New Delhi, May 27, 2025 || Taaza Wire Finance desk
In a big relief to taxpayers, the Central Board of Direct Taxes (CBDT) has extended the deadline for submitting ITR filing for Assessment Year (AY) 2025–26 from July 31, 2025, to September 15, 2025.
The move gives 46 additional days to submit returns, particularly helping salaried taxpayers and small businesspersons. The move comes during comprehensive structural changes in ITR forms, system overhauling, and TDS-AIS reconciliation lags.
New ITR Due Date for AY 2025–26
| Old Deadline | New Deadline | Extension |
|---|---|---|
| July 31, 2025 | September 15, 2025 | 46 days |
🔍 Why the ITR Filing Deadline Was Extended
CBDT has cited multiple reasons for this move:
- Significant changes in ITR Forms for FY 2024-25
- Need for system development & utility rollout
- Delay in TDS credit reflection, expected from early June
- Enhanced focus on compliance, accuracy, and transparency
“This extension ensures a smoother and more accurate filing experience for taxpayers,” said CBDT in an official statement on X (formerly Twitter).
Key Changes in ITR Forms for AY 2025–26
The Income Tax Department has notified all seven ITR forms for AY 2025–26, with major updates to ease compliance and improve reporting.
🔹 Changes in ITR-1 & ITR-4:
- Now allows reporting of long-term capital gains (LTCG) up to Rs 1.25 lakh
- Previously, such filers had to switch to ITR-2
🔹 Changes in ITR-2, 3, 5, 6, 7:
- Capital gains must now be reported before and after July 23, 2024
- Reflects changes announced in Budget 2024, where LTCG tax on real estate was reduced to 12.5% without indexation
🔹 ITR-3 Update:
- Threshold for reporting assets/liabilities in ‘Schedule AL’ raised from Rs 50 lakh to Rs 1 crore
Who Should File Which ITR Form?
| ITR Form | Who Should File |
|---|---|
| ITR-1 (Sahaj) | Salaried individuals with income up to Rs 50 lakh |
| ITR-4 (Sugam) | Individuals, HUFs, and firms under presumptive taxation |
| ITR-2 | Individuals & HUFs with capital gains (not business income) |
| ITR-3 | Business/profession income holders |
| ITR-5 | Firms, LLPs, and cooperative societies |
| ITR-6 | Companies under the Companies Act |
| ITR-7 | Trusts and charitable institutions |
System Readiness and TDS Credit Delays
Due to extensive updates in the ITR software utilities, additional time was required to:
- Integrate updated forms into the e-filing system
- Ensure reflection of TDS credits from statements due on May 31, 2025
- Prevent mismatch errors in AIS and TIS
What CBDT Said
“In view of the extensive changes and stakeholder feedback, the extension will provide adequate time for compliance and help ensure the accuracy and integrity of the return filing process.”
A formal notification regarding the extension is being issued separately.
✅ Final Word for Taxpayers
If you’re a taxpayer, especially a salaried individual or small business owner, this extension is a chance to:
- File your returns without last-minute stress
- Ensure accuracy by reconciling TDS and AIS
- Make use of the new, simplified ITR forms
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