ITR Filing Update (AY 2025-26)
Returns Verified: 4.42 Cr
Processed: 3.23 Cr
With the late release of utilities and flood situations impacting many regions, only this many returns have been filed so far.
Do you think the ITR Due Date should be extended to give taxpayers some breathing space?
An article on whether the ITR due date should be extended for AY 2025-26:
Should the ITR Due Date Be Extended?
With the September 15, 2025 deadline for filing Income Tax Returns (ITR) for non-audit cases fast approaching, a debate has emerged over the need for another extension. The Central Board of Direct Taxes (CBDT) has already extended the original July 31st deadline to September 15th, citing “extensive changes” to ITR forms and the need for system readiness. However, many taxpayers and professional bodies believe a further extension is necessary.
The Case for an Extension ⚖️
The primary arguments in favor of a new extension are rooted in the persistent challenges taxpayers and tax professionals face. These include:
- Late Release of Utilities: Taxpayer associations have pointed out that critical ITR utilities for different forms (like ITR-5, ITR-6, ITR-7) were released in a staggered and delayed manner, with some becoming available only in August. This has left a severely compressed timeline for compliance, forcing taxpayers and professionals to rush the process.
- Technical Issues: The e-filing portal continues to experience glitches, including server crashes, slow responses, and data mismatches between Form 26AS, Annual Information Statement (AIS), and Taxpayer Information Summary (TIS). These issues make reconciliation and accurate filing a time-consuming and frustrating experience.
- Natural Calamities: Recent flood situations and heavy rains in many regions have caused power outages and internet disruptions, making it nearly impossible for taxpayers in affected areas to file their returns on time.
- Increased Compliance Burden: New reporting requirements, such as a revised format for financial statements for non-corporate entities, and festive seasons, which reduce effective working days, have added to the workload of tax professionals, creating a pressure cooker situation.
The Counter-Argument Against Extension 🚫
While the challenges are undeniable, there are also reasons why the government might be hesitant to grant another extension. The CBDT already provided an additional 46 days with the extension to September 15th to address the initial concerns. A further delay could:
- Prolong the Filing Process: Regular extensions might encourage taxpayers to wait until the very last minute, leading to a constant cycle of last-minute rushes and system overload.
- Delay Tax Refunds: A major reason for filing ITR is to claim a refund. Delaying the deadline further would also delay the processing of returns and the issuance of refunds, impacting a large number of taxpayers. The number of unprocessed returns is already high, as shown in the image.
- Administrative Burden: While extensions provide immediate relief, they can create a long-term administrative burden on the tax department, which has to handle a concentrated filing load and manage subsequent rectifications.
Ultimately, the decision to extend the deadline will likely hinge on the pace of filings in the final days before the September 15th deadline and the severity of technical issues reported. Tax professionals and bodies are actively urging for the extension, believing it’s a necessity, not a luxury, to ensure accurate and stress-free compliance for millions of Indians.