Wait, no need to file tax returns on July 31; new due date is Sept 15

The Income Tax department on Tuesday extended the due date for filing returns for Assessment Year 2025-26 to September 15 from July 31.

This means individuals, Hindu Undivided Families, and entities that do not need to get their accounts audited can file their I-T returns (ITR) for income earned in the 2024-25 financial year by September 15. This was done to prepare Income Tax systems to incorporate changes in ITR forms and roll out the utilities.

This year, ITR forms for AY26 were notified in late April and early May against the practice of notifying them in January/February. 

The notified ITRs for AY2025-26 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,  the Central Board of Direct Taxes (CBDT) said in a statement.

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 an extension, the statement said.

The government has notified the income tax return forms 1 and 4, filed by individuals, HUFs and entities with total income up to ₹50 lakh a year and who do not have to get their accounts audited, for the assessment year 2025-26 on April 29.

Now, entities with long-term capital gains of up to ₹1.25 lakh from listed equities can show such income in ITR 1 and 4. Earlier, they were required to file ITR-2.

The government has also made certain changes in the form regarding deductions claimed under 80C, 80GG, and other sections and has provided a drop-down menu in the utility for tax filers to select from. Also, assessees will have to furnish section-wise details regarding TDS deductions in the ITR.

Under the I-T law, LTCG of up to ₹1.25 lakh from the sale of listed shares and mutual funds are exempt from tax. Gains exceeding ₹1.25 lakh/ annum are subject to 12.5 per cent tax.

Usually, the ITR forms are notified before the end of the fiscal, mostly around January/February. This time, however, the ITR forms and the filing utility got delayed as revenue department officials were preoccupied with the new Income Tax Bill, which was introduced in Parliament in February.
(With PTI inputs)