Low Chances of ITR Due Date Extension: Avoid Late Fees and Penalties by Acting Now

The deadline for filing Income Tax Returns (ITR) is approaching soon, and taxpayers were given an extended filing window of 1.5 months, However they are still requesting the Finance Ministry for further extensions due to multiple delays in the release of ITR forms and ongoing technical issues.

However, as of now, no further extension has been announced. Taxpayers must file their returns by September 15, 2025 to avoid penalties and consequences; they still have a chance to file a delayed return by December 31, 2025, for the financial year 2024-25 and assessment year 2025-26.

However, taxpayers are permitted to file delayed ITR till the year end, but these delayed filings will attract penalties (Between Rs. 1,000 and Rs. 5,000) depending on the duration of delay. For individuals with an income above Rs. 5 lakh, filing a belated return will attract a penalty of up to Rs. 5,000. And for taxpayers with a net taxable income of Rs. 5 lakhs or lower, the maximum penalty for filing a belated ITR is Rs. 1,000. Any outstanding tax dues will also incur interest at a rate of 1% per month.

The official Due date

Earlier the official due date for income tax returns was July 31. However, it was extended to September 15, 2025 in order to ease compliance for most taxpayers. According to the official income tax website’s tax calendar all salaried employees, pensioners and other entities should fill in and submit their details by this deadline in order to avoid penalties and other consequences.

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BCAS Urges Finance Minister to Extend ITR and Audit Due Dates for AY 2025-26

Who must file a tax return now?

  1. Individuals and entities whose accounts do not require audit should file their income tax return by September 15. This includes:
    • Salaried employees and experts with income upto Rs 50 lakh (who do not fall under the audit requirement)
    • Taxpayers who meet the mentioned criteria, such as
      • Spending Rs 2 lakh or more on foreign travel
      • Paying more than Rs 1 lakh for electricity expenses
      • Depositing Rs 1 crore or more in current accounts
      • Having a professional income above Rs 10 lakh
  2. Individuals who have TDS or TCS exceeding Rs 25,000 and Rs 50,000 for senior citizens
  3. Resident taxpayers with foreign assets or getting benefits from foreign assets.