GG News Bureau
New Delhi, 27th May: The Income Tax Department has extended the due date for filing Income Tax Returns (ITRs) for Assessment Year (AY) 2025–26 from July 31 to September 15, 2025, for individuals, Hindu Undivided Families (HUFs), and entities not requiring an audit.
In a statement issued on Tuesday, the Central Board of Direct Taxes (CBDT) said the extension is aimed at facilitating a smooth filing experience for taxpayers following delays in notifying revised ITR forms and the corresponding utility tools. The ITR-1 and ITR-4 forms, applicable to those with income up to ₹50 lakh, were notified only in late April and early May, deviating from the usual January–February schedule.
“To ensure proper system integration and testing, and to allow time for the reflection of TDS credits from statements due by May 31, the deadline has been extended,” the CBDT noted. The TDS credits are expected to begin reflecting in early June, leaving a compressed window for return filing under the original deadline.
The ITR forms for AY 2025–26 have undergone structural and content revisions, aimed at simplifying compliance, enhancing transparency, and enabling accurate reporting. These revisions required additional time for developing and rolling out updated filing utilities.
One major change includes the allowance of long-term capital gains (LTCG) up to ₹1.25 lakh from listed shares to be reported in ITR-1 and ITR-4. Previously, such taxpayers were required to file ITR-2. The government has also introduced dropdown menus in the utilities for deductions under Sections 80C, 80GG, and others, alongside section-wise disclosure of TDS deductions.
Under current tax law, LTCG of up to ₹1.25 lakh from the sale of listed securities is exempt from tax, while gains beyond this threshold are taxed at 12.5%.
This year’s delay in form notification was attributed to the Revenue Department’s focus on the newly introduced Income Tax Bill, tabled in Parliament in February.
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