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CBDT extends ITR filing deadline to September 15 amid major changes
The decision follows revisions to the structure and content of the notified ITR forms, which have provisions and several new reporting requirements introduced by the Finance Act, 2024.
'In view of the extensive changes introduced in the notified ITRs and considering the time required for system readiness and rollout of Income Tax Return (ITR) utilities for Assessment Year (AY) 2025-26, the Central Board of Direct Taxes (CBDT) has decided to extend the due date for filing returns,' the CBDT said.
In a statement to the media on Monday, the CBDT acknowledged that credits from statements on tax deducted at source (TDS), due for filing by May 31, would begin reflecting in early June, limiting the window for return filing without an extension.
ITR-1 now includes an option to report long-term capital gains up to ~1.25 lakh.
ITRs 2, 3, 5, and 6 require more detailed disclosures under the 'Capital Gains Schedule' with reporting required for transactions before and after July 23, 2024, owing to different tax implications following the changes made last year in the tax law.
'This extension is expected to mitigate the concerns raised by stakeholders and provide adequate time for compliance, thereby ensuring the integrity and accuracy of the return filing process,' the CBDT said.
Tax experts welcomed the move, calling it a step to ease taxpayer compliance amid evolving requirements.
'The ITR forms notified for FY2024-25 incorporate enhanced reporting, such as splitting capital gains before and after July 23, 2024, following rationalisation measures in the Finance Act,' said Sonu Iyer, partner and national leader, People Advisory Services (Tax), EY India. 'This provides taxpayers adequate time to comply,' Iyer added.
Vivek Jalan, partner, Tax Connect Advisory Services LLP, said: 'Every year, TDS/TCS (tax collected at source) credits are reflected only by mid-June, leaving taxpayers just about six weeks for compliance. Extending the deadline to September 15 alleviates this hardship.'
Jalan urged the government to consider a permanent extension of the due date to August 31 under the proposed Income Tax Bill 2025, which is expected to come into effect from April 1, 2026.
While the extension offers much-needed relief to salaried individuals and small businesses not subject to audit, experts said the press release was silent on whether the due date for tax payment had also been extended and whether interest under Section 234A would apply.
'In the absence of clarification, there is a possibility that interest under Section 234A may apply if there is a tax liability and the return is filed after July 31 without full payment. To avoid this, taxpayers should pay any self-assessment tax by July 31,' said Gaurav Makhijani, associate partner, Rödl & Partner. Timely payment will avoid interest under Section 234B for shortfalls in advance tax, he said.
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