BACKGROUND

In accordance with the provisions of section 139 of Income Tax Act, 1961 (IT Act), every person other than a company or a firm, if his total income exceeds maximum amount which is not chargeable to income-tax, is required to furnish a return of income in the prescribed form and manner on or before 31 July following the fiscal year (FY). For the purposes of furnishing particulars of income earned by a person in a FY, every year, the Central Board of Direct Taxes (CBDT) notifies Tax Return Forms (ITRs) for different classes of taxpayers.

For FY 2024-25, the CBDT has notified ITRs in the months of April and May 2025. ITRs for FY 2024-25 have undergone structural and content revisions with an aim to simplify compliance, enhance transparency, and facilitate accurate reporting. These changes have necessitated additional time for system development, integration, and testing of the corresponding utilities. Additionally, credits arising from Tax Deducted at Source (TDS) statements, which are due to be filed by 31 May 2025, are expected to start reflecting in early June 2025. This timing constraint significantly reduces the effective window available for taxpayers to file their returns, underscoring the need for an extension.

Taking note of the above, recently, the CBDT issued a Press Release¹ and Circular² stating that the deadline for filing income tax returns shall be extended from 31 July 2025 to 15 September 2025.

BDO INDIA COMMENTS

This is a welcome step by the CBDT. This extension in the due date for filing of ITRs is expected to address the concerns expressed by various stakeholders. It would provide taxpayers and professionals with sufficient time to adapt to the revised ITR formats and ensure the accuracy and integrity of the tax return filing process.