As the new financial year is in motion, the number of individuals who are eager to file their income tax returns (ITR) has significantly increased. They want to be the first to report their financial details for India. In support of the taxpayers, the government has announced a postponement of the filing last date for the financial year 2024-25 (assessment year 2025-26). Though everyone will certainly appreciate their extra time, they need to understand the scope, nature, reasons, and who is entitled to this extension apart from that they should not wait until the deadline expires. Chartered Accountant Gaurav Kumar explains the updated details of tax reporting and also reveals a few tips for you to be stress free and save yourself from paying heavy penalties.

July 31, 2025, was the last day to file ITR for the individuals who are not required to maintain their audit accounts. The government has increased the deadline till September 15, 2025, in order to allow the filing to continue in spite of the late release of forms, glitches in the portal, and requests from various industries. It is now possible for employees, freelancers, as well as non-audit small businesses to file their Income Tax Returns (ITR) six weeks after the last date of the current year. An alternate Due date for audit is October 31, 2025 is.

Still, it is only untill the tax paying deadine that has been changed (unless it was extended) that the return filing final date has been postponed while this is the case. If you had pending self-assessment tax or advance amount dues, they were still supposed to be cleared by July 31, 2025. Missing this payment can lead to interest charges under Section 234A/B/C, along with that you may also get a notice for non-payment of tax and then you will have to bear the cost of time in sorting through the hassle and so on even if you file your return by the extended deadline.

According to CA Gaurav Kumar this is a very important consideration that people should not overlook. “There are a lot of taxpayers who think that the deadline extension talked about in the news is only about an overall financial impact if they deferred everything,” he points out. “What actually happens is that, as a direct result of their postponing the payment of tax dues, they end up incurring extra charges which in fact they could have avoided easily by making the payment on time.”

There were several factors that contributed to the extension. One of the reasons was that the ITR utilities and forms were not ready on time for this year, leaving very little time for individuals as well as professionals to file accurate returns. Besides, some regions have suffered from natural disasters and technical issues. It has become difficult to tick off the obligation of timely filing in these areas due to that. The petition for the government to give room for these dilemmas was made by the tax practitioners and business associations and this extension provides that breathing space for them to stagger the conditions.

Nevertheless, CA Gaurav Kumar says that the taxpayers who get the news of the last date being extended until September 15 should not take it as a ray of light for a late filing. “We always say the closer the deadline, the slower the portal and that is when people get nervous and make mistakes. You get time to check, correct mistakes, and confirm that all the data you have filled in your ITR matches the AIS and Form 26AS if you file early.”

Here are the steps that the taxpayers should follow without delay to benefit from this extension to the maximum:

1. Get Your Documents Ready in Advance – Get together your Form 16, TDS certificates, bank statements, and investment proofs now instead of waiting.
2. Cross-Check AIS and Form 26AS – Look for discrepancies in these statements to steer clear of surprises at a later stage.
3. Identify the Right ITR Form – Be it ITR-1, ITR-2, or any other, the fundamental step to non-violation of the law is picking the correct form.
4. Settle Your Tax Liabilities – Pay your dues even before filing so as to stay away from the unnecessary interest and penalties.
5. Accurately E-File – The official e-filing portal or offline utility tools can be used for ensuring the correctness of the work.
6. Have Evidence Available – If you had unusual events like natural disasters or technical failures, you should always keep your documents in case you want to ask for help later.

Not filing in time, that is before the 15th of September, may lead to the imposition of late filing penalties under Section 234F, the amount of which can be up to ₹5,000. In addition, a delayed filing you may not be able to utilize the losses to carry forward or claim the deductions.

Such a time extension is indeed a move in the right direction for the taxpayers, though it also serves as a reminder that tax compliance is a continuous cycle. Through proper planning and taking the initiative early, you can refrain from the last-minute run and keep your finances going well. CA Gaurav Kumar recommends that everyone should make good use of this additional time and not just wait for another extension which may not arrive.