ITR filing FY25 I-T dept extends last date for filing returns on income tax for FY25
The Income Tax (I-T) Department announced on Tuesday, May 27, that it 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 returns. Individuals and entities, who do not need to get their accounts audited, were required to file income tax returns (ITR) by July 31.
In a statement, the Central Board of Direct Taxes (CBDT) said that in view of the extensive changes introduced in the notified ITRs, and considering the time required for system readiness and rollout of ITR utilities for AY 2025-26, the due date for filing returns has been extended.
“To facilitate a smooth and convenient filing experience for taxpayers, it has been decided that the due date for filing ITR, originally due on July 31, is extended to September 15, 2025,” the CBDT said.
Why did the I-T dept extend ITR filing deadline?
“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,” a statement from CBDT said. “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,” it added.
The department said this extension will provide more time due to significant revisions in ITR forms, system development needs, and TDS credit reflections. It also ensures a smoother and more accurate filing experience for everyone. CBDT said that these changes have necessitated additional time for system development, integration, and testing of the corresponding utilities. CBDT added that a formal notification to this effect will be issued shortly.
“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,” it added.
ITR filing forms
Eralier this month, the income tax department has notified all seven income tax return forms for assessment year 2025-26. While ITR forms 1 and 4, which are filed by small and medium taxpayers, were notified on April 29; ITR-7, filed by trusts and charitable institutions, was notified on May 11.
One important change has been introduced in ITR-1 and 4, which was notified on April 29, relating to the reporting of capital gain income from listed equities. According to Vivek Jalan – Partner Tax Connect Advisory Services LLP, “The timeline of 31st July of filing ITRs for taxpayers are a big hardship every year. Every year there are changes in ITRs structure which means utilities take time to be published.”
“Every year TDS/TCS credits are reflected by 15th June, which means effectively only 1.5 months are available for filing such ITRs. It is a welcome move of extending the due date to 15th September this year,” said Jalan.
However it is a long standing demand of Taxpayers that permanently the due date of filing ITRs for such taxpayers be extended to 31st August atleast. It is also proposed by taxpayers that in the New Income Tax Bill 2025 which will see light of day from 1st April 2026, this new date be insetered ab-initio itself.
Now, salaried individuals and those under the presumptive taxation scheme, having long-term capital gains (LTCG) of up to ₹1.25 lakh in a financial year, will be able to file ITR-1 and ITR-4, respectively. Earlier, such persons/entities were required to file ITR-2.
Under the I-T law, LTCG of up to ₹1.25 lakh from sale of listed shares and mutual funds is exempt from tax. Gains exceeding ₹1.25 lakh/ annum are subject to 12.5 per cent tax.
One change which has been introduced in ITR forms 2, 3, 5, 6 and 7 pertains to rationalisation of capital gains tax. In Schedule Capital Gains of the ITR, capital gains must now be split based on whether they arose before or after July 23, 2024.
In the Budget presented on July 24, 2024, the government had proposed to lower long-term capital gains tax on real estate to 12.5 per cent without indexation benefit, from 20 per cent with indexation.
Indexation benefit allows taxpayers to arrive at the cost price of the property after adjusting for inflation. With this, individuals or HUFs who purchased houses before July 23, 2024, can opt to pay Long Term Capital Gain (LTCG) tax under the new scheme at the rate of 12.5 per cent without indexation or claim the indexation benefit and pay 20 per cent tax.
Also, in ITR-3, which is filed by individuals and HUFs having income from profits and gains of business or profession, the threshold for reporting assets and liabilities under ‘Schedule AL’ has been raised from ₹50 lakh to ₹1 crore, thus reducing the disclosure burden on middle-income taxpayers.
ITR Form 1 (Sahaj) and ITR Form 4 (Sugam) are simpler forms that cater to a large number of small and medium taxpayers. Sahaj can be filed by a resident individual having annual income of up to ₹50 lakh and who receives income from salary, one house property, other sources (interest) and agricultural income up to ₹5,000 a year.
Sugam can be filed by individuals, Hindu Undivided Families (HUFs) and firms (other than Limited Liability Partnerships (LLPs)) having a total annual income of up to ₹50 lakh and income from business and profession.
ITR-2 is filed by individuals and HUFs not having income from profits and gains in business or profession, but having income from capital gains. ITR-5 is filed by firms and Limited Liability Partnership and Cooperative Societies. ITR-6 is filed by companies registered under the Companies Act. ITR-7 is filed by trusts and charitable institutions.
