Income Tax Return (ITR) Filing Deadline Extended: The Central Board of Direct Taxes (CBDT), via its press release dated 27th May 2025, has extended the due date for filing ITR for Assessment Year 2025–26 from 31st July 2025 to 15th September 2025.The extension is attributed to system development and integration necessitated by:
- Structural changes and content revision in the recently notified ITR forms, aimed at simplifying taxpayer compliance and enhancing transparency and enabling accurate reporting, and
- Availability of TDS credits to start reflecting early June, thereby limiting the effective window for tax filing.
This initiative is aligned with the government’s broader effort to modernize and digitize the tax administration system. Significant investments are being made in technology and automation to improve the overall taxpayer experience.A Glimpse into the Future of Tax FilingIt raises the expectation — a future where the ITR forms are fully pre-filled, requiring taxpayers to simply review, amend if needed, and file with a click. This extension is a welcome move in that direction, bringing hope for simpler, faster, and more accurate return filing processes.Do Pay Taxes DueDespite the extended filing due date, taxpayers are strongly advised to:
- Compile their income details early,
- Calculate their tax liabilities, and
- Discharge any balance tax liability promptly.
This is crucial to avoid penal interest under Section 234B of the Income Tax Act, which continues to accrue until the month in which the tax is paid.Section 234B Overview
- Applicable when advance tax provisions apply.
- If the net tax liability (after TDS/TCS) exceeds ₹10,000 and taxes paid before the end of the financial year are less than 90% of the total tax due, interest under Section 234B is levied.
- Senior citizens without income from business or profession are exempt from advance tax provisions.
A formal notification for the extension is expected to be issued shortly. (By Kuldip Kumar, Partner at Mainstay Tax Advisors)
