Extension of ITR filing deadline for non-audit returns in FY 2025-26; Status of audit cases unclear.
Late Extension of ITR Filing Deadline for Non-Audit Cases: A Comprehensive Look
The Central Board of Direct Taxes (CBDT) has extended the deadline for filing Income Tax Returns (ITR) for non-audit cases for the Assessment Year (AY) 2025-26. The new deadline is now September 15, 2025, an extension from the original July 31, 2025.
The extension was necessitated due to several factors, including significant delays and challenges in the issuance of revised ITR forms and utilities, delays in the availability of Tax Deduction at Source (TDS) data, and changes introduced after Budget 2024.
One of the key factors was the delayed issuance of ITR forms and utilities, specifically Forms 5, 6, and 7. The Income Tax Department did not release these forms in a timely manner, making it difficult for taxpayers to prepare and file accurate returns.
The changes to ITR forms and content also required extra time for taxpayers to understand and implement. Structural and content revisions were made to simplify compliance and enhance transparency, but these changes needed careful consideration and implementation.
Delays in receiving complete and accurate TDS statements from deductors also contributed to difficulties in preparing correct ITRs. The late availability of TDS data further complicated the filing process.
System and technical issues were another hurdle. Taxpayer representatives and chambers of commerce cited discrepancies in Form 26AS and errors in the Annual Information Statement (AIS) system, further complicating filing.
Despite the government generally sticking to original deadlines in recent years, the extension for AY 2025-26 non-audit cases was announced early, at the end of May 2025, to provide relief and avoid a last-minute rush.
The audit case deadlines remain unchanged, with the deadline for filing ITR for cases with transfer pricing reports set for November 30, 2025.
As of August 9, 2025, more than 2.84 crore ITRs have been filed, and 1.13 crore returns have been processed. The ITR filing for AY2025-26 started on May 30, 2025, which is later than usual.
It is important to note that missing the September 15 ITR filing deadline will result in late filing fees and interest. Early filing of ITR is, therefore, advised to avoid system slowdowns, detect deficient documents in time, and potentially receive refunds earlier.
The changes in ITR forms include new reporting of capital gains, new columns for tax credit claims, and additional data fields to enhance transparency. As of now, the online versions of ITR-2 and ITR-3 are available, but ITR-5, 6, 7, and their utilities are yet to be released.
[1] India Today [2] Financial Express [3] The Hindu [4] Business Standard [5] Live Mint
- The extension of the ITR filing deadline for non-audit cases in the finance market has prompted discussions in personal-finance sections of various business news outlets such as India Today, Financial Express, The Hindu, Business Standard, and Live Mint.
- As the deadline for filing Income Tax Returns (ITR) for finance businesses has been extended, financial analysts are recommending that businesses closely review their financial records and ready themselves for the updated ITR forms and content, which include new reporting of capital gains, new columns for tax credit claims, and additional data fields.
- The changes in ITR forms and content may also affect personal finance, as taxpayers should be aware of the revised forms and determine how they may impact their financial situation, particularly capital gains and tax credit claims.
