Taxpayers Rejoice! Income Tax Department Prolongs ITR Submission Deadline for Fiscal Year 2024-25; CBDT Justifies Extension Due to Modifications in Forms
Extended ITR Filing Deadline for FY 2024-25: The Income Tax Department announced an extension of the deadline for filing income tax returns for the financial year 2024-25 (Assessment Year 2025-26) from July 31 to September 15. The Central Board of Direct Taxes (CBDT) stated that this extension aims to give taxpayers sufficient time to comply with the revised filing requirements, ensuring accurate and error-free submissions.
The CBDT made this decision considering the extensive changes introduced in the notified ITRs and the time required for system readiness and rollout of Income Tax Return (ITR) utilities for the Assessment Year 2025-26. Notified ITRs for AY 2025-26 have undergone structural and content revisions designed to simplify compliance, increase transparency, and enable more accurate reporting. These changes have necessitated additional time for system development, integration, and testing of the corresponding utilities.
CBDT also stated that credits arising from TDS statements, due for filing by May 31, are expected to begin reflecting in early June, limiting the effective window for return filing in the absence of such extension. As a result, the due date for filing of ITRs, originally due on July 31, has been extended to September 15. A formal notification to this effect will be issued separately.
The CBDT has already notified the income tax return forms ITR-1 and ITR-4 for the financial year 2024-25 and the assessment year 2025-26 on April 30. The returns for incomes earned during the financial year from April 1, 2024, to March 31, 2025, need to be filed using the new forms.
A significant change in the ITR forms this year is that ITR-1 (SAHAJ) can now be filed for notifying long-term capital gains (LTCG) under section 112A. This is subject to the condition that the LTCG is not more than Rs 1.25 lakh, and the income tax assessee has no loss to carry forward or set off under the capital gains head. Previously, ITR 1 did not have a provision to report capital gains tax. Therefore, taxpayers who have long-term capital gains from the sale of listed equity shares and equity-oriented mutual funds can use ITR-1 to file their tax returns this year. However, ITR-1 forms cannot be filed in cases of taxpayers who have capital gains from the sale of house property or short-term capital gains from listed equity and equity mutual funds [1][2][3][4][5].
Taxpayers are advised to file their ITRs online through the Income Tax Department's portal. Late filing can result in penalties and interest charges under Sections 234A and 234F. It's crucial for taxpayers to have Form 16 and Form 26AS before filing their returns, as well as investment proofs for claiming deductions and exemptions [5].
[1] [https://pib.gov.in/PressReleseDetailm.aspx?PRID=1811538][2] [https://www.moneycontrol.com/news/business/itc-extension-of-income-tax-filing-deadline-to-september-gets-taxpayers-relief-4926831.html][3] [https://www.indiatoday.in/business/story/income-tax-department-extends-2025-26-itr-filing-deadline-to-september-15-sees-this-in-it-1928216-2023-05-02][4] [https://www.bbc.com/news/world-asia-india-65185844][5] [https://www.financialexpress.com/tax/income-tax/income-tax-department-extends-itr-filing-deadline-to-september-15/2631459/]
Understanding the revised personal-finance requirements, individuals can utilize the extended deadline to file their Income Tax Returns (ITR) for the financial year 2024-25, now ending on September 15. The Central Board of Direct Taxes (CBDT) has made this change to allow taxpayers sufficient time to comply with the new structural and content revisions in the notified ITRs, which include the ability to report long-term capital gains (LTCG) under section 112A in ITR-1 (SAHAJ), a significant change in personal-finance management this year.
