Income Tax Department Has Extended ITR Deadline — But Not for Everyone! Are You Among the Lucky Ones?

CBDT extends ITR deadline to September 15, 2025, for non-audit taxpayers due to delayed rollout of revised return forms and utilities for AY 2025–26; audited taxpayers must still follow original dates.

Income Tax Department Has Extended ITR Deadline — But Not for Everyone! Are You Among the Lucky Ones?

The Income Tax Department has extended the Income Tax Return (ITR) filing deadline for Assessment Year (AY) 2025–26, but not all taxpayers will benefit from it. If you're someone who doesn’t need to get your accounts audited — like salaried employees or individuals with simple income sources — you now have until September 15, 2025, to file your ITR. This is a 45-day extension from the original deadline of July 31. However, if your income is from business or profession and your accounts are subject to audit, this extension does not apply to you.

To make things clearer, let’s understand what AY and FY mean — terms you’ll hear often while filing taxes. The Financial Year (FY) is the year in which you earn your income. For example, income earned between April 1, 2024, and March 31, 2025 falls under FY 2024–25. The Assessment Year (AY) is the year that follows the financial year and is when the income is assessed and taxed — in this case, AY 2025–26. So, the income you earned in FY 2024–25 will be reported and taxed in AY 2025–26.

According to the latest notification from the Central Board of Direct Taxes (CBDT), the extension was given due to major changes in the ITR forms this year and the delay in system readiness. Normally, the ITR filing process starts on April 1 of the assessment year. But for FY 2024–25 (AY 2025–26), the filing process will only begin in June 2025, because of significant updates in the forms and utilities.

Who Can File by the Extended Deadline?

The new deadline of September 15, 2025, applies to:

• Salaried individuals
• Hindu Undivided Families (HUFs)
• Individuals not liable for tax audit
• AOPs/BOIs (like housing societies) whose accounts don’t need auditing

This group usually gets Form 16 in June, giving them limited time to file returns. The extension gives them a helpful window to adjust to the revised ITR forms and ensure accurate filing.

No Extension If Your Accounts Are Audited

If you're a business owner, professional, LLP, or someone whose accounts need to be audited, the extension does not apply. You must follow the original deadlines:

• Tax Audit Report (Section 44AB): September 30, 2025
• ITR Filing (Audited Accounts): October 31, 2025
• Transfer Pricing (TP) Reports (international transactions): November 30, 2025

If you fall in this category, make sure not to misread the extension news — your deadlines remain unchanged.

Other Important ITR Deadlines for AY 2025–26:

Filing after the deadline can cost you. As per Section 234F, there’s a penalty of Rs 1,000 if your total income is under Rs 5 lakh and Rs 5,000 if it’s over Rs 5 lakh. Also, interest will be charged under Sections 234A, 234B, and 234C for delay in paying advance tax or self-assessment tax. And if you miss filing on time, you can’t carry forward certain losses, which may hurt your future tax benefits.

Why Was the Deadline Extended This Year?

This year, the Income Tax Department made structural and content changes to ITR forms, which took more time to finalize. Also, the system utilities — the software and online tools used to file returns — are being rolled out with delays. On top of that, TDS credits (like the ones shown in Form 26AS) usually reflect only after mid-June. These factors made it tough for non-audit taxpayers to file by July 31, prompting the government to extend the deadline to September 15 for them.

Final Word: Don’t Assume — Check Your Category

Whether you’re a salaried employee or a business owner, it’s important to know where you stand. If your accounts don’t need auditing, the new deadline gives you more breathing room — but don’t leave it until the last minute. If your accounts do require auditing, your deadlines are unchanged. Start preparing your documents now and stay ahead to avoid penalties, interest, or rejection of losses.

The ITR season may have started late this year — but if you stay alert and file on time, you’ll have peace of mind and a smooth tax experience.