CBDT Extends ITR Filing Deadline to 15 September Amid Major Changes in Return Forms

New Delhi: The Central Board of Direct Taxes (CBDT), a statutory body under the Department of Revenue, Ministry of Finance, has extended the deadline for filing Income Tax Returns (ITRs) for Assessment Year (AY) 2025-26 to 15 September, from the earlier due date of 31 July.

The decision for ITR filing has provided salaried taxpayers and other eligible assesses an additional 46 days to file their returns

The extension, announced by the apex direct tax body on 27 May, was attributed to substantial revisions in the structure and content of ITR forms.

“This extension will provide more time due to significant revisions in ITR forms, system development needs, and TDS credit reflections. This ensures a smoother and more accurate filing experience for everyone,” the Income Tax Department stated on social media platform X, adding that a formal notification will follow.

According to the department, the recently notified ITR forms for AY 2025-26 have been updated to simplify compliance, increase transparency and improve accuracy in reporting.

These changes require further system upgrades, integration of new utilities, and adequate testing.

Moreover, Tax Deducted at Source (TDS) statements, due by 31 May, will begin reflecting in early June, leaving a shorter effective window for ITR filing under the original timeline.

Among the major changes is a relaxation for taxpayers with long-term capital gains (LTCG) up to Rs 1.25 lakh from listed equities. Individuals in this category can now file ITR-1 (Sahaj) or ITR-4 (Sugam), instead of ITR-2, thereby reducing their compliance burden.

Additionally, the ITR forms now require capital gains to be reported separately based on whether they occurred before or after 23 July. This aligns with the Budget proposal to reduce LTCG tax on real estate to 12.5% (without indexation) for gains arising post that date.

Taxpayers who acquired properties before 23 July may still opt for the older 20% rate with indexation.

Other changes include a hike in the reporting threshold for assets and liabilities in ITR-3, from Rs 50 lakh to Rs 1 crore, easing compliance for many professionals and small business owners.

The tax department had notified all seven ITR forms for AY 2025-26 between April and May this year.

ITR-1 and ITR-4, used by a large segment of small and medium taxpayers, were notified on April 29, while ITR-7, meant for charitable institutions and trusts, was issued on 11 May.

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