Govt Extends ITR Filing Deadline for AY 2025-26, But Only 4.56 Crore Returns Filed So Far

The government has officially extended the ITR filing deadline for Assessment Year 2025-26 to September 15, 2025, but as of now, only 4.56 crore returns have been filed, highlighting a slower pace than expected this tax season. Despite the extra time, millions of taxpayers are yet to complete the process, raising concerns over compliance and timely refund issuance.

Extension of Deadline: Background

Initially, the ITR filing deadline for AY 2025-26 was July 31, but authorities extended it by 46 days, responding to technical and operational challenges in the new e-filing systems. This change allowed taxpayers whose accounts are not subject to audit more flexibility in completing their returns, while those requiring an audit have until October 31, 2025, to file.

Latest Filing Data: Sluggish Numbers

By September 4, official figures confirm that more than 4.56 crore returns have been filed, with over 4.33 crore e-verified. However, processing has lagged, with only about 3.17 crore ITRs fully processed so far. Roughly 3 crore taxpayers are expected to submit returns in the last 11 days leading up to the new ITR filing deadline, underscoring the tendency for last-minute rushes.

Who Needs to File by September 15?

The September 15 ITR filing deadline is crucial for individuals, Hindu Undivided Families, and entities that do not require their accounts to be audited. Businesses or professionals whose accounts must be audited have different deadlines. Failure to file by the specified deadline leads to financial penalties—up to ₹5,000 for belated filings—and interest charges at 1% per month on outstanding tax dues. These consequences underscore the importance of adhering to the revised timeline.

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Reasons Behind the Extension

The government cited various reasons when announcing the ITR filing deadline extension. Substantial updates in the ITR forms and utilities, system integration delays, technical glitches, and operational readiness were factors behind the decision. By providing extra time, authorities aim to facilitate a smoother and more convenient tax return process for millions of users coping with new procedures and technological changes.

Future Possibility of Further Extensions

Another change in the ITR filing deadline is unlikely, but not impossible. The final decision will hinge on how return submission rates compare to last year’s numbers and whether any technical issues create bottlenecks for taxpayers. Last year, 7.28 crore returns were filed by July 31 for AY 2024-25, with the peak occurring in the final days before the deadline. If the current year does not see comparable figures, policymakers might consider additional assistance.

What Should Taxpayers Do Now?

With the ITR filing deadline just days away, taxpayers are urged to act swiftly. Delaying until the last moment risks encountering technical issues on the e-filing portal, can cause penalties, and may slow refund processing. Ensuring timely and accurate filing mitigates hassles and financial risks, especially as portal traffic surges during the closing days.

In summary, the extended ITR filing deadline offers more time, but the slower pace of filings makes prompt compliance essential for taxpayers seeking to avoid penalties and ensure quick refunds.

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