The CBDT press release dated May 27, 2025, highlights the following key reasons for the extension:
Major updates to ITR forms: The new ITR forms introduced for AY 2025–26 include expanded disclosure requirements, particularly around capital gains. The tax treatment varies based on whether the asset was sold before or after July 23, 2024, adding complexity to filings.
Time needed for seamless utility updates: These changes require time for integration into the income tax portal’s filing utility. The delay ensures that taxpayers can e-file accurately without errors or confusion.
Coordination with TDS timelines: TDS returns for Q4 FY 2024–25 are due by May 31, 2025, and are key to generating Form 16 and Form 26AS, which taxpayers rely on. The extension gives authorities time to ensure accurate reflection of these details.
The ITR Forms notified for the current assessment year have undergone significant changes for simplification of compliances and accuracy in disclosures and reporting.
One of the most significant changes in the form is disclosures related to capital gains, which are taxed differently based on the date of sale of the capital asset (before or after 23rd July, 2024).
These changes take significant time from the CBDT side to incorporate into the utility for seamless e-filing.
The due date for TDS filing for Q4 of FY 2024-25 is May 31st, 2025. The particulars reflected should be appropriately reflected in the important forms like Form 16 and Form 26AS.
Since the accurate reflection of data is crucial for error-free filing, the due date has been extended.
Past Trend of Due Date Extension
Previously, due to the unexpected COVID pandemic, the due dates for non-tax audit for financial year 2020-21 and 2019-20 were extended to 31st December 2021 and 10th Jan 2021, respectively, from the original due date of 31st July. Apart from that, there have not been any significant extensions in the due date for ITR filing in recent times.
“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.
In the past, also ITR due date was also extended. However, extension was only given for filing ITR and not for tax payment. Accordingly, taxpayers were expected to pay additional interest (as applicable) despite filing the return in the extended period (in case the balance tax is not paid within the original due date 31st July. For FY 2024-25),” said Mihir Ashok Tanna, Associate Director (Direct Tax), at SK Patodia & Associates LLP.
The past trend of due dates for the last 5 financial years is given below as per Clear Tax:
Similarly, eligible taxpayers are entitled to get a refund with interest u/s 244A from the end of the financial year to the date of granting the refund. Accordingly, with the extension of the due date for FY 2024-25, it is expected that eligible taxpayers are expected to get additional interest as a delay in filing ITR is likely to result in a delay in getting refunds.
“However, in the past, it was experienced that taxpayers did not receive interest for an additional period of extension, and a rectification application was required to be filed for the same. One of the reasons for the extension is to develop a system for return filing. Thus, it is expected that FY 2024-25 will not face such an issue again,” said Tanna.
The two-month breather comes as a relief, especially for those dealing with capital gains reporting and reconciliation of TDS details. It also allows chartered accountants and tax practitioners more time to manage high filing volumes. However, experts caution taxpayers not to delay until the last minute to avoid a last-minute rush and system slowdowns.
