In an insightful conversation between Arjuna and Krishna, the duo discusses the extension of the ITR filing due date for AY 2025-26. The CBDT has extended the original deadline of 31st July 2025 to 15th September 2025 for small taxpayers not requiring audit, citing major changes in ITR forms and system readiness. Utilities for ITR-1 and ITR-4 have been released, allowing salaried and presumptive income taxpayers to begin filing. Taxpayers are advised to reconcile TDS/TCS, review new ITR requirements, and avoid last-minute filing. While this extension offers relief, it may lead to portal load and spillover into audit season, potentially affecting the tax calendar.
Arjuna (Fictional Character): Krishna, It was in the news that the due date of ITR filing has been extended. For whom is the due date extended, and till when?
Krishna (Fictional Character): Arjuna, 31st July 2025 was the original due date for filing of ITR for small taxpayers who are not required to get their books of accounts audited under the Income Tax Act, 1961. The CBDT have introduced few changes to the existing ITR form for the FY 24-25 and thus to ensure the smooth and convenient filing of returns the ITR due date for returns to be filed on 31st July has been extended to 15th September 2025.
Arjuna (Fictional Character): Krishna, why have the Income Tax Authorities extended the due date?
Krishna (Fictional Character): Arjuna, owing to the following reasons, the original due date was further extended to 15th September 2025:
a. Extensive Changes in Notified ITRs.
b. Time Required for System Developments, Integration and Testing Corresponding Utilities & Rollout of Income Tax Return Utilities for AY 25-26.
The extended time limit is aimed at facilitating a smooth & convenient filing experience for taxpayers by mitigating the concerns raised by stakeholders and by providing adequate time for compliance.
Arjuna (Fictional Character): Krishna, have the tax authorities released any utilities for ITR Forms of FY 24-25?
Krishna (Fictional Character): Arjuna, utilities for ITR Form 1, for Salaried Individuals with total Income upto Rs. 50 Lakhs and ITR Form 4, for taxpayers having business income and who pay tax under the presumptive taxation scheme have been released by the authorities and persons who fall within the two categories can begin their return filing for the FY 2024-25.
Arjuna (Fictional Character): Krishna, how can the small taxpayers take advantage of this extended time limit?
Krishna (Fictional Character): Arjuna, the small taxpayers can benefit of the extended time limit by following ways:
1. Reconciliation of TDS/TCS: The small taxpayers can use this additional time to perform timely reconciliation of their TDS/TCS Credit with their AIS/Form 26AS and can follow up with their deductors in case of non-reflection of Credit.
2. Careful Assessment of Tax Particulars: The taxpayer should use the time to carefully assess the new changes and should ensure the correct filing of all particulars required in the return.
3. Additional Time: The taxpayers need not worry about the time delay due to technical issues while filing of returns, as they are now provided with an ample amount of time for the ITR.
Arjuna (Fictional Character): Krishna, is the extension a relief or a headache for the taxpayers?
Krishna (Fictional Character): Arjuna, the extension of the due date is seen as a relief by the small taxpayers however, the CBDT have not intimated any update on the due date for persons required to get their books of account audited under the Income Tax Act. The existing due date for filing of the Audit Report is 30th September, and the due date for filing ITR of Audit Cases is 31st October. However, the extension of the due date for small taxpayers to 15th September could result in a higher volume of activity on the portal in the months of September and October, and thus this could lead to further extension of Due Dates of Audit Cases, which extends the Tax Cycle and headaches for taxpayers.
Arjuna (Fictional Character): Krishna, what shall the taxpayers learn from this?
Krishna (Fictional Character): Arjuna, The extended time limit is due to new changes in ITR forms and the time required for aligning the existing systems to these changes. The taxpayers shall take note of these new changes in the ITR forms, which would require additional disclosures of Information by them, and shall observe utmost care in filing the returns. Further, he shall not wait till the very last month & shall proceed to file his return, as and when the utilities are rolled out.
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