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ITR filing last date extended from July 31, 2025, for FY 2024-25 (AY 2025-26): Check the new date here

ITR filing last date extended from July 31, 2025, for FY 2024-25 (AY 2025-26): Check the new date here

Economic Times27-05-2025

The Income Tax Department has extended the due date to file income tax return for FY 2024-25 (AY 2025-26) from July 31, 2025, to September 15, 2025. The decision was made after a delay in issuing the notification of income tax return forms. Further, the income tax department is yet to issue the utilities to file the income tax return.
The Income Tax Department announced this via a post on X (formerly known as Twitter). As per the post, "Kind Attention Taxpayers! CBDT has decided to extend the due date of filing of ITRs, which are due for filing by 31st July 2025, to 15th September 2025. This extension will provide more time due to significant revisions in ITR forms, system development needs, and TDS credit reflections. This ensures a smoother and more accurate filing experience for everyone. Formal notification will follow."
— IncomeTaxIndia (@IncomeTaxIndia) Chartered Accountant Ashish Niraj, Partner A S N & Company, says, 'This extension is a welcome step as today on 27th May 2028, till 5 PM, ITR is not available to be filed on the Income Tax Portal. Even AIS is not getting fetched properly in many cases. Now, as the Income Tax Department is taking time to enable the filing of Income Tax Return on the portal, this extension will give relief to professionals and taxpayers both."
The ITR filing of July 31, 2025, applies to most general categories of taxpayers. This includes most salaried employees and all those taxpayers whose accounts are not required to be audited. Salaried employee will get 46 days extra to file their income tax returns. A penalty of up to Rs 5,000 will be applicable if the ITR is not filed by the last date.
Also read: Taxpayers should avoid filing ITR before June 15
The Central Board of Direct Taxes (CBDT) has clarified the reasons for extending this due date. As per CBDT, "The notified ITRs for AY 2025-26 have undergone structural and content revisions aimed at simplifying compliance, enhancing transparency, and enabling accurate reporting. These changes have necessitated additional time for system development, integration, and testing of the corresponding utilities. Furthermore, credits arising from TDS statements, due for filing by 31st May 2025, are expected to begin reflecting in early June, limiting the effective window for return filing in the absence of such extension."
The tax department further said, "In view of the extensive changes introduced in the notified ITRs and considering the time required for system readiness and roll-out of Income Tax Return (ITR) uilities for Assessment Year (AY) 2025-26, the Central Board of Direct Taxes (CBDT) has decided to extend the due date for filing returns.""Accordingly, to facilitate a smooth and convenient filing experience for taxpayers, it has been decided that the due date for filing of ITRs, originally due on 31st July 2025, is extended to 15th September 2025. A formal notification to this effect is being issued separately. This extension is expected to mitigate the concerns raised by stakeholders and provide adequate time for compliance, thereby ensuring the integrity and accuracy of the return filing process," said the CBDT in the post on X.

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Probability of inquiry from tax dept could be higher in old tax regime, says Preeti Sharma of BDO India
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Mint

time24 minutes ago

  • Mint

Probability of inquiry from tax dept could be higher in old tax regime, says Preeti Sharma of BDO India

