What Changed? 🔄

The Central Board of Direct Taxes (CBDT) has extended the income tax return filing deadline for AY 2025-26 from 31 July 2025 to 15 September 2025 for non-audit taxpayers. This decision, announced via a May 27 circular [CBDT], addresses significant revisions to ITR forms, delays in system readiness, and staggered utility rollouts. TDS credits began reflecting only in early June, and key ITR utilities (like ITR-2 and ITR-3) were released in late July and August, compressing the filing window. The extension aims to ensure smooth, accurate compliance for taxpayers. 🗂️

Who Benefits from the Extension? 👤

The extension under Section 139(1) applies to assessees covered by clause (c) of Explanation 2—primarily individuals, Hindu Undivided Families (HUFs), and partnership firms not subject to audit. Their ITR filing deadline for AY 2025-26 is now 15 September 2025. Taxpayers requiring audits, such as businesses or professionals with higher turnovers, follow separate timelines: tax audit reports are due by 30 September, and audited returns by 31 October. Transfer pricing cases and updated returns have later deadlines under existing rules. 📋

Why This Matters ⚠️

Missing the extended 15 September deadline can lead to penalties, including interest under Section 234A for unpaid taxes and late fees under Section 234F. It may also delay refunds and restrict the ability to carry forward certain losses. While belated returns can be filed until 31 December 2025, they come with costs and limitations. With millions of filings still pending and professional bodies reporting portal issues and AIS/26AS mismatches, this extension provides a critical window to file accurately and avoid common ITR mistakes. 🕒

Filing Progress: Where We Stand 📊

As of early September, over 4.5 crore ITRs have been filed for AY 2025-26, with a significant surge expected before the 15 September deadline [CBDT, media reports]. The pace accelerated after ITR utilities stabilized in late July and August. However, stakeholder associations have flagged technical bottlenecks, AIS/26AS mismatches, and compressed timelines, urging further relief. The CBDT has maintained the 15 September deadline for non-audit cases as of now.

Real-Life Case Study: Riya’s Journey 🧑‍💼

Riya, a salaried professional with ESOP and mutual fund redemptions, began her AY 2025-26 ITR preparation in late August after ITR-2 and ITR-3 utilities stabilized. She noticed slight mismatches in her AIS dividend entries compared to broker TDS statements and a missing TDS credit from Q4. Using the extended deadline, Riya reconciled AIS with Form 26AS, obtained corrected dividend statements, and applied the revised capital gains schedule (effective 23 July 2024). She filed on 8 September, securing her refund without late fees or defective return notices. 📈

ITR Mistakes to Avoid 🚫

To ensure a smooth filing process, avoid these common pitfalls:

• Reconcile thoroughly: Match income and TDS across AIS, Form 26AS, and broker statements to avoid notices. 🔍
• Choose the right form: Use ITR-1 or ITR-4 for simpler profiles; ITR-2 or ITR-3 for complex incomes like capital gains. 📄
• Classify capital gains correctly: Follow updated schedules effective 23 July 2024 to prevent defective returns. 💰
• Accurate bank details: Ensure correct IFSC and account numbers for seamless refunds. 🏦
• E-verify promptly: Verify under Section 139 to avoid delays or invalid returns. ✅
• Avoid last-minute filing: File early to sidestep portal congestion reported by professional bodies. 🕑

Key Disclosures to Make 📣

For accurate income tax return filing, ensure you report:

• All interest income (savings, FDs, NBFCs), dividends, and capital gains, matching TDS section codes. 💸
• Exempt income like PPF interest and long-term equity gains under current rules. 🛡️
• Correct residential status and all active bank accounts during the year. 🏠
• Foreign assets, if applicable, to comply with disclosure requirements. 🌍
• For non-audit business or professional income, align turnover and cash flow with AIS/GST data to avoid scrutiny. 📊

Action Plan Before 15 September 🗓️

Follow these steps to meet the extended ITR filing deadline:

1. Reconcile data: Finalize AIS/26AS reconciliation to resolve mismatches. 🔎
2. Download ITR utility: Use the latest utility for your chosen form and pre-validate to catch errors. 💻
3. Pay taxes: Compute and pay self-assessment tax to avoid further interest under Section 234A. 💳
4. E-verify: Verify your return immediately after filing to ensure compliance. ✔️
5. File early: Submit several days before 15 September to avoid portal congestion risks. 🚀

Frequently Asked Questions ❓