By Kavita Iyer 
New Delhi, August 15: For millions of individual taxpayers and small business owners, the annual scramble to file Income Tax Returns just got a much-needed breather. The Central Board of Direct Taxes (CBDT) has pushed the due date for non-audit taxpayers for the 2024–25 financial year to 15 September 2025, a move that has been welcomed by professionals but also stirred debate over its knock-on effects on government cash flows.
Non-Audit Filers Get Breathing Space
The original deadline of 31 July 2025 had been hanging like a sword over individual earners, Hindu Undivided Families (HUFs), and small entities not subject to audit requirements. On 27 May, through Circular No. 06/2025, the CBDT invoked its powers under Section 119 of the Income-tax Act to extend the date by 46 days.
The reasons were far from cosmetic. Multiple tax consultancy reports, including from KPMG and CAalley, have pointed to a combination of delayed utility releases for the new ITR forms, structural changes in the forms themselves, and a backlog in reflecting TDS credits from statements that were due only by 31 May. For filers dependent on accurate pre-filled data, this delay would have shrunk the real filing window to just a few weeks.
Other Deadlines Hold Firm
Interestingly enough, while the CBDT showed leniency to non-audit taxpayers, it has not altered the calendar for those with audit obligations. Audit reports must still be filed by 30 September 2025, and corresponding ITRs by 31 October. Transfer pricing cases under Section 92E retain their 30 November deadline, and those needing to file belated or revised returns have until 31 December.
The recently introduced “updated return” window, which allows filings up to 48 months late but with penalties, will run from 1 April 2026 to 31 March 2030.
Push From the Ground
It was not just back-office software delays that swayed the decision. Business bodies like the Gujarat Chamber of Commerce and Industry (GCCI) had made formal representations to the government, warning that the compression of the filing cycle was causing avoidable compliance stress. GCCI also hinted at the risk of error-ridden filings if taxpayers were rushed, which would only increase the burden of rectifications later.
Why It Matters
For what it’s worth, this extension isn’t a free pass. Missing the 15 September cut-off will still trigger late fees under Section 234F, starting at ₹1,000 and going up to ₹5,000 for most taxpayers. In addition, interest under Sections 234A, 234B, and 234C could start ticking the moment tax dues are unpaid beyond their respective timelines.
There’s another dimension here: by prolonging the filing season, the government also delays its ability to reconcile tax collections. This can force the Income Tax Department to pay higher interest on refunds, a prospect flagged by ET Wealth and The Times of India. While that’s good news for taxpayers expecting refunds, it’s an extra cost to the exchequer.
Practical Advice From Experts
Tax professionals are unanimous in advising filers to use the additional time for accuracy rather than procrastination. Pre-filled forms, now a standard feature, can ease the process but still require cross-verification against bank interest statements, capital gains reports, and other income details.
As one Mumbai-based chartered accountant told The Economic Times, “The relief is real, but it’s still a deadline. Last-minute rushing will only undo the benefit of this extension.”
The Road Ahead
With only a month left until the new deadline, the focus will shift to whether this extension actually smoothens the filing process or merely delays the inevitable year-end rush. The tax portal has a history of slowing under load, and if September sees a flood of filings, the complaints may be no different from July’s.
Still, for now, taxpayers have bought themselves a little time and in the annual ritual of Indian tax compliance, that’s no small thing.
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Former financial consultant turned journalist, reporting on markets, industry trends, and economic policy.
- Kavita Iyerhttps://hindustanherald.in/authors/kavita/
- Kavita Iyerhttps://hindustanherald.in/authors/kavita/
- Kavita Iyerhttps://hindustanherald.in/authors/kavita/
