Income Tax Return Deadline Extended to September 15 for Non-Audited Taxpayers: CBDT Cites Revised ITR Forms
New Delhi — In a major relief for taxpayers, the Central Board of Direct Taxes (CBDT) on Tuesday extended the income tax return (ITR) filing deadline for the assessment year 2025-26 to September 15, 2025 for individuals and entities not required to get their accounts audited. The earlier deadline was July 31.
The CBDT, the policy-making arm of the Union Finance Ministry, said in an official statement that the deadline was extended due to the significant revisions in ITR forms, which require additional time for the tax systems and filing software to be updated.
Why the Deadline Was Extended
While the revised ITR forms have already been notified, the corresponding software utilities are still under development and have not been made available for filing as of now. According to experts, these digital utilities are usually released in early April each year, allowing ample time for users to become familiar with any changes. However, this year’s updates are more extensive, delaying the rollout.
“These changes are intended to boost transparency and simplify compliance, but they also mean more detailed disclosures from taxpayers,” said a senior CBDT official. “The extension offers a smoother compliance experience.”
What’s New in ITR Forms for AY 2025–26
The ITR forms for FY 2024-25 (AY 2025-26) have been substantially revised to align with the Finance Act 2024. Key changes include:
- More granular disclosures on tax-saving investments, house rent allowance (HRA), and TDS on non-salary incomes.
- Simplified asset and liability reporting requirements.
- A new provision allowing taxpayers with capital gains up to ₹1.25 lakh from equities or mutual funds to file using ITR-1, the simplest form.
Expert Opinions: Welcome Move for Taxpayers
Tax professionals and financial consultants have broadly welcomed the extension, citing the added complexity and reporting burdens in the updated forms.
“Given the increased compliance obligations, this extension is much-needed,” said Sandeep Sehgal, Partner-Tax at AKM Global. “It provides taxpayers the opportunity to correctly interpret the changes and file accurately.”
Sonu Iyer, Partner at EY India, echoed the sentiment, stating, “The revised forms incorporate several budgetary amendments and enhanced reporting, making early preparation difficult. The extension will help ease the transition.”
Budget 2025-26: Major Relief for Middle-Class Taxpayers
This year’s Union Budget introduced several taxpayer-friendly reforms, particularly for those under the new tax regime. Highlights include:
- No income tax up to ₹12 lakh (average ₹1 lakh/month) under the new regime, excluding capital gains.
- For salaried taxpayers, the exemption extends to ₹12.75 lakh due to a standard deduction of ₹75,000.
- Rationalization of TDS: The number of tax deduction rates and thresholds has been streamlined, and limits raised for greater clarity and consistency.
These reforms aim to widen the tax base, improve compliance, and enhance digital transparency through better data matching and simplified processes.
Tax Collections Hit ₹22.26 Trillion in FY25
Despite the delays in software rollout, the Income Tax Department reported robust performance for the fiscal year ended March 2025. Net direct tax collections stood at ₹22.26 trillion, registering a 13.57% annual growth, underscoring a resilient compliance ecosystem and increased digital adoption.
The CBDT’s decision to extend the ITR deadline reflects both the evolving nature of India’s tax compliance framework and the government's commitment to making tax filing easier and more transparent. As the filing utilities are rolled out in the coming weeks, taxpayers are advised to review the new requirements early and seek professional advice if needed to ensure error-free submissions.