The Central Board of Direct Taxes (CBDT) has officially extended the due date for filing Income Tax Returns (ITRs) for the financial year 2024–25 (assessment year 2025–26). Taxpayers who were originally required to file their returns by July 31, 2025, now have until September 15, 2025, to do so. This extension comes in response to significant structural changes in the notified ITR forms, the need for updates in the e-filing system, and the delayed availability of TDS credits, which are crucial for accurate and error-free return filing.

According to the Income Tax Department, the revised ITR forms aim to simplify compliance, improve transparency, and ensure accurate reporting. These changes are based on amendments introduced by the Finance Act 2024, which include enhanced reporting requirements for deductions, mandatory disclosure of TDS section codes, and the need to report capital gains separately based on whether they occurred before or after July 23, 2024. These changes require updates to both online and offline e-filing utilities, and the extension provides the necessary time for taxpayers to adapt.

Tax experts have widely welcomed the move. Many noted that as of May 27, 2025, the income tax portal had not yet enabled ITR filing, causing concern among taxpayers and professionals alike. There were also ongoing issues in accessing accurate AIS and TDS data, both essential for filing returns without mismatches. With the extended deadline, taxpayers will have additional time to reconcile data from AIS and Form 26AS, ensuring accurate filings.

The Income Tax Department has already notified all seven ITR forms for AY 2025–26. Notable updates include allowing salaried individuals to report long-term capital gains (LTCG) up to ₹1.25 lakh in ITR-1 and ITR-4, new bifurcation requirements for capital gains in ITR-2, and an increased reporting threshold for assets in ITR-3. The updated forms are designed to reflect policy changes from the Union Budget and to reduce compliance burdens for certain categories of taxpayers.

A formal notification from the CBDT confirming the revised deadline is expected soon. Meanwhile, taxpayers are advised to begin preparing their returns in line with the new reporting requirements and stay updated with developments from the Income Tax Department.