27-05-2025
Explained: Why CBDT extended deadline to file Income Tax returns to Sept 15
NEW DELHI: The government on Tuesday extended the deadline for filing income tax returns (ITRs) by one-and-a-half months to September 15, arising from changes in the forms, brought about by a significant change in the Income Tax Act itself.
Government officials cited technical reasons for the extension, citing technical reasons, including necessary system development to reflect simplified compliances. The announcement came well ahead of the start of the annual income-tax return filing exercise.
'To facilitate a smooth and convenient filing experience for taxpayers, it has been decided that the due date for filing of ITRs, originally due on 31st July, 2025, is extended to 15th September, 2025,' a spokesperson of the Central Board of Direct Taxes (CBDT) said in a statement. CBDT is an arm of the Union finance ministry.
Tax experts and chartered accountants (CAs) expressed surprise that CBDT extended the deadline without mentioning the date by which the utilities would be made live for filing ITRs. A finance ministry official, who did not wish to be named, said this could happen in the first week of June and that an announcement would follow.
CBDT has already notified extensively modified income tax returns forms for AY (assessment year) 2025-26 in the last two months. The income tax law prescribes seven different forms (or ITRs) for different classes of taxpayers, such as individuals or companies. Returns filed for an assessment year reflect transaction details of the preceding financial year (FY).
'The revamped forms have necessitated additional time for system integration, utility testing, and backend readiness to ensure a more accurate and seamless filing experience,' CA Tarun Kumar, Direct tax head at Coherent Advisors, said, explaining what may have prompted the extension.
Giving reasons for extending the timeline, the CBDT statement said: 'The notified ITRs for AY 2025-26 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.'
The extension wasn't unexpected.
'Unlike the previous couple of years, when ITR forms were released well in advance, typically before March, the ITR forms for the assessment year 2025-26 have been released with a delay of more than a month… more than 39 days .... This created anticipation that the department would extend the due date to file income tax returns,' said Naveen Wadhwa, vice president at consultancy firm Taxmann.
According to experts, the government has pre-empted litigations related to time and extended the deadline suo moto. 'This apprehension is based on instructions given in earlier years by the Gujarat and Punjab & Haryana High Courts to the CBDT to extend the due date for filing income-tax returns, in order to alleviate, to a certain extent, the hardships caused due to the delay in providing ITR filing utilities on time,' Wadhwa added.
India's net direct tax revenue (after refunds) in the financial year 2024-25 saw 13.57% year-on-year growth at over ₹22.26 lakh crore. Gross direct tax revenue, however, saw a robust 15.6% jump to ₹27,02,974 crore in FY25, compared to ₹23,38,421 crore collected in the previous fiscal year of 2023-24.
