New ITR Deadline Explained: Why the Income Tax Return Filing Date Has Been Extended

The Income Tax Department has extended the due date for filing Income Tax Returns (ITR) by 46 days, moving it from July 31 to September 15, 2025. This one-time relief applies only for Assessment Year (AY) 2025–26. This article explores the reasons behind this extension and what it means for taxpayers.

ITR Filing Due Date Extended to September 15, 2025

In a significant development for taxpayers, the Central Board of Direct Taxes (CBDT) has officially extended the deadline for filing ITRs by 46 days. The new due date of September 15, 2025, applies to individuals and entities not requiring a tax audit.

The extension, announced via a circular dated May 27, 2025, was made under the authority granted by Section 119 of the Income-tax Act, 1961.

Old Due Date: July 31, 2025
New Due Date: September 15, 2025
Applicable To: Non-audit cases under AY 2025–26 (FY 2024–25)

Why Was the Deadline Extended?

The primary reason for the extension is the substantial changes introduced in ITR forms for AY 2025–26. These updates aim to increase transparency, simplify compliance, and improve the accuracy of tax reporting.

Key Changes in ITR Forms That Prompted the Extension

1. LTCG up to ₹1.25 lakh under Section 112A can now be reported in ITR-1 and ITR-4.

2. Asset and Liability threshold (Schedule AL) increased from ₹50 lakh to ₹1 crore.

3. Turnover limits for presumptive taxation raised:

   • Section 44AD (Businesses): ₹2 crore ➜ ₹3 crore

   • Section 44ADA (Professionals): ₹50 lakh ➜ ₹75 lakh

4. Mandatory disclosure of all active Indian bank accounts, excluding dormant ones.

5. Form 10BA must now be filed along with ITR to claim Section 80GG rent deduction.

6. Taxpayers opting out of the new tax regime must now file Form 10-IEA.

 System Readiness Delayed Due to Major Changes

The CBDT emphasized that these modifications required extensive system development, integration, and testing of e-filing utilities.

“In view of the extensive changes introduced in the notified Income Tax Returns (ITRs) and considering the time required for system readiness and rollout… the due date for filing returns has been extended,” said the CBDT.

In addition, TDS statements—due by May 31, 2025—will start reflecting on the Income Tax portal only by early June, further compressing the filing window without an extension.

 Who Does the Extension Apply To?

The extended due date of September 15, 2025 applies exclusively to non-audit taxpayers, which includes:

• Salaried employees

• Freelancers and consultants

• Professionals (doctors, lawyers, etc.)

• Small businesses under the presumptive tax scheme

Entities requiring a tax audit are not covered under this extension.

 Why You Should Still File Early

While the extension offers relief, taxpayers are strongly encouraged to file their returns early once the e-filing utilities are updated. Early filing helps:

• Avoid last-minute rush and errors

• Ensure faster processing of refunds

• Allow time for resolving discrepancies or documentation issues

• ITR filing due date extended 2025

• Income tax return last date AY 2025-26

• CBDT circular on ITR extension

• ITR utility delay 2025

• File income tax return online

• New tax regime Form 10-IEA

The ITR deadline extension for AY 2025–26 is a welcome move, reflecting the government’s responsiveness to practical challenges in compliance and digital rollout. However, it should not be taken as a reason to delay. Start preparing your return early to ensure a smooth and timely filing experience.