The deadline for filing Income Tax Returns (ITR) for the Assessment Year (AY) 2025-26, originally set for July 31, 2025, was officially extended to September 15, 2025. This extension was granted by the Income Tax Department due to significant revisions in the ITR forms and the need to update the filing utilities and backend systems, ensuring a smoother filing process for taxpayers. Despite widespread speculation and social media rumors about a further extension, the Department has clearly stated that September 15 is the final date for filing without penalty.

The extension has provided taxpayers, including individuals, Hindu Undivided Families (HUFs), and entities not required to undergo audit, ample additional time to comply. However, for taxpayers subject to audit, the due dates differ: October 31, 2025, for audited assessments and November 30, 2025, for those required to submit transfer pricing reports. The Department encourages taxpayers to file on time to avoid penalties, interest, and loss of tax benefits such as the ability to carry forward losses or switch tax regimes.

For those who miss the September 15 deadline, filing a belated return by December 31, 2025, remains an option; yet, this comes with a penalty—₹1,000 if income is up to ₹5 lakh and ₹5,000 if income exceeds ₹5 lakh—plus applicable interest on outstanding tax liabilities. It is critical to note that late filers lose certain benefits, including loss carry-forwards except for house property losses, which may impact tax planning and financial strategy.

In recent years, the ITR filing compliance rate has steadily increased, with over six crore returns filed by early September 2025, close to last year's figures, suggesting robust awareness and participation among taxpayers. The income tax portal and the Department's helpdesk have been proactive in providing round-the-clock support via calls, chats, and online sessions to assist taxpayers during this period. For taxpayers with investments in mutual funds or stocks generating capital gains, the choice of ITR form depends on the amount and type of gains (e.g., ITR-1 or ITR-2) and other sources of income, which should be selected carefully for accurate reporting and compliance.