Summary: The Central Board of Direct Taxes (CBDT) has extended the Income Tax Return (ITR) filing due date for small taxpayers who do not require an audit of their accounts. The original due date of July 31, 2025, for Financial Year 2024-25 has been moved to September 15, 2025. This extension is primarily due to significant changes introduced in the ITR forms and the time needed for system development, integration, and testing of corresponding utilities. Utilities for ITR Form 1 (for salaried individuals with income up to Rs. 50 lakhs) and ITR Form 4 (for taxpayers with business income under presumptive taxation) have been released. Taxpayers can use this additional time to reconcile TDS/TCS credits with AIS/Form 26AS, carefully assess tax particulars, and ensure accurate filing, particularly given the new disclosure requirements. While this extension benefits small taxpayers, concerns exist regarding potential portal congestion in September and October, which could impact due dates for audit cases and prolong the tax cycle. Taxpayers are advised to file returns promptly once utilities are available, rather than waiting until the new deadline.
Arjuna (Fictional Character): Krishna, It was in the news that the due date of ITR filing has been extended. For whom is the due date extended and till when?
Krishna (Fictional Character): Arjuna, 31st July 2025 was the original due date for filing of ITR for small taxpayers who are not required to get their books of accounts audited under the Income Tax Act, 1961. The CBDT have introduced few changes to the existing ITR form for the FY 24-25 and thus to ensure the smooth and convenient filing of returns the ITR due date for returns to be filed on 31st July has been extended to 15th September 2025.
Arjuna (Fictional Character): Krishna, Why have the Income Tax Authorities extended the due date?
Krishna (Fictional Character): Arjuna, owing to the following reasons, the original due date was further extended to 15th September 2025:
1. Extensive Changes in Notified ITRs.
2. Time Required for System Developments, Integration and Testing Corresponding Utilities & Rollout of Income Tax Return Utilities for AY 25-26.
The extended time limit is aimed to facilitate a smooth & convenient filing experience for taxpayers by mitigating the concerns raised by stakeholders and by providing adequate time for compliance.
Arjuna (Fictional Character): Krishna, have the tax authorities released any utilities for ITR Forms of FY 24-25?
Krishna (Fictional Character): Arjuna, utilities for ITR Form 1, for Salaried Individuals with total Income upto Rs. 50 Lakhs and ITR Form 4, for taxpayers having business income and who pay tax under presumptive taxation scheme have been released by the authorities and persons who fall within the two categories can begin their return filing for the FY 2024-25.
Arjuna (Fictional Character): Krishna, How can the small taxpayers take benefit of this extended time limit?
Krishna (Fictional Character): Arjuna, the small taxpayers can benefit of extended time limit by following ways:
1.Reconciliation of TDS/TCS: The small taxpayers can use this additional time to perform timely reconciliation of their TDS/TCS Credit with their AIS/Form 26AS and can follow up with their deductors in case of non reflection of Credit.
2. Careful Assessment of Tax Particulars: The taxpayer should use the time to carefully assess the new changes and should ensure correct filing of all particulars required in the return.
3. Additional Time: The taxpayers need not worry about the time delay due to technical issues while filing of returns as they are now provided with ample amount of time for the ITR.
Arjuna (Fictional Character): Krishna, Is the extension a relief or headache for the taxpayers?
Krishna (Fictional Character): Arjuna, the extension of the due date is seen as a relief by the small taxpayers however, the CBDT have not intimated any update on the due date for persons required to get their books of account audited under Income Tax Act. The existing due date for filing of Audit Report is 30th September and due date for filing ITR of Audit Cases is 31st October. However the extension of due date for small taxpayers to 15th September could result in higher volume of activity on the portal in the month of September and October and thus this could lead to further extension of Due Dates of Audit Cases, which extends the Tax Cycle and headache for the taxpayers.
Arjuna (Fictional Character): Krishna, What shall the taxpayers learn from this?
Krishna (Fictional Character): Arjuna, The extended time limit is due to new changes in ITR forms and time required for aligning the existing systems to these changes. The taxpayers shall take note of these new changes in the ITR forms, which would require additional disclosures of Information by him, and shall observe utmost care in filing the returns. Further he shall not wait till the very last month & shall proceed to file his return, as and when the utilities are rolled out.
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