The Central Board of Direct Taxes has given taxpayers without audit requirements more breathing room this year by extending the income tax return filing deadline from July 31 to September 15. This change applies to individuals and businesses whose accounts do not need to be audited. The extension was announced unusually early at the end of May, which is a departure from the usual practice of making such announcements closer to the original deadline.
For taxpayers in audit cases, there has been no change in the schedule. Their deadline remains October 31, 2025. For cases involving transfer pricing reports, the final date remains November 30, 2025. Those who miss the September deadline for non-audit returns still have the option to file a belated return until December 31, 2025, though this will come with late fees and interest. The late fee is five thousand rupees for most taxpayers and one thousand rupees for those with total income below five lakh rupees. Filing after December will only be possible under belated or updated return provisions, and refunds could also be delayed.
This year’s early extension is tied to a series of procedural delays and updates. Filing for this assessment year began later than usual, starting only on May 30 instead of April. The delay was due to significant changes made in the income tax return forms after amendments in Budget 2024.
The new forms included additional reporting for capital gains, new sections for claiming tax credits, and extra data fields to improve transparency. While the forms for ITR-1 to ITR-4 were released between April and May, the utilities required for filing particularly for ITR-2 and ITR-3 became fully available only in June and July. Forms for ITR-5, 6, and 7 are still pending release.
Adding to the delay was the late update of TDS and tax credit data in Form 26AS, which is usually available by the end of May but was updated only in June this year. Without these updates, many taxpayers and professionals were unable to prepare accurate returns in time for the original deadline.
As of August 9, more than 2.84 crore returns have already been filed, with about 1.13 crore processed. However, tax experts warn against waiting until the last minute. Filing early helps avoid the system slowdowns that often occur near the deadline, provides time to correct any errors or missing information, and increases the chances of receiving refunds sooner.
Even though there is more time this year, the smartest approach is to start preparing your documents, verify your TDS data, and complete the filing process well before the deadline. This avoids the stress and potential complications of last-minute filing and ensures full compliance without penalties or delays.
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