ITR deadline extension: Why it happened and what you need to do now
Here's a relief for taxpayers - the Central Board of Direct Taxes (CBDT) has extended the last date for filing income tax returns (ITRs) for the assessment year 2025–26. The earlier deadline of July 31, 2025 has now been pushed to September 15, 2025.WHY DID THE CBDT EXTEND THE ITR DEADLINE?The main reason for this extension is the recent changes in the ITR forms. These forms have been updated with new layouts and extra details to make the process more transparent and accurate for taxpayers. But with these changes, the income tax department also needs more time to update its systems and make sure everything works smoothly.advertisementAccording to CA (Dr) Suresh Surana, 'The Central Board of Direct Taxes (CBDT) has vide Press release dated May 27, 2025 extended the due date for filing Income Tax Returns (ITRs) for Assessment Year 2025-26 from July 31, 2025 to September 15, 2025. This decision has been taken in view of significant structural and content changes in the ITR forms, which require additional time for system development and utility integration.'
Further, Dr Surana explained that the TDS (Tax Deducted at Source) credits, which are important while filing your ITR, will only start appearing from early June. This left taxpayers with very little time to file returns before the earlier July-end deadline.He said 'With TDS credits expected to reflect only in early June, the effective return filing window was limited. The extension aims to ensure a smooth and accurate filing process while addressing stakeholder concerns. It is expected that a formal notification would follow.'A STEP TOWARDS EASIER FILINGadvertisementThis move also fits into the government's long-term plan to modernise the income tax system. With new tech upgrades, automated tools, and smarter systems, filing taxes is expected to become quicker and easier for everyone.WHAT SHOULD YOU DO NOW?Even though the deadline to file your ITR has been extended to September 15, 2025, it's still wise to get started early. Waiting till the last minute often leads to unnecessary stress and errors.Begin by gathering all your income details. This includes your salary slips, interest from savings and fixed deposits, capital gains from investments, rental income, or any freelance or side income.Next, calculate your total tax liability for the year and check how much tax you still owe. It's important to pay any remaining tax without delay, as the payment deadline hasn't changed. Delaying payment can lead to interest charges under Section 234B of the Income Tax Act.You can also update your bank account details, verify TDS credits once they start appearing, and check for any pre-filled information available on the income tax portal. Lastly, keep all your documents neatly organised so you're ready to file the moment the system is fully updated.
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Time of India
2 hours ago
- Time of India
ITR filing FY 2024-25: Taxpayers take note! These 7 changes in new ITR forms excel utilities are important
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Business Standard
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India Today
5 hours ago
- India Today
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He said, 'Freelancers should review their bank statements for the entire financial year to track all income credits, particularly those from professional services. Go through them carefully and mark income from freelance work.'Surana added that if your annual gross receipts exceed Rs 25 lakh, maintaining books of accounts is mandatory under the Income Tax Act. Even otherwise, keeping a detailed ledger is a smart move, especially if you haven't opted for presumptive taxation under Section should also collect Form 16 if clients have deducted TDS. 'Cross-check the TDS entries with your Form 26AS and AIS (Annual Information Statement) to ensure proper credit,' he a GST registration? Your GST returns will act as proof of earnings—ensure these numbers match with your you work with overseas clients, keep clear records of foreign income, including bank advice slips and currency conversion details. 'Retaining bank advice slips and forex conversion details will help substantiate foreign receipts in case of queries,' Surana to claim deductions under Sections 80C or 80D for LIC premiums, PPF deposits, or health insurance? Keep receipts and payment proofs if your total tax liability exceeds Rs 10,000, advance tax kicks in. 'Save all payment challans and check that they reflect in your 26AS,' Surana noted. This can help you avoid unexpected interest under Sections 234B and ITR FORM SHOULD YOU USE?As per Surana, most freelancers fall under the 'Profits and Gains from Business or Profession' income said that ITR-3 is ideal for freelancers offering services like consultancy, content writing, tech support, design or writing, if not using presumptive taxation. 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Personal expenses mixed with professional ones will not be accepted,' Surana cautioned.'However, if a freelancer opts for the presumptive taxation scheme under Section 44ADA, 50% of gross receipts or, as the case may be, a higher sum as claimed by the assessee are treated as deemed income; separate deduction of expenses is not permitted, as all eligible expenses are deemed to be accounted for within the presumptive income,' he FREELANCERS NEED TO PAY ADVANCE TAX?Yes, advance tax is compulsory for freelancers whose total tax due for the year, after considering TDS and credits, is Rs 10,000 or more, the tax expert not using the presumptive taxation scheme under Section 44ADA must follow the standard schedule, 15% by 15th June, 45% by September, 75% by December, and the full amount by March, said Surana.'Missing or underpaying advance tax invites interest under Sections 234B and 234C,' warned Surana. The best approach? Estimate your yearly income early and pay timely TAX ERRORS: WHAT TO WATCH FOR AND AVOIDEven experienced freelancers often slip up while filing ITR. Surana pointed out that not declaring all income, especially from overseas clients or through multiple platforms, is a major mistake. Many also fail to keep proper invoices, receipts, and expense records, which are vital for accurate tax calculations and claiming skipping advance tax payments often leads to interest charges. Some claim personal expenses as business costs, risking disallowance during assessments. Using the wrong ITR form or misclassifying professional income is another frequent mistake.'To avoid these issues, freelancers should maintain clear financial records and segregate business and personal expenses in case of any potential litigation,' said other words, freelancing offers flexibility and creative freedom, but when it comes to taxes, structure and accuracy are essential. With proper documentation, early planning, and a solid understanding of tax rules, freelancers can confidently file their ITR and stay on the right side of the Watch
