This extension is for individuals Hindu Undivided Families (HUFs) and small businesses that don’t need an audit. It helps people deal with new ITR forms, website updates and delays in Tax Deducted at Source (TDS) details.
Why Did CBDT Extend the ITR Deadline?
The CBDT extended the ITR filing deadline to September 15 2025 to make things easier for taxpayers. Here are the main reasons:
- New ITR Forms: The CBDT changed the ITR forms for AY 2025-26 to make tax filing clearer and simpler. For example salaried people can now report long-term capital gains (LTCG) up to ₹1.25 lakh in ITR-1 and ITR-4 which wasn’t allowed before. ITR-2 now splits capital gains into different categories and ITR-3 has a higher limit for reporting assets. These changes need time to understand.
- Website Updates: The Income Tax Department is upgrading its e-filing website to support these new forms. As of May 27 2025 the website tools weren’t fully ready. The extension gives time to fix this.
- Delay in TDS Details: TDS details which show taxes deducted from your income will only be available in Form 26AS by early June 2025. Taxpayers need this to file accurate returns so the extra time helps.
- Fewer Mistakes: Filing taxes at the last minute can lead to errors. The extended deadline gives people more time to file correctly and avoid penalties.
This extension shows the government wants to help Indian taxpayers file their returns without stress.
Who Gets the Benefit of the Extended Deadline?
The new deadline of September 15 2025 helps the following groups:
- Salaried People: Employees who get Form 16 from their employers can wait until mid-June for accurate TDS details before filing.
- HUFs: Hindu Undivided Families with income up to ₹50 lakh and no audit can use the extra time to organize their finances.
- Small Businesses and Professionals: Businesses or professionals with income below the audit limit (like turnover under ₹1 crore) get more time to file.
- Investors: People earning from investments like capital gains can use the updated ITR-1 and ITR-4 forms which make reporting easier.
However businesses or professionals needing an audit (like those with turnover above ₹1 crore or receipts above ₹50 lakh) don’t get this extension. Their deadline is usually October 31.
What’s New in ITR Forms for AY 2025-26?
The CBDT released all seven ITR forms (ITR-1 to ITR-7) and a new ITR-U form between April 29 and May 19 2025. These forms include changes from the Union Budget 2024 to make tax filing easier. Key updates are:
- ITR-1 and ITR-4: These now allow reporting of LTCG up to ₹1.25 lakh from stocks or mutual funds helping salaried people and small taxpayers.
- ITR-2: It now breaks down capital gains into separate categories for clarity.
- ITR-3: The limit for reporting assets has increased so fewer people need to report.
- ITR-U: A new form to correct mistakes or file returns for up to 48 months but with higher taxes (60% for the third year and more for the fourth).
These forms were released late (39 days after FY 2024-25 ended) which delayed e-filing and led to the extension.
How Can Indian Taxpayers Use This Extension?
To make the most of the extended deadline follow these simple steps:
- Check Form 26AS: After June 15 2025 check your TDS details in Form 26AS to make sure all deductions are correct.
- Get Form 16: Salaried people should collect Form 16 from their employer by mid-June to match income and TDS details.
- Pick the Right ITR Form: Choose the correct form based on your income. For example ITR-1 is for salaried people with income up to ₹50 lakh while ITR-2 is for those with capital gains.
- File Early: The tax website gets slow in September due to heavy traffic. File in July or August to avoid issues.
- Ask a CA for Help: If you have complex income like from investments or a business a chartered accountant can guide you.
- Avoid Penalties: File by September 15 2025 to avoid a penalty of up to ₹5000 for late filing.
Why Should You File Early?
Even with the extra time waiting until September can cause problems. Filing early has these benefits:
- Fewer Errors: You’ll have time to check documents like Form 16 Form 26AS and bank statements.
- Less Stress: Avoid the rush and website issues near the deadline.
- Faster Refunds: If you’re eligible for a refund (like from deductions under Section 80C or 80D) early filing means quicker processing.
What Does This Mean for Indian Taxpayers?
The extension to September 15 2025 is a big help for Indian taxpayers. It gives more time to understand new forms and wait for TDS details and file accurately. In the past taxpayers faced issues when forms were released late even taking the matter to court. This extension shows the CBDT is listening to these concerns and wants to make tax filing easier. Keep an eye on the Income Tax Department’s website or official news for the final announcement.
Conclusion
The CBDT decision to extend the ITR filing deadline to September 15 2025 for AY 2025-26 is great news for Indian taxpayers. It gives extra time to deal with new ITR forms, website upgrades and TDS delays. By planning ahead, checking your documents and filing early you can make the process smooth and stress-free. Stay updated through the Income Tax Department’s official website and use this time wisely to file your taxes correctly.
Frequently Asked Questions
1. Who can use the new ITR filing deadline of September 15 2025?
This deadline is for individuals HUFs and small businesses with income up to ₹50 lakh that don’t need an audit. Businesses or professionals needing an audit (like turnover above ₹1 crore) don’t get this extension.
2. Why did the CBDT extend the ITR deadline this year?
The extension is due to new ITR forms delays in the tax website’s tools and TDS details being available only by early June giving taxpayers more time to file correctly.
I am a digital marketing executive as well as content writer in the income tax and credit cards category. My goal is to provide simple, interesting and reliable information to readers through my articles so that they always stay updated with the world of income tax and credit cards.
