ITR Filing FY 2024-25: What is the Deadline for Income Tax Returns & Will it be Extended? Know Penalty for Late Filing

The clock is ticking for millions of Indian taxpayers as the September 15, 2025 deadline for filing Income Tax Returns (ITR) for FY 2024-25 (Assessment Year 2025-26) rapidly approaches. With widespread calls from tax professionals and concerns about portal glitches, taxpayers are anxiously wondering whether the government will grant another extension and what consequences await those who miss the deadline.

Current ITR Filing Deadline: September 15, 2025

The Central Board of Direct Taxes (CBDT) has set September 15, 2025, as the final deadline for filing ITRs for most taxpayers. This represents a significant extension from the original deadline of July 31, 2025, granted in May to address various systemic challenges.

Who Benefits from the September 15 Deadline

The extended deadline applies to:

• Individual taxpayers (salaried employees, pensioners)
• Hindu Undivided Families (HUFs)
• Association of Persons (AOPs)
• Body of Individuals (BOIs)
• Private Limited Companies (non-audit cases)
• LLPs and Partnerships (non-audit cases)
• One Person Companies (non-audit cases)

Also Read: Taxability of Rights Entitlements Under India–Saudi Arabia DTAA

Deadlines for Other Categories

Audit Cases Remain Unchanged:

• Businesses requiring audit: October 31, 2025
• Transfer pricing cases: November 30, 2025
• Revised returns: December 31, 2025
• Belated returns: December 31, 2025

Reasons Behind the Original Extension

The CBDT extended the deadline from July 31 to September 15 due to several critical factors:

Major ITR Form Revisions

The ITR forms for AY 2025-26 underwent substantial structural and content-level changes aimed at simplifying compliance, improving transparency, and enabling more accurate reporting. These extensive revisions required additional time for system development, integration, and comprehensive testing of related utilities.
Also Read: Section 28 of the Income Tax Act 1961: Complete Guide to Business and Professional Income Taxation

Delayed Release of ITR Utilities

ITR utilities were released much later than usual:

• ITR-2 and ITR-3: Released on July 11, 2025 (much later than typical April release)
• ITR-5, ITR-6, and ITR-7: Released only in August 2025
• ITR-5: Released as late as August 8, 2025

This delayed rollout meant taxpayers had insufficient time to familiarize themselves with the new forms and complete accurate filings.

TDS Credit Delays

TDS credits from statements filed by May 31, 2025, were expected to reflect only from early June, leaving taxpayers with a very short window for accurate return filing under the original July 31 deadline.
Also Read: Crypto Tax Net: Your Chill Guide to the 30% Tax, 1% TDS & New GST Stuff

Will the Deadline be Extended Again?

As of September 11, 2025, there is mounting pressure from various stakeholders for another extension, but the government has not indicated any willingness to grant further relief.

Current Filing Statistics Raise Concerns

Only 5 crore returns have been filed out of an estimated 8+ crore expected filings, compared to 7.28 crore filed by July 31 in the previous year. This represents a significant shortfall with just days remaining before the deadline.

Professional Bodies Demand Extension

The Gujarat Chamber of Commerce & Industry (GCCI) formally requested an extension in August 2025, citing multiple genuine challenges:

Technical Issues Plaguing the Portal:

• System errors during ITR and Form 3CD uploads
• Discrepancies in Form 26AS, AIS, and TIS data
• Performance issues during peak traffic periods
• Utility compatibility problems

Compressed Filing Window: Tax professionals argue that the effective compliance window has been only 2 months instead of the usual 4 months, due to late utility releases.
Also Read: Capital Gains Tax in India: The Ultimate Guide for Everyday Investors

Government's Stance

The Finance Ministry issued a fresh reminder on September 7, 2025, strongly indicating the deadline will not be extended further. The notice emphasized that a 45-day extension has already been granted and stressed the importance of meeting the September 15 deadline.

Severe Penalties for Missing the Deadline

Taxpayers who fail to file by September 15, 2025, will face significant financial consequences under multiple sections of the Income Tax Act.

Late Filing Fee Under Section 234F

The penalty structure for late filing is:

Annual Taxable Income	Late Filing Fee
Up to ₹5 lakhs	₹1,000
Above ₹5 lakhs	₹5,000

This penalty applies if you file between September 16 and December 31, 2025. The government reduced the maximum penalty from ₹10,000 to ₹5,000 from FY 2021-22 onwards as relief for taxpayers.
Also Read: Complete Guide to Tax Deducted at Source (TDS) in India: Sections 194C, 194J, and 194H for FY 2025-26

Interest Under Section 234A

In addition to the late filing fee, interest at 1% per month is charged on any unpaid tax amount from the original due date. This interest compounds monthly and can substantially increase your tax liability.