Income Tax (I-T) department has released online utilities for ITR-1 and ITR-4 but not yet for ITR-2 and ITR-3. As soon as they are released, taxpayers are recommended to start the process of filing their tax returns, suggests Preeti Sharma, Partner, Global Employer Services, Tax & Regulatory Services of BDO India. In an email interview with MintGenie, she shares her views on income tax forms, new tax regime, importance to engage an expert for filing of income tax return and recommendations for the tax department. The due date of filing Income-tax return for the Financial Year 2024-25 has been extended from 31 July 2025 to 15 September 2025. This is owing to the introduction of significant changes in the ITR forms. The online utility for Form ITR 1 and ITR 4 is already notified. However, Form ITR 2 and ITR 3 are not yet available for filing. It is expected that new online forms will be pre-filled with maximum possible information based on the Significant Financial Transactions being reported by multiple departments and divisions across India. Once the ITR form applicable to you is available for filing, it is recommended to start the process of filing your tax return rather than waiting for the due date. This will have the following benefits: Online form will be pre-filled with your income, TDS and other tax payment details. If you start the process early, you will have time to validate the information, and raise dispute with the tax department if the information is not captured accurately. At the same time, if TDS and TCS are not reflecting, liaise with the deductor to take corrective action. The new date is an extension for filing of your tax return. However, the advance tax payment obligation remains the same. If you have not paid advance taxes and prefer to pay tax at the time of filing of your tax return, you will incur additional interest obligation for the delay in payment of taxes if you defer the tax payment exercise to September. Early filing of ITR can help in avoiding technical glitches and server downtime due to last-minute rush. As has been seen in past years, as initially fewer individuals opt to file the tax returns, their returns also get processed faster. No major changes are anticipated in the tax return form and return filing process owing to the introduction of the new Income-Tax Act. The new Act aims to reduce legal complexity; however, the major income heads and concept of taxation are kept as they are. We can expect changes in the forms, including renumbering of section, revised tax slabs and rebates amount, however, largely no major changes are expected in the tax filing process. There is no standard answer as identification of a beneficial tax regime mainly depends on an individual's structure, available deductions. The old tax regime offers various deductions & exemptions such as House Rent Allowance, Leave Travel Allowance, and popular deductions under Section 80C (investment Provident Fund, Life Insurance policies, etc.) and Section 80D (health insurance premium), etc. On the other hand, the new tax regime was introduced to simplify the tax structure; hence, the above-mentioned deductions/ exemptions are not available in the new regime, but it offers lower income-tax rates as compared to the old regime. The new regime is beneficial for those who do not have major exemptions or deductions to claim and prefer hassle-free filing. Although a case-specific calculation is recommended, but at the high level, if you expect all your exemptions / deductions are likely to be more than ₹ 4,00,000, old regime may have lower tax liability. But at the same time, be mindful that you have to maintain full documentary evidences to support the deduction/ exemption claimed. The probability of enquiry from tax department is higher if old regime is opted. New regime is the default regime, and if the old regime is not specifically opted in tax return form, the online form will consider new regime while calculating your taxes. Yes, the new ITR-1 forms notified by the CBDT bring several positive and practical changes, particularly benefiting small investors and salaried taxpayers. One such welcome move is the inclusion of long-term capital gains (LTCG) reporting of up to ₹ 1.25 lakhs in the ITR-1 (Sahaj), reducing the need to switch to more complex forms like ITR-2. Other changes that have been introduced: TDS Disclosure: A new column in the TDS schedule requires taxpayers to specify the section under which it is deducted, such as section 192 for salary, section 194A for interest, etc. This might help to reconcile TDS claimed in the ITR by the taxpayer with Form 26AS, potentially minimising mismatches. A specific bank account for refunds by ticking a checkbox next to a pre-validated account may be selected, while all active accounts still need to be reported, regardless of their validation status. Aadhaar: Only the 12-digit Aadhaar number is now accepted. The option to provide an enrolment ID has been removed, which may impact taxpayers awaiting Aadhaar issuance close to the filing deadline. ITR1 and ITR4 are updated with the above, however, we will need to wait for the actual rollout of utilities of other forms to gauge the changes. With the introduction of pre-filled ITR Forms on the e-filing portal based on Form 16, Form 26AS, AIS, TIS, Bank reports, Broker reports, etc., the return filing process has now become easier especially for salaried individuals with only one-two income sources such as bank interest, and some minor capital gains. The portal also provides a step-by-step guidance to help taxpayers file the ITR correctly. For many small taxpayers with limited source of income such as salary and interest, filing their ITR on their own can absolutely be a practical and cost-effective approach. Additionally, the IT department has introduced simplified forms like ITR-1 (Sahaj) & ITR-4 (Sugam), which is designed specifically for such cases. However, if a taxpayer has more complex income — say, capital gains from multiple share transactions, rental income, foreign income, or wants to claim several deductions under the old tax regime, then, it is advisable to consult a tax expert to avoid mistakes that could lead to notices or penalties from the IT Department. Although the IT Department has made commendable progress in digitising and simplifying the tax filing process in recent years, I would like to propose the following changes to improve the return filing process. I. Enhanced accuracy of pre-filled data by strengthening the integration between banks, mutual funds, and SEBI. There are many instances where wrong data is reported in AIS statement of the individual taxpayers. II. More interactive guidance. For example, chatbot explaining sections in simple language and providing suggestions on eligible deductions based on taxpayer's available information III. Speeding up of refund processing and grievance redressal mechanism For all personal finance updates, visit here

FM to review backlog of income tax disputes on Monday, to push for early resolution
FM to review backlog of income tax disputes on Monday, to push for early resolution

Mint

timean hour ago

  • Mint

FM to review backlog of income tax disputes on Monday, to push for early resolution

