ITR deadline on September 15: Why everyone is pushing for a tax return filing extension

ITR filing 2025 deadline: The Income Tax Department had already given taxpayers extra time by extending the last date for filing Income Tax Returns (ITR) for FY 2024–25 (AY 2025–26) to September 15, 2025, from the original deadline of July 31. This extension applies to individuals and non-audit cases. Yet, with the new date just around the corner, pressure is building on both taxpayers and professionals. As of September 8, the Income Tax portal showed that about five crore ITRs had been filed, out of which 4.72 crore were verified and 3.39 crore processed. Last year, however, filings reached 7.28 crore by the deadline, leaving a significant gap this year. With nearly three crore returns still pending, the call for an extension is growing louder.

Why CAs, professionals seek more time

Many chartered accountants and trade associations argue that the late release of ITR utilities has squeezed preparation time. Key utilities were released only in June and July, leaving taxpayers with compressed timelines:

29 May 2025 – ITR-1, ITR-4 excel utilities

4 June 2025 – ITR-1, ITR-4 online utilities

11 July 2025 – ITR-2, ITR-3 excel utilities

17 July 2025 – ITR-2 online utility

30 July 2025 – ITR-3 offline and online utility

8 August 2025 – ITR-5 excel utility

14 August 2025 – ITR-6 excel utility

Professional bodies such as the Federation of Karnataka Chambers of Commerce & Industry (FKCCI), Chartered Accountants Association Surat (CAAS), and the Bombay Chartered Accountants’ Society (BCAS) have written to the CBDT highlighting portal glitches, mismatches in AIS/TIS/26AS data, and the heavy compliance burden. Similar representations came from the Tax Bar Association Bhilwara, CCATAX, GCCI, and even the BJP Chartered Accountants Cell in Pimpri-Chinchwad.

But taxpayers should note that as of September 9, 2025, the current ITR filing deadline for non-audit cases is September 15, while the tax audit report is due by September 30, and the ITR for audit cases by October 31, 2025. Many professionals argue that handling audit and non-audit workloads back-to-back without additional relief is unrealistic.

Differing opinions

Not all experts believe an extension is justified. According to Dinkar Sharma, Company Secretary and Partner at Jotwani Associates, compliance is tracking last year’s pace: “More than 5 crore ITRs were filed by 8 September, and around 3 crore more are expected by the deadline. This trajectory mirrors last year, making it unlikely that the government will find sufficient grounds to extend.”

He also warned that frequent extensions undermine timely filing discipline and disrupt tax administration schedules for assessments, audits, and refunds.

On the other hand, tax consultant Matthew Dsouza wrote on X: "If Income Tax Dept can’t extend due dates despite their own delays, why do they need 1+ year to process returns? Taxpayers pay late fees, but no penalty on govt for late refunds. Accountability must be two-way."

Senior advisor Manish Kumar noted that taxpayers are still anxious, with millions yet to file, and many hope the department will reconsider another extension given delays in utilities and data mismatches.

Risks of waiting for an extension

Experts caution taxpayers against banking on an extension. Filing late can trigger penalties under Section 234F of up to Rs 5,000, plus interest under Sections 234A, 234B, and 234C on unpaid taxes.

Late filers also lose critical benefits, such as the ability to carry forward losses on capital gains or business income to offset future profits. These missed opportunities could increase tax liabilities in subsequent years.

Finally, last-minute filing risks technical bottlenecks. Even with system upgrades, the massive traffic of several lakh filings within hours can lead to login failures, slowed processing, or incomplete submissions.

With five crore returns already filed and millions more pending, the debate over extending the ITR filing deadline continues. While taxpayers and professionals highlight genuine hurdles like late form releases and portal glitches, the government appears focused on maintaining discipline in compliance timelines. For individuals, the safest course remains clear: file early, avoid penalties, and secure the full benefits of timely tax compliance.