Interest Calculation Example:

• If you owe ₹1 lakh in taxes and file 3 months late
• Interest = ₹1 lakh × 1% × 3 months = ₹3,000
• Total liability = ₹1 lakh + ₹3,000 = ₹1.03 lakh

Loss of Carry Forward Benefits

Filing after the deadline results in the loss of certain benefits:

• Carry forward of losses: You cannot carry forward business losses, capital losses, or unabsorbed depreciation to future years
• Interest on refunds: You may lose interest on any tax refunds due

Also Read: Goods and Services Tax (GST) in India A Complete Guide for Businesses and Individuals

Belated Return Filing Window

If you miss September 15, you can still file a belated return until December 31, 2025. However, this attracts the penalties mentioned above and results in loss of certain benefits.

Current Portal Issues Affecting Filing

Multiple technical issues are hampering smooth ITR filing as the deadline approaches:

System Upload Errors

Taxpayers are encountering frequent system failures while uploading ITRs and Form 3CD. These errors often occur without clear indication of the root cause, forcing repeated submission attempts.

Data Discrepancies

Significant mismatches exist in Form 26AS, Annual Information Statement (AIS), and Taxpayer Information Summary (TIS). Instances have been reported where AIS and TIS data for the same PAN differ when downloaded simultaneously.

Performance Issues

During peak filing periods, the portal experiences:

• Slow page loading
• Session timeouts
• Login failures
• High traffic-induced delays

Also Read: Section 194C of Income Tax Act: A Comprehensive Guide to TDS on Contractor Payments

Utility Compatibility Problems

Released filing utilities sometimes lack compatibility with updated system environments, resulting in multiple fixes and updated versions being released after initial launch.

Strategic Actions for Taxpayers

Immediate Steps to Take

If You Haven't Filed Yet:

1. Don't wait until the last minute - Start filing immediately to avoid portal congestion
2. Use off-peak hours - File early morning or late evening to avoid traffic issues
3. Keep all documents ready - Ensure Form 16, investment proofs, and bank statements are organized
4. Double-check calculations - Verify all entries to avoid revision requirements later

If Facing Portal Issues:

1. Try multiple times - Portal issues are often intermittent
2. Use different browsers - Switch between Chrome, Firefox, or Edge if facing problems
3. Clear cache and cookies - Technical glitches sometimes resolve with browser cleanup
4. File during off-peak hours - Early morning (6-8 AM) or late evening typically have less traffic

Also Read: FEMA Act Case Study 2: Understanding Foreign Exchange Compliance Through Real-World Scenarios

Professional Assistance

Consider seeking professional help if you have:

• Complex investment portfolios
• Multiple income sources
• Capital gains transactions
• Business or rental income
• Foreign assets or income

Filing Statistics and Trends

Current Filing Status

As of September 8, 2025:

• Total registered users: 13.37 crore
• Returns filed: 5 crore
• Returns verified: 4.72 crore
• Returns processed: 3.39 crore

Historical Comparison

The current filing pace is significantly slower than previous years:

• AY 2024-25: 7.28 crore filed by July 31, 2024
• AY 2023-24: 6.77 crore filed by July 31, 2023
• Growth rate: 7.5% year-on-year increase in previous year

Also Read: Set-Off and Carryforward Under Income Tax Act: Complete Guide 2025

What Happens After Missing All Deadlines

If you fail to file even a belated return by December 31, 2025:

• You cannot file a return voluntarily
• The Income Tax Department may issue notices under various sections
• Assessment can be completed based on available information
• Higher penalties and prosecution may apply
• Loss of legal standing to claim refunds or carry forward losses

Regional and Weather-Related Challenges

CA professionals have noted that regional disruptions could prompt localized extensions. Factors like inclement weather, natural disasters, or significant infrastructure issues in specific regions might lead to area-specific deadline extensions, though these would be announced separately.

Key Takeaways for Taxpayers

The September 15, 2025 deadline appears firm, with the government showing no inclination to grant another extension despite professional requests and technical challenges. Taxpayers must prioritize filing immediately rather than waiting for a potential extension that may never come.

Financial consequences of missing the deadline are substantial, including penalties up to ₹5,000, monthly interest charges, and permanent loss of certain tax benefits. The longer you delay, the higher your financial burden becomes.

Given the portal issues and compressed filing window, taxpayers should start the filing process immediately, seek professional help for complex cases, and avoid the last-minute rush that could lead to errors or failed submissions.

The government's emphasis on digital compliance and the significant changes in ITR forms for AY 2025-26 underscore the importance of timely and accurate filing. With just days remaining before the deadline, immediate action is crucial to avoid penalties and ensure compliance with India's evolving tax framework.