New Delhi: Finance minister Nirmala Sitharaman will on Monday review the backlog of income tax disputes and explore ways of cutting down their pendency at a meeting with senior field officers, two persons informed about the development said, outlining efforts to make tax governance more efficient. The minister will also lead discussions on how to speed up tax refunds further and improve services to the taxpayer while enhancing the tax system's accountability, said one of the persons quoted above. Filed officers will also be asked to explain the average disposal time of grievances. The move is part of efforts to improve the ease of living and ease of doing business, which will complement the broader efforts at reforms and de-regulation. Sitharaman's meeting with Principal Chief Commissioners and other senior officials of the Income Tax Department aims to improve litigation management. The minister will review age-wise pendency of appeals and push for faster disposal of legacy cases, the person said. Issues related to tax refunds including those held up due to non-processing of tax returns under the automatic assessment process and cases where rectification of tax returns for issues like clerical error are impacted due to IT system-related problems will receive attention at the meeting, said the person. Field officers are expected to present data to the minister on pending taxpayer requests and grievances, their average disposal time and unresolved grievances in the department's online system e-Nivaran. The finance minister is likely to question the tax administration's zones with vigilance cases pending beyond permissible timelines and disciplinary matters pending for months, the person said. The minister will examine the best practices adopted by select regions and reiterate the need for a 'taxpayer-centric, tech-enabled, and transparent ecosystem across the Income Tax department,' added the person. Tax experts said the focus should be on setting up a robust framework to address the backlog of cases at the Commissioner of Income Tax (Appeals) level. 'Introducing specified time limits for disposal of appeals is long overdue, and this would ensure greater accountability within the department and reinforce certainty for taxpayers,' said Amit Maheshwari, tax partner at AKM Global, a tax and consulting firm. 'Additionally, the present requirement of a 20% pre-deposit in high-pitched assessments should be reconsidered to ease the financial stress on taxpayers. The refund mechanism needs more transparency, and the grievance redressal system must be made significantly more responsive and efficient,' added Maheshwari. At a meeting in the capital with senior officials last week, Sitharaman reviewed the performance of the Central Board of Indirect Taxes and Customs (CBIC) and urged swift closure of investigations, speedier tax refunds, and easier goods and services tax (GST) registration, Mint reported on Friday. The minister then asked the principal chief commissioners, chief commissioners, and director generals of CBIC to enhance performance, fill vacant posts, and enhance administrative efficiency. Queries emailed to the finance ministry on Friday seeking comments for the story remained unanswered at the time of publishing.

Refunds Dent Net Direct Tax Mopup
Refunds Dent Net Direct Tax Mopup

Time of India

time10 hours ago

  • Time of India

Refunds Dent Net Direct Tax Mopup

India's net direct tax collections declined 1.39% year-on-year to ₹4.58 lakh crore as of June 19 this fiscal, primarily due to a sharp 58% increase in refunds and muted growth in advance tax payments, official data showed. The figure includes ₹1.72 lakh crore from corporate tax and ₹2.72 lakh crore from personal income tax . India Inc's advance tax payments — a barometer of corporate performance and economic outlook — grew 4% year-on-year to ₹1.55 lakh crore. The rate of growth fell sharply from the year-ago period when advance tax collection grew 27% on-year to ₹1.48 lakh crore. Gross direct tax collections stood at ₹5.45 lakh crore, a 5% increase from the same period last year. However, the income tax department issued refunds of ₹86,385 crore until June 19, compared to ₹54,661 crore a year ago, pulling net collections down. 'The revised tax slabs and reduced personal tax rates that came into effect from April 1, 2025, have provided relief to salaried individuals, and this is naturally reflected in lower TDS collections,' said Samir Kanabar, tax partner at EY India. While higher volume of corporate tax refunds may weigh on short-term collection figures, it is also a sign of administrative efficiency, he said. A more balanced picture may emerge in the coming quarters, he added. Officials expect tax collections to catch up to meet the budget targets in the coming quarters even though global uncertainties amid US tariff threats and escalating Israel-Iran conflict may have some impact on corporate sentiments. 'We expect the collections to improve in the coming quarters as more people will file the returns,' a senior official told ET. The Centre has budgeted ₹25.2 lakh crore in net direct tax revenue for FY26, up from ₹22.3 lakh crore in FY25, when collections rose 13.6%, exceeding initial budgeted target. 'For a number of reasons, India finds itself in the position of strength amidst the ongoing global supply chain reset and, therefore, a turnaround in tax collections in next quarters could be quite likely,' said Sumit Singhania, partner at Deloitte India. Finance minister Nirmala Sitharaman is scheduled to engage with principal chief commissioners of the Income Tax Department next week to take stock of zone-wise collection trends and litigation management. The meeting will review age-wise pendency of appeals and push for faster disposal of legacy cases to reduce litigation burden, officials cited above said.

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