In a recent circular, the CBDT extended the Income Tax Return (ITR) filing deadline for non-audit cases—including salaried taxpayers—for the Assessment Year 2025-26. The new deadline is September 15, 2025, offering an additional 45 days beyond the usual July 31 date.
This move comes in response to multiple challenges:
- Delayed release of updated ITR forms and utilities on the Income Tax portal
- Late reflection of TDS details in Form 26AS and the Annual Information Statement (AIS)
- Technical issues hampering accurate and timely return filing
Self-Assessment Tax: No Extension Here
While return filing gets a breather, self-assessment tax must still be paid on or before July 31, 2025. Failing to do so will trigger interest under Section 234A, potentially increasing your tax burden. This distinction is crucial for taxpayers with additional tax dues beyond TDS.
Refund Interest: A Welcome Bonus for Some
The extension also has an upside. Under Section 244A, taxpayers eligible for refunds may earn interest from April 1, regardless of the revised filing date. This means a potential 33% increase in refund interest, offering a slight financial boost—though this interest is taxable and must be reported in the ITR.
Penalties, Belated Returns, and Deadlines to Remember
Missing the September 15 deadline will invite penalties:
- Rs 5,000 for incomes above Rs 5 lakh
- Rs 1,000 for lower incomes (under Section 234F)
However, you can still:
- File belated or revised returns until December 31, 2025
- Submit updated returns (ITR-U) up to March 31, 2030
Why Filing Early Is Still a Good Idea
Despite the extended deadline, experts advise salaried taxpayers to file early. Delaying till the last minute may expose you to:
- Server crashes on the e-filing portal
- Errors in TDS or AIS data
- Missed payments leading to interest charges
Filing sooner ensures peace of mind and faster processing of refunds.
Bottom Line:
The extension is a relief but comes with caveats. Pay taxes on time, review Form 26AS and AIS carefully, and file your ITR well before September 15 to avoid last-minute stress and financial penalties.
