Relief has been given to the taxpayers by the Income Tax Department wherein some time has been given in filing the Income Tax Returns (ITRs) of the financial year 2024-25. The subsequent deadline of non-audit cases has been moved to September 15, 2025, instead of the previous one, that of July 31, 2025. The extension will offer more time to individual taxpayers and small-scale businesses to arrange records, resolve balancing cases and accurately file their returns.
One should understand, nevertheless, that although the filing deadline will be extended, any self-assessment tax obligations will have to be paid by July 31, 2025. Otherwise, there could be implications under section 234A that might cause one to pay interest resulting in a penalty.
Late filing penalties still apply
Taxpayers are strongly advised to file within the new deadline to avoid penalties. If returns are filed after September 15, 2025, the following late filing penalties will apply under Section 234F:
- ₹5,000 for those with taxable income above ₹5 lakh
- ₹1,000 for those with income below ₹5 lakh
Additionally, the last date for filing belated or revised returns has been set as December 31, 2025, and updated returns can be filed until March 31, 2030, under Section 139(8A), if necessary.
Why the deadline was extended
The decision to extend the filing deadline was made due to several technical and administrative delays:
Late release of updated ITR forms and e-filing utilities
Delayed reporting of Tax Deducted at Source (TDS) entries in Form 26AS and the Annual Information Statement (AIS)
Limited availability of updated offline utilities for taxpayers preferring manual or assisted filing
To make the process easier, the Income Tax Department has launched a new **Excel-based offline utility for ITR-1 and ITR-4, allowing users to create and upload JSON files with greater convenience.
Refund and interest consideration
Those expecting a tax refund should note that interest under Section 244A accrues from April 1 of the assessment year, irrespective of the filing date. Taxpayers could earn up to 33% interest annually on delayed refunds, depending on when they file. However, this interest is taxable and must be declared in the ITR.
ITR filing checklist: What to keep ready
To ensure smooth and error-free filing, here’s a checklist of what you should prepare before starting your ITR process:
1. PAN, Aadhaar and Bank Details
Make sure your PAN is connected with Aadhaar and your bank account gets pre-validated, so the refunds are faster.
2. Form 16
In case you are a salaried worker, avail form 16 at the office of your employer to know about salary and TDS information.
3. Form 26AS and AIS
Verify the tax deducted and any other monetary dealings using form 26AS and the Annual Information Statement (AIS).
4. Interest Certificates
Add interest received on savings bank accounts, FD or any other bank or NBFC fixed deposits.
5. Capital Gains Details
Maintain records of sale of stocks, mutual funds or real estate. Cost of acquisition, improvement and transaction fees.
6. Rental Income and Property Details
In case you own a second house or get a house rent income, make an accurate income with a mention of municipal taxes and interest on home loan (paid or not).
7. Proofs of Investment
The documents for to tax-saving investments under Section 80C, 80D, or 80G (LIC, PPF, health insurance, donations, etc.) must be kept ready for any verification.
8. Business or Freelance Income Details
If you are self-employed or a freelancer, be sure to track all your profit and loss statements.
9. Foreign Assets and Income
If your income originates from foreign, disclose the same along with bank accounts, or assets as required under Schedule FA.
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