CBDT Extends Due Date for Filing Personal Income Tax Returns for FY 2024–25 to 15 September 2025

 Background

The Central Board of Direct Taxes (CBDT) has recently announced an extension of the due date for filing Income Tax Returns (ITRs) for the financial year 2024–25 (assessment year 2025–26), moving the deadline from 31 July 2025 to 15 September 2025. This decision comes in the context of substantial revisions made to the ITR forms and related procedural updates.

Earlier, the CBDT had notified revised ITR Forms 1 to 7 for FY 2024–25 with the stated objective of simplifying compliance and enhancing transparency. Key amendments introduced in these forms include:

• Eligibility for Simpler Forms: Salaried taxpayers and small business owners with long-term capital gains not exceeding INR 1,25,000 are now eligible to file using ITR-1 or ITR-4.

• Revised Capital Gains Schedule: Updates reflect the amended tax rates effective from 23 July 2024.

• Characterisation of Certain Gains: Capital gains arising from unlisted bonds and debentures are now to be treated as short-term capital gains (STCGs), effective from 23 July 2024.

• Other Reporting Changes: The new forms mandate the specification of TDS section codes, disallow the use of Aadhaar Enrolment IDs, and incorporate other streamlining features.

Press Release

A press release issued by the CBDT on 27 May 2025 provides the rationale for the extension of the due date. The following key factors were cited:

a) The significant structural and content-related changes in the new ITR forms have necessitated additional time for system development, integration, and testing of e-filing utilities.

b) The timing of TDS credit reflection, which depends on statements due by 31 May 2025, would lead to a limited effective filing window without the extension, potentially causing compliance challenges for taxpayers.

Taking these concerns into account—and with a view to ensuring a smoother and more accurate return filing experience for taxpayers—the CBDT has extended the due date for filing returns of income for FY 2024–25 to 15 September 2025. This extension applies to taxpayers covered under clause (c) of Explanation 2 to Section 139(1) of the Income-tax Act, 1961 (ITA), namely individuals, Hindu Undivided Families (HUFs), and partnership firms not subject to tax audit requirements.

A formal notification to this effect is awaited.

Implications and Commentary

The extension is a welcome relief for taxpayers and professionals alike, particularly in light of the delayed release of the revised ITR forms—which in past years were typically notified by February or March. The belated release this year had already led to expectations of a filing deadline extension.

From the administration’s perspective, the extension is also a practical necessity to ensure the timely deployment of updated e-filing utilities in compliance with newly introduced tax provisions and reporting formats.

It is also noteworthy that several provisions under the ITA are directly linked to the due date under Section 139(1), including:

• Exemptions on capital gains under Sections 54 and 54EC;

• Filing of Form 10-IEA to opt out of the new tax regime under Section 115BAC;

• Deductions under Chapter VI-A.

Consequently, these timelines are also expected to shift to 15 September 2025. Moreover, no interest under Section 234A may be levied for returns filed by the extended due date, and carry-forward of losses is also likely to be permitted in such cases. That said, stakeholders are advised to await the final Notification for confirmation of these consequential extensions and conditions.