synopsis

CBDT has extended the ITR filing deadline for AY 2025–26 from July 31 to September 15, 2025, due to ITR form updates, system improvements, and TDS credit issues. Formal notification is awaited.

In a welcome move for taxpayers, the Central Board of Direct Taxes (CBDT) has extended the deadline to file Income Tax Returns (ITRs) for the assessment year 2025-26. The original deadline of July 31, 2025, has now been pushed to September 15, 2025.

 

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The Income Tax Department announced the extension via its official X handle.

“CBDT has decided to extend the due date of filing of ITRs, which are due for filing by 31st July 2025, to 15th September 2025. This extension will provide more time due to significant revisions in ITR forms, system development needs, and TDS credit reflections. This ensures a smoother and more accurate filing experience for everyone,” the department posted on X.

The reason behind extended due date for filing Income Tax Returns (ITRs) for the Assessment Year 2025–26 is the major structural and content-related changes introduced in the newly notified ITR forms.

According to CBDT, these changes aim to make the return filing process simpler, improve transparency, and help taxpayers report their income and details more accurately. However, these updates have also required additional time for updating systems, integrating changes, and thoroughly testing the ITR utility software.

“In view of the extensive changes introduced in the notified ITRs and considering the time required for system readiness and rollout of the utilities, the due date for filing returns for AY 2025-26 has been extended,” the board stated.

The move is expected to ease the pressure on individual taxpayers and chartered accountants alike, who had raised concerns about the readiness of the updated tax filing infrastructure and the visibility of TDS credits on the portal.

Earlier this year, on February 13, Union Finance Minister Nirmala Sitharaman introduced a bill in the Lok Sabha proposing to replace the current Income Tax Act of 1961. The bill aims to bring significant changes affecting various categories of taxpayers, including individuals, businesses, and charitable institutions.

The proposed law is part of a larger plan announced in the July 2024 Budget, where the government committed to reviewing and overhauling the old Income Tax Act. The goal is to make the law shorter, easier to understand, and to reduce tax disputes and lengthy legal battles.

As part of the reform process, the government also invited feedback from stakeholders to improve the new bill further. Once passed, the new law is expected to modernise India’s tax system and align it with current economic realities.

Taxpayers are advised to stay updated with the new timelines and prepare accordingly as the government continues to work on making the tax filing process smoother and more efficient.
-With ANI inputs