New Delhi: The Income Tax Department on Tuesday extended the due date to file income tax returns for FY 2024-25 (AY 2025-26) from July 31 to September 15.
The Central Board of Direct Taxes (CBDT) has decided to extend the due date for filing returns “in view of the extensive changes introduced in the notified ITRs and considering the time required for system readiness and rollout of Income Tax Return (ITR) utilities for Assessment Year (AY) 2025-26”, according to an official statement.
This extension is expected to mitigate the concerns raised by stakeholders and provide adequate time for compliance, thereby ensuring the integrity and accuracy of the return filing process, the statement said.
The notified ITRs for AY 2025-26 have undergone structural and content revisions aimed at simplifying compliance, enhancing transparency, and enabling accurate reporting. These changes have necessitated additional time for system development, integration, and testing of the corresponding utilities. Furthermore, credits arising from TDS statements, due for filing by May 31, are expected to begin reflecting in early June, limiting the effective window for return filing in the absence of such extension, the statement said.
Accordingly, 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, is extended to September 15. A formal notification to this effect is being issued separately, the statement added.
The CBDT has notified the income tax return forms ITR-1 and ITR-4 for the financial year 2024-25 and the assessment year 2025-26 on April 30.
The returns for incomes earned during the financial year from April 1, 2024, to March 31, 2025, have to be filed using the new forms.
A major change in the ITR forms this year is that ITR-1 (SAHAJ) can be filed for notifying long-term capital gains (LTCG) under section 112A. This is subject to the condition that the LTCG is not more than Rs 1.25 lakh, and the income tax assessee has no loss to carry forward or set off under the capital gains head.
Earlier, ITR 1 did not have a provision to report capital gains tax. This year, taxpayers, who have long-term capital gains from the sale of listed equity shares and equity-oriented mutual funds, can use ITR-1 to file their tax returns.
However, ITR-1 forms cannot be filed in cases of taxpayers who have capital gains from the sale of house property or short-term capital gains from listed equity and equity mutual funds.
The notification also stipulates that in cases where income tax assesses have opted out of the new income tax regime in AY 2024–25, they must declare and opt to either continue or reverse the selection.
Those who have opted out of the new income tax regime for the first time in AY 2025–26 must furnish Form 10-IEA acknowledgement details.
Additionally, there must also be a clarification for the late filing of Form 10-IEA.