Income Tax Department Extends ITR Filing Deadline to September 15 for FY 2024-25

The Income Tax Department has postponed the last date to file income tax returns (ITRs) for the financial year 2024–25 (assessment year 2025–26) from July 31 to September 15.

“In view of the extensive changes introduced in the notified ITRs and considering the time required for system readiness and rollout of Income Tax Return (ITR) utilities for Assessment Year (AY) 2025-26,”
the Central Board of Direct Taxes (CBDT) stated on Tuesday.

This delay addresses stakeholder concerns and ensures a more accurate and smooth filing process. It is also expected to give sufficient time for utility system integration and testing.

What’s New in ITR Forms for AY 2025–26?

Structural and Functional Upgrades

The ITR forms released for AY 2025–26 introduce substantial structural and content changes. These updates are designed to:

• Simplify compliance

• Improve data transparency

• Enable precise reporting

The revised forms were notified on April 30, with filing applicable for income earned between April 1, 2024, and March 31, 2025.

Key Changes in ITR-1 and ITR-4

ITR-1 Now Allows Reporting of Certain LTCG

For the first time, ITR-1 (SAHAJ) permits taxpayers to report long-term capital gains (LTCG) under Section 112A if the gains do not exceed ₹1.25 lakh and no capital losses are carried forward or set off.

Previously, such reporting was not allowed under ITR-1. Now, individuals earning LTCG from listed shares and equity mutual funds can file using this simplified form.

When You Cannot Use ITR-1

However, ITR-1 remains ineligible for taxpayers who:

• Have LTCG from house property sales

• Earn short-term capital gains from listed equity or equity MFs

Income Tax Regime Selection and Form 10-IEA Rules

Clarifications for Regime Changes

Taxpayers who opted out of the new income tax regime in AY 2024–25 must indicate whether they wish to retain or reverse their selection this year.

“Those opting out of the new regime for the first time in AY 2025–26 are required to furnish the acknowledgement details of Form 10-IEA.”

Further clarification regarding late filing of Form 10-IEA is also expected in the official notification.

Utility Availability and TDS Data Reflection

One reason for the extension is the delayed reflection of TDS credit data, which is based on statements due by May 31. These credits typically begin appearing in early June, limiting the available window for timely return filing had the deadline remained unchanged.

“Accordingly, to facilitate a smooth and convenient filing experience for taxpayers, the due date for filing ITRs, originally July 31, has been extended to September 15. A formal notification to this effect will be issued separately,”
the CBDT added.

Conclusion 

The extension of the ITR filing deadline to September 15 for FY 2024–25 offers much-needed relief to taxpayers and tax professionals amid sweeping structural changes in the return forms.

With the inclusion of LTCG reporting in ITR-1, changes to the tax regime selection process, and the delayed reflection of TDS data, the decision by CBDT reflects a practical and compliance-friendly approach.

This move ensures that the return-filing utilities are fully prepared, reducing the risk of technical glitches and inaccuracies. Additionally, the extension supports the government's broader vision of simplifying tax administration and encouraging voluntary compliance.

As the new forms bring greater clarity and user-friendliness, taxpayers are encouraged to review their financial information carefully and ensure timely filing within the extended deadline. Once the formal notification is released, further clarity will emerge on regime transition and Form 10-IEA requirements, aiding smoother transitions for individual and small business taxpayers alike.