India’s apex direct tax policy-making body has extended the income-tax return (ITR) filing deadline for assessment year (AY) 2025–26 (financial year 2024–25) to 15 September for individuals and entities not requiring an audit of their accounts. The Central Board of Direct Taxes (CBDT), under the Union finance ministry, announced the extension in a statement on Tuesday. Traditionally, the due date for such returns falls on 31 July.
The deadline has been extended due to changes in digital ITR forms this year, which require more time to update tax systems and release the necessary filing utilities, the CBDT said. While the forms have been notified, they have yet to be incorporated into the filing software. Typically, the software is available in early April, experts noted.
This year’s ITR forms have undergone significant revisions aimed at enhancing transparency and simplifying compliance. They now require more detailed disclosures on tax-saving investments, house rent allowance (HRA), and tax deducted at source (TDS) on non-salary income.
At the same time, compliance requirements for reporting assets and liabilities have been eased. Taxpayers with long-term capital gains (LTCG) of up to ₹1.25 lakh from listed stocks and equity mutual funds are now eligible to file the simpler ITR-1 form.
“Given the complexity and expanded reporting requirements in the revised forms—including granular disclosures on capital gains, foreign income, and asset ownership—the extension offers much-needed relief to taxpayers,” said Sandeep Sehgal of AKM Global, a tax and consulting firm, said.
Sehgal added that the extra time will aid in a smoother transition to the new compliance regime, helping taxpayers correctly interpret the changes and ensure accurate filings.
Sonu Iyer, partner and national leader, people advisory services–tax at EY India, said the updated forms reflect amendments introduced in the Finance Act, 2024, and require more detailed reporting.
In a major relief to middle-class taxpayers, Budget 2025–26 raised the threshold for zero tax liability to ₹12 lakh under the new tax regime—equivalent to a monthly income of ₹1 lakh, excluding special-rate income such as capital gains. For salaried taxpayers, this limit rises to ₹12.75 lakh due to the standard deduction of ₹75,000.
Further, the Budget rationalised TDS rules by reducing the number of applicable rates and thresholds. The threshold amounts for tax deduction were also raised to improve clarity and consistency.
These policy changes are part of a broader push to widen the tax base, uncover undeclared income through data matching, and promote digital compliance.
The Income Tax department collected ₹22.26 trillion in direct taxes after adjusting for refunds in the financial year ended March 2025, marking a 13.57% year-on-year growth, according to official data.
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