ITR filing woes: I-T dept issues fresh reminder to file returns; CAs, experts raise multiple concerns

The Finance Ministry has issued a fresh reminder about the Income Tax Return (ITR) filing deadline for the financial year 2024–25 (assessment year 2025–26), set for September 15, 2025. The notice, released on September 7, provides detailed guidance for taxpayers of different categories and indicates that the deadline may not be extended further for individuals and entities whose accounts do not require audit.

Earlier, to provide taxpayers more time to meet compliance requirements, the government had extended the original deadline from July 31, 2025, to September 15, 2025. Given that a 45-day extension has already been granted, authorities are unlikely to offer additional relief.

In its official communication, the Finance Ministry emphasized that filing an ITR is a key compliance obligation under the Income Tax Act. Timely filing allows taxpayers to declare income, report taxes paid, claim refunds, and maintain official financial records essential for loans, visas, and other financial transactions. The notice also highlighted the risk of penalties for missing the deadline.

Delays and hurdles

Tax experts suggest that the government is determined to stick to the September 15 deadline, despite delays in the release of forms and utilities, mismatches in AIS, TIS, and 26AS reconciliations, and portal performance issues. Chartered Accountant Himank Singla highlighted the challenges faced by professionals on social media, noting delayed ITR utilities, persistent technical errors, and multiple deadlines compressed into September. He and other experts have appealed for extensions, suggesting October 15 for non-audit ITRs, December 31 for audit cases, and January 31, 2026, for GST 9/9C filings.

Chartered Accountant Shweta Jain Patil also commented on X, emphasizing the challenges for taxpayers and professionals:
"Dear Income Tax @IncomeTaxIndia, professionals are working tirelessly for quality compliance. ITR forms were released late & deadline pushed to 15.09.25 without considering clash with GSTR filings & Tax Audit due dates. On top of that, portal glitches are all-time high. We seek only a fair & practical extension."

ITR filing statistics

According to official Income Tax Department data updated on September 8, 2025, out of 13.37 crore registered individual users for AY 2025–26, around 5 crore returns have been filed, with 4.72 crore verified and over 3.39 crore processed.

Historical data reflects growing adoption of digital compliance: for AY 2024–25, 7.28 crore ITRs were filed by July 31, 2024, up from 6.77 crore in AY 2023–24, marking a 7.5% year-on-year increase. This growth points to a widening tax base, rising digital adoption, and a larger share of first-time filers opting for the New Tax Regime.

Regional challenges

CA Kinjal Bhuta noted that regional disruptions—including delayed ITR utilities and inclement weather—could prompt localized extensions. She emphasized that any deadline extension should be announced well in advance to be meaningful, rather than at the last minute.

She said: "The ITR utilities for ITR forms were delayed and in a staggered manner, which reduced the tax filing season duration considerably. To top that, the recent inclement weather made ITR filing difficult in several states. So, there may be a deadline extension or there may be regional extension. If the government is planning to extend the deadline, it may do it well in advance, as extending it on the eve of the due date doesn't serve any rightful purpose."

Late filing fees and interest

Taxpayers who miss the deadline are liable for a late filing fee of Rs 5,000, capped at Rs 1,000 if total income is below Rs 5 lakh. In addition, the Income Tax Department levies 1% monthly interest on any outstanding tax, calculated on a part-month basis.

The September 15 deadline underscores the importance of timely compliance for both taxpayers and the wider financial ecosystem. With increasing digital adoption and a growing number of first-time filers, meeting ITR obligations promptly helps avoid penalties, ensures faster refunds, and maintains financial credibility. While regional extensions may be considered in exceptional circumstances, taxpayers are advised to complete their filings as soon as possible to minimize risk.