The Clock Is Ticking On ITR Filing
With just days left before the Income Tax Return (ITR) filing deadline, taxpayers across India are rushing to complete their submissions. The Central Board of Direct Taxes (CBDT) had earlier extended the due date for FY 2024-25 (AY 2025-26) from July 31 to September 15, 2025. This extension provided relief to individuals and small businesses struggling with compliance.
But as glitches on the income tax e-filing portal persist, a growing number of accountants and professionals are now calling for another extension.
Who Needs To File By September 15?
The September 15 deadline applies to taxpayers not subject to audit. This includes:
- Salaried employees, pensioners, and freelancers
- Hindu Undivided Families (HUFs)
- Individuals earning from rent, capital gains, or other income sources
- Small businesses and professionals under presumptive taxation schemes (Sections 44AD, 44ADA, 44AE)
- Filers using ITR-1 to ITR-4 forms
According to CBDT data, 5.47 crore ITRs have been filed so far—significantly less than the 7.28 crore filed last year around the same time.
Will There Be Another Extension?
At present, the Income Tax Department has not issued any update on extending the deadline beyond September 15. However, key industry bodies such as:
- Institute of Chartered Accountants of India (ICAI)
- Advocates Tax Bar Association
have urged the government to reconsider, citing:
- Persistent portal glitches during peak filing hours
- Delays in refund processing
- Technical issues with tracking status updates
Expert View:
“Given the sharp drop in filing numbers compared to last year, it seems reasonable that CBDT may consider another extension. However, taxpayers should not depend on it and must aim to file at the earliest,” said Ramesh Gupta, a Delhi-based chartered accountant.
What If You Miss The September 15 Deadline?
Missing the deadline comes with penalties under Section 234F of the Income Tax Act:
- ₹5,000 penalty – if taxable income exceeds ₹5 lakh
- ₹1,000 penalty – if taxable income is below ₹5 lakh
Other important details:
- Belated returns: Can be filed until December 31, 2025
- Revised returns: Also allowed until December 31, 2025
- Updated returns (ITR-U): Can be filed within 48 months (4 years), i.e., up to March 31, 2030
Impact On Investors And Economy
- Delayed refunds: Many taxpayers depend on ITR refunds for liquidity, and delays could affect personal cash flows.
- Compliance burden: Last-minute rush increases workload for chartered accountants and tax professionals.
- Government revenues: Timely filing helps the government assess and plan fiscal measures effectively.
Experts warn that continued portal issues could discourage compliance and reduce taxpayer confidence.
Future Outlook
If the government extends the deadline again, it may only be for a short grace period. Tax experts recommend not waiting until the last day, especially with high server loads causing portal crashes.
The future of ITR compliance could lean more heavily on automation and AI-driven processing, reducing manual delays. CBDT has already been investing in tech upgrades, but smooth taxpayer experience remains a pressing demand.
Quick Takeaways
- Current Deadline: September 15, 2025 (for non-audit taxpayers)
- Penalty after due date: ₹5,000 (above ₹5 lakh income), ₹1,000 (below ₹5 lakh income)
- Belated/ revised filing: Allowed till December 31, 2025
- Updated return: Allowed till March 31, 2030
- Extension possibility: Not yet confirmed
Final Word
As the countdown to September 15 continues, the big question remains: Will CBDT extend the ITR filing deadline once more?
For now, the safest bet for taxpayers is to file early and avoid penalties.
What do you think: Should the government extend the ITR filing deadline again, or is it time to enforce stricter compliance? Share your views in the comments.