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Time of India
27-05-2025
- Business
- Time of India
Deadline to file ITR extended to September 15 amid systems tweaks
Photo/Agencies NEW DELHI: The income tax department has extended the deadline for filing of tax returns by individuals from July 31 to Sept 15 in the wake of several amendments to the law, which have necessitated revisions in the notified ITRs for this assessment year, requiring the authorities to rework the technology platform, among other things. "The notified ITRs for Assessment Year 2025-26 (FY2024-25) have undergone structural and content revisions aimed at simplifying compliance, enhancing transparency, and enabling accurate reporting. These changes have necessitated additional time for system development, integration, and testing of the corresponding utilities. Furthermore, credits arising from TDS statements, due for filing by May 31, 2025, are expected to begin reflecting in early June, limiting the effective window for returns filing in the absence of such extension," the Central Board of Direct Taxes (CBDT) said in a statement. For the last few years, the tax department has been sticking to the July 31 deadline meant for individuals who do not need to get audits done. The deadline covers the bulk of I-T returns filed during the year. Whenever the deadline has been extended in the past, it has happened quite late in the day. But this time the I-T department has opted to inform taxpayers early. "Given the requirements of these new ITR forms, the e-filing utility (both online and offline) needs to be updated by govt. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Trading CFD dengan Teknologi dan Kecepatan Lebih Baik IC Markets Mendaftar Undo Therefore, it is a very welcome move to extend the ITR filing deadline..., allowing taxpayers the time required to comply with these enhanced reporting requirements and legislative changes," said Sonu Iyer, partner and national leader for People Advisory Services-Tax at consulting firm EY India. "Given the complexity and increased reporting requirements in the revised ITR forms, including more granular disclosures of capital gains, foreign income, and asset ownership, the extension offers much-needed relief to taxpayers... taxpayers are advised to utilise this extended window to compile their financial data, reconcile necessary information, thereby minimising the risk of filing errors or omissions," said Sandeep Sehgal, tax partner at consulting firm AKM Global. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
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Business Standard
27-05-2025
- Business
- Business Standard
CBDT extends ITR filing deadline to September 15 amid major changes
In a relief to taxpayers, the Central Board of Direct Taxes (CBDT) has extended the last date for filing the income-tax return (ITR) for assessment year (AY) 2025-26 from July 31 to September 15. 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.
Mint
07-05-2025
- Business
- Mint
Details on rent, home loan, TDS: ITR forms seek more disclosures this year
NEW DELHI : This year, taxpayers will have to make more disclosures even as compliance has been eased in the new Income Tax Return (ITR) forms. From Sahaj-1 to the more complex ITR-2 and ITR-3, all the forms released by the Central Board of Direct Taxes (CBDT) for the assessment year 2025-26 have seen major changes. They require more disclosures on tax-saving investments, house rent allowance (HRA), and tax deducted at source (TDS) on incomes other than salary. At the same time, they have eased compliance on assets and liabilities reporting, and allow those with long-term capital gains (LTCG) of up to ₹ 1.25 lakh from stocks and equity mutual funds to opt for the simpler ITR-1. 'Major changes in the ITR forms have been made to incorporate various aspects of reporting and disclosures arising from the amendments made in the Finance (No. 2) Act, 2024, enhancing the scope of Form ITR-1/ ITR-4," said Poorva Prakash, partner, Deloitte India. The due date to file the ITR is 31 July. However, taxpayers should try to file their returns in advance so that they get enough time to assess the ITR form applicable and file an error-free return, given the changes introduced this year. Mint gives a breakdown of the major changes applicable to the majority of taxpayers Applicable to : ITR-1, ITR-4 An individual who has LTCG up to ₹ 1.25 lakh from equity funds and stocks under Section 112A and does not have any brought-forward losses from the previous year or loss to be carried forward to subsequent years is now eligible to file ITR-1 or ITR-4. Earlier, LTCG under Section 112A, along with other capital gains, had to be reported in the complex ITR-2/ITR-3, which requires detailed disclosures. In ITR-1 and ITR-4, only the total sales consideration, the total cost of acquisition, and LTCG need to be filled in the ITR. The limit of ₹ 1.25 lakh will apply after setting off losses made in the same year, said Sonu Iyer, partner and national leader, people advisory services, EY India. 