Extended Tax Deadlines for AY 2025-26: What's Changed and What's Next

Filing Income Tax Returns (ITRs) on time is not just about following rules. It helps you avoid penalties, late fees, and unnecessary stress. However, deadlines can change when the government decides to give taxpayers a bit more time. For Assessment Year (AY) 2025-26, the Central Board of Direct Taxes (CBDT) has pushed back the due dates for filing ITRs and tax audit reports. Here’s what you need to know.

Why the Extension Was Announced

The ITR forms and filing tools for FY 2024-25 came out later than expected. Additionally, several updates and system changes created challenges for taxpayers and professionals. Given these issues, the CBDT extended the timelines to allow people to file without rushing and making mistakes.

Extended Deadlines at a Glance

If you miss these deadlines, you can still file a late return until 31st December 2025, but you will incur late fees and interest.

Why Professionals Are Still Requesting More Time

Even with these extensions, tax professionals and industry groups think the timelines are still tight. Their main concerns are:

• Delayed availability of forms and tools: Some ITRs and tax audit formats were released much later than anticipated.
• Portal issues: Technical problems on the e-filing site, like mismatches in AIS versus Form 26AS and frequent downtime.
• Overlapping compliance: Businesses are handling GST filings, TDS requirements, and audits at the same time as ITR filing.
• Festive and holiday season: With festivals like Navratri and Dussehra coinciding with deadlines, work days get shorter.

Requests have been made to extend the due dates for audit reports to 30th November 2025 and ITR filings for audit cases to 31st December 2025, but there has been no official notification yet.

Penalties and Interest for Late Filing

If you miss the extended deadlines, here’s what happens:

Late Fee under Section 234F

• Income up to ₹5 lakh → Late fee of ₹1,000
• Income above ₹5 lakh → Late fee of ₹5,000

Interest under Section 234A

• 1% interest per month (or part of the month) on the unpaid tax amount until the date you file your return.

Loss of Certain Benefits

• You cannot carry forward losses (except for house property loss) if you miss the due date.
• Refunds will be delayed since late filings are processed after timely ones.

For example, if your net tax due is ₹20,000 and you file two months late, you’ll owe ₹400 in interest (1% × 2 months × ₹20,000) along with a late fee of ₹5,000 if your income is above ₹5 lakh.

What This Means for Taxpayers

• Non-audit individuals have until 15th September 2025, which is an extra 45 days from the original July 31 deadline.
• Audit cases should aim to complete the process by 30th September (Audit Report) and 31st October (ITR filing), unless further extensions are announced.
• Transfer Pricing cases have the longest period, stretching to 31st December 2025.
• Missed deadlines can still be addressed with late returns, but with additional costs.

Final Thoughts

While extensions provide some relief, it’s better not to wait until the last minute. Filing early leads to smoother processing and quicker refunds. Make sure you have your Form 16, AIS, Form 26AS, and investment proofs ready, and work with your CA or tax consultant in advance.

The clock is ticking. Though the CBDT has granted more time, it’s wise to stay ahead of the deadline instead of scrambling at the last moment.

Key takeaway:

• Non-audit ITR deadline: 15th September 2025
• Audit cases: 30th September (Audit Report) | 31st October (ITR Filing)
• Transfer Pricing: 30th November (Report) | 31st December (ITR Filing)
• Late filing means penalties under Sec 234F and interest under Sec 234A.

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