Deadline Extended Amid Ongoing Delays
The Income Tax Department has extended the due date for filing Income Tax Returns (ITR) for Assessment Year 2025–26 (FY 2024–25) from July 31 to September 15, 2025, citing late rollout of ITR forms and utilities. This grant of extra time offers taxpayers relief but also triggers questions about interest payouts on refunds and delayed compliance. The revised forms—and the prolonged rollout—suggest a complex filing season ahead.
However, experts continue to expect possible further extension. Forms for ITR‑5, 6, and 7 are still unavailable, impacting trusts and companies. Tax professionals suggest deadlines could shift again if utilities remain inaccessible.
📌 Why Delay Filing Until Mid‑June?
Despite form availability in April and May, experts advise taxpayers to avoid filing before June 15. Key reasons include:
- Completion of Form 16 and 16A issuance, typically by mid‑June.
- Annual Information Statement (AIS) and Form 26AS data updates.
- Early filings may encounter technical glitches with incomplete utilities.
⏳ Refund Delays & Processing Interest
Taxpayers who file late—even before September 15—may experience delayed refunds. Interest is payable on refunds delayed beyond 30 days. Extended processing and stringent checks may increase the government’s interest burden.
🔢 Simplified but Complex: New ITR Forms & Rule Changes
The fiscal year introduced significant structural changes in income tax slabs and capital gains regimes. ITR forms now require bifurcated capital gain reporting with new validation rules. Tax experts warn of stricter scrutiny, especially for high refunds and mismatches in Form 26AS or AIS.
📝 When Is Filing Mandatory?
Under the Income Tax Act, 1961, individuals must file ITR if any of the following apply:
- Gross total income exceeds ₹2.5 lakh (old regime) or ₹3 lakh (new regime)
- TDS deducted exceeds ₹25,000 (₹50,000 for seniors)
- Deposits above ₹1 crore in current account or high foreign travel expenditure
- Ownership or authority over foreign assets or accounts
Entries like NIL returns, capital losses, or refunds still warrant filing—even below thresholds—to claim benefits or legal compliance.
✅ Why Voluntarily File ITR—even with No Tax Liability?
Filing a NIL return offers key benefits:
- Acts as legal proof of identity and income, useful during visa processing, loan applications, or property transactions.
- Allows claiming tax refunds or carrying forward losses, applicable to stock trading and capital losses.
- Facilitates smoother processing of future assessments or audits.
⚠️ Legal Consequences of Missing Deadlines
Missing the September 15 extended deadline doesn’t end filing options—but carries penalties:
- Belated return deadline: up to December 31, 2025, but subject to interest and penalty under Sections 234A/B/C.
- Potential loss of loss‑carrying privileges, delayed refunds, and higher audit scrutiny.
🏛️ New ITR-U: Correcting Past Errors
Under the Finance Act 2025, the CBDT has introduced ITR-U, allowing taxpayers to file an updated return over the next four years to fix omissions or errors. The facility promotes transparency but comes with a fixed penalty structure.
🔍 Summary: Legal Guidance & Taxpayer Takeaway
- The deadline extension provides more time but may increase government payouts via refund interest.
- Wait until after June 15 to file returns to ensure accurate data and limit glitches.
- Even with zero taxable income, a voluntary ITR helps in legal and financial validation.
- Missed deadlines still allow belated filing—but with penalties, delayed refunds, and risk of audit.
- The ITR‑U amendment updates the legal framework, supporting post‑filing correction with penalties for delayed disclosures.
🏁 Final Word
The ITR filing season for AY 2025–26 promises to be one of the most complex and scrutinised in recent times. Multiple deadline extensions, system delays, tighter compliance rules, and the advent of ITR‑U signal a vital evolution in India’s tax landscape. For taxpayers and legal practitioners alike, staying current with evolving rules—in terms of timing, documentation, and statutory changes—is essential to avoid legal complications and make informed financial decisions.
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