'To calculate net gains, only losses set off under Section 112A is to be considered, and no other loss. Say, if the taxpayer has LTCG of ₹ 2 lakh and LTCL of ₹ 1 lakh, both under Section 112A, he may file ITR-1 or 4, subject to other conditions being fulfilled." This condition applies only if a taxpayer solely has LTCG under ₹ 1.25 lakh from assets under Section 112A–listed stocks and equity mutual funds. 'Where there is LTCG from other assets, short-term gains, capital losses or aggregate LTCG exceeds ₹ 1.25 lakh, taxpayers cannot opt for ITR-1 and will need to file the return in ITR-2 or ITR-3 form," said Prakash. Applicable to : ITR-1, ITR-2, ITR-3, ITR-4 ITR forms will now have new fields to disclose details related to deductions claimed on various tax-saving investments and expenditures (Chapter VI-A Section 80C, 80D, 80CCD, 80E, etc ). Most of these deductions are available to taxpayers in the old tax regime. 'The ITR utilities may now include drop-down menus for selecting the specific clauses along with the relevant details–for e.g. contribution to PPF, contribution towards life insurance premium, investments towards tax saving fixed deposits and mutual funds, age, relationship, disability status, etc. under which deductions are being claimed under Chapter VI-A," said Sanjoli Maheshwari , executive director, Nangia Andersen India. Those claiming deduction for interest on housing or education loan will also need to provide more details in their ITR. 'Detailed disclosure with regard to various exemptions, such as house rent allowance, leave travel allowance and other allowances claimed under Section10, will also need to be given," Maheshwari said. 'It would be important for taxpayers to maintain robust documentation and correctly disclose the same as asked for in the ITR forms." Applicable to: ITR-1, ITR-2 The Finance Act 2024 brought about several changes in tax rates and indexation rules, which came into force from 23 July 2024. Earlier, the LTCG tax rate on equity was 10% and other assets were taxed at 20%. This rate was changed to a uniform 12.5% for all assets. For real estate properties acquired before 23 July 2024, taxpayers have been given the option to choose between 12.5% without indexation or 20% with indexation. The ITR forms have been changed to report capital gains made before and after 23 July 2024. Iyer said due to the split, calculating and reporting capital gains may be more complex, not just for immovable property but for any other capital asset. 'The rate of tax, period of holding and indexation benefit, will be required to be calculated separately for each capital asset before 23 July 2024 and on or after 23 July 2024." The split will also apply to unutilised amounts withdrawn from the capital gain account scheme (CGAS), where taxpayers park capital gains they intend to reinvest in real estate property to benefit under Section 54 and Section 54F. 'In this regard, a separate column has been provided in the new ITR form to disclose whether the withdrawal was before or after July 23, 2024," said Maheshwari. The department has not clarified which tax rate will be applicable on withdrawals after 23 July 2024, but the property was transferred before the said date. 'The e-filing utility or the instructions to ITR may clarify and confirm the rate of tax applicable in such cases," Iyer said. Applicable to: ITR-1, ITR-2, ITR-3 and ITR-4 The scope of TDS Section in the ITR forms has been widened to include specific columns where the different incomes on which tax at source has been deducted will be reported. 'TDS is deducted under various sections like Salary (Section 192), Dividends (194), Interest (Section 194A), etc. In Schedule TDS, there are two separate schedules: (a) Details of TDS from Salary and (b) Details of TDS on Income. The field TDS Section code has been added in the Details of TDS on Income," said Iyer. The TDS Section code to be reported in Schedule TDS may be pre-filled. So, the taxpayers will need to carefully review and map the corresponding income under the respective heads of income with the TDS certificates and Form 26AS. Maheshwari said this change will aid in improving the accuracy of TDS claims made by the taxpayers in the income tax returns. 'Taxpayers may have to reconcile the same as reflected in Form 26AS/AIS (Annual Information Statement), which will help at the time of processing the ITR." Applicable to: ITR-2, ITR-3 This year onwards, the income threshold for individuals who have to report details of their assets and liabilities in Schedule AL has been increased from ₹ 50 lakh to ₹ 1 crore. 'The details include reporting of immovable property, financial assets like bank accounts (including deposits), shares and securities, insurance policies, jewellery, bullion, archaeological collections, drawings, paintings, sculpture or any work of art, vehicles, yachts, boats and aircrafts, loans and advances given, cash in hand and any loans (liabilities) in relation to the above assets," said Iyer.
