New Delhi, May 27: In a relief for taxpayers, the Income Tax Department has extended the deadline for filing Income Tax Returns (ITRs) for Assessment Year (AY) 2025-26 from July 31 to September 15. The extension applies to individuals, Hindu Undivided Families (HUFs), and entities not requiring audit.
The Central Board of Direct Taxes (CBDT) said the extension was necessary to give more time for incorporating changes in ITR forms and rolling out the corresponding filing utilities.
“This year, the ITR forms were notified later than usual — in late April and early May — instead of January or February, as was the past practice,” the CBDT said in a statement. It added that the ITRs had undergone structural and content revisions to simplify compliance, enhance transparency, and improve accuracy in reporting.
The delay in TDS credit reflection, expected to begin only in early June, also contributed to limiting the effective window for filing returns.
Notable changes this year include:
- ITR-1 and ITR-4 now allow reporting of long-term capital gains (LTCG) up to Rs 1.25 lakh from listed equities — earlier such filers had to use ITR-2.
- Drop-down menus have been introduced in the utility for selecting deductions under Sections 80C, 80GG, and others.
- Detailed section-wise TDS information must now be furnished.
Under current law, LTCG up to Rs 1.25 lakh from sale of listed shares and mutual funds is tax-exempt. Any gains exceeding that threshold are taxed at 12.5%.
Officials attributed the delayed rollout of forms to the department’s focus on the new Income Tax Bill, introduced in Parliament this February.
Taxpayers now have until September 15 to file returns for income earned during FY 2024-25 (April–March).
