The Central Board of Direct Taxes (CBDT) recently extended the Income Tax Return (ITR) filing deadline for Assessment Year (AY) 2025–26 from July 31 to September 15, 2025, aiming to provide relief amid major form revisions and system readiness issues. Yet, as of September 4, just 4.56 crore returns have been filed, with only 3.17 crore processed. Here’s a complete breakdown of the situation, implications for taxpayers, and what lies ahead.
Why the Extension Was Declared
Structural Overhaul of ITR Forms
This year, the ITR forms underwent significant changes—both in structure and content—necessitating updates to capture new disclosures required by the Finance Act, 2024. These revisions added complexities, demanding additional integration and testing time for e-filing utilities.
Technical Setbacks and Filing Disruption
Traditionally, ITR forms are notified early in the year. However, for AY 2025–26, forms were released only in late April or early May. This delay, coupled with backend integration issues, narrowed the window for taxpayers to file accurately.
Late Reflection of TDS Credits
TDS statements, filed by May 31, began reflecting in taxpayers’ accounts in early June—further compressing the already tight filing window.
This combination of form changes, delayed backend preparedness, and late TDS updates prompted CBDT to extend the deadline to September 15, 2025.
Filing Status Snapshot
Here’s where things stand as of early September:
Total ITRs Filed: 4.56 crore
E-Verified ITRs: Over 4.33 crore
Processed ITRs: Approximately 3.17 crore (~70% processing rate)
This leaves 1.39 crore filers still waiting for their returns to be processed or refunds to be credited—a sign of backlog at the processing end.
Late Filing Penalties: What You Must Know
If you miss the September 15 deadline, here’s what could happen:
Section 234F – Late Fees
₹1,000 if total income is below ₹5 lakh
₹5,000 for incomes of ₹5 lakh or more
Interest on Delayed Tax Payments
Section 234A: 1% per month on delayed filing
Section 234B/C: Additional interest for underpayment of advance tax or instalments
Other Important Filing Dates
Audit cases (if required): Deadline extended to approximately October 31
Belated/Revised Returns: Up to December 31, 2025
Updated Returns (ITR‑U): Up to March 31, 2030 for AY 2025–26
Why Filing Numbers Are Lagging
Last-Minute Taxpayer Response
Despite the extension offering extra relief, only 4.56 crore have filed. Many taxpayers appear to be waiting till the deadline, while professionals struggle with complex form changes.
Technical Glitches
IT professionals and associations, including FKCCI, CAAS (Surat), and the Bhilwara Tax Bar Association, have requested additional deadline extensions citing glitches, overlapping compliance loads, and festive season constraints.
Taxpayer Action Plan: What You Should Do Now
File your ITR by September 15 to avoid penalties and interest.
Even if you haven’t filed, ensure that self-assessment tax due is paid by July 31 to avoid interest.
Keep checking the status for processing updates and possible refunds.
Avoid form errors—include all crucial disclosures (Schedule FA, VDA, etc.) to prevent defective returns.
Use the extra filing window to review, correct, and finalize filings.
Extended Impact: For Auditors and Professionals
While individual non-audit filers received a reprieve, accountants and audit professionals remain under pressure. Organizations like BCAS petitioned for extensions due to compressed timelines, technical issues, and administrative challenges.
The broader professional environment underscores the true value of this extension—not just for taxpayers but for service-driven stakeholders too.
Summary Table
Topic | Key Details |
|---|---|
| Deadline Extension | July 31 → September 15, 2025 |
| Reason | ITR form overhaul, backend delays, TDS uptake |
| Returns Filed | 4.56 crore (as of Sept 4) |
| E-Verified Returns | 4.33 crore |
| Processed Returns | 3.17 crore (~70%) |
| Balance Pending | ~1.39 crore |
| Late Filing Fee (234F) | ₹1,000 (income < ₹5L); ₹5,000 (income ≥ ₹5L) |
| Interest (234A/B/C) | 1% per month; other penalties based on tax dues |
| Audit Case Deadline | Around October 31 |
| Belated/Revised Return Date | Up to December 31, 2025 |
| ITR‑U Filing Window | Up to March 31, 2030 for AY 2025–26 |
Final Thoughts
The government’s extension of the ITR filing deadline to September 15 was a well-timed, considerate move amid structural complexities and technical challenges. Yet with only 4.56 crore returns filed and a 70% processing rate, many taxpayers are still waiting in limbo.
If you haven’t filed yet—now’s the time. Use these last days to sort documentation, cross-check your tax return, and file without delay. Penalties and interest will only mount, and with ITR processing backlog evident, earlier filings could mean faster resolution or refunds.
