The Countdown is On: CBDT Unlikely to Extend ITR Filing Deadline

With the final hours of the Income Tax Return (ITR) filing deadline for Assessment Year (AY) 2025-26 upon us, the Central Board of Direct Taxes (CBDT) appears firm on its decision not to grant a further extension. The current deadline for non-audit taxpayers, which includes most salaried individuals and Hindu Undivided Families (HUFs), is today, September 15, 2025. While demands for an extension from various tax professional bodies and associations have been mounting, the Income Tax Department has publicly clarified that such rumors are fake and the deadline remains unchanged.

The Call for an Extension: Why Taxpayers and Professionals are Demanding More Time

Despite the CBDT having already extended the original July 31st deadline to September 15th, a strong case has been made by several organizations, including the Chandigarh Chartered Accountants Taxation Association (CCATAX) and the Advocates Tax Bar Association (ATBA), for a further extension. Their arguments are rooted in several persistent issues that have plagued the filing process this year:

• Persistent Portal Glitches: Taxpayers and professionals continue to report technical issues on the e-filing portal, such as slow response times, server crashes, session timeouts, and validation errors. These glitches make the process of filing returns cumbersome and time-consuming, especially during the peak rush.
• Delayed Utilities and Forms: The late release of ITR forms and utilities for various assessment years, including Forms 3CA/3CB-3CD and ITR-5, ITR-6, and ITR-7, has significantly compressed the time window for compliance. This has created a severe bottleneck for tax professionals who need to reconcile and process a large volume of returns in a short period.
• Data Mismatches: Discrepancies in pre-filled data, particularly in the Annual Information Statement (AIS) and Form 26AS, have been a major point of contention. Taxpayers and professionals are spending extra time and effort reconciling these mismatches, further slowing down the filing process.
• Natural Calamities