New Delhi [India]: In a significant relief to taxpayers, the Central Board of Direct Taxes (CBDT) on Tuesday announced that the due date for filing Income Tax Returns (ITRs) for Assessment Year 2025–26 has been extended from July 31 to September 15, 2025.
“To facilitate a smooth and convenient filing experience for taxpayers, it has been decided that the due date for filing of ITRs, originally due on July 31, 2025, is extended to September 15, 2025,” the CBDT stated.
A formal notification will be issued separately to this effect.
Reason for Extension: System Updates & Structural Changes
The CBDT noted that the newly notified ITR forms for AY 2025–26 have undergone substantial structural and content revisions. These changes are aimed at:
- Simplifying the return filing process
- Enhancing transparency
- Ensuring accurate and complete reporting
Because of the extensive changes, additional time is required for:
- Development of e-filing systems
- Integration of new utilities
- Testing of updated ITR software and portals
The board added that this move is expected to address concerns raised by stakeholders and allow adequate time for compliance.
New Income Tax Code in Progress
This extension comes amid broader reform efforts by the government. On February 13, Union Finance Minister Nirmala Sitharaman tabled a new Income Tax bill in the Lok Sabha, seeking to replace the Income Tax Act of 1961.
In the July 2024 Budget, the government had proposed a comprehensive review of the Act to:
- Make it concise and lucid
- Minimize disputes and litigation
- Improve compliance for all categories of taxpayers, including individuals, businesses, and non-profit organisations
Stakeholders across sectors were encouraged to submit feedback and recommendations on the new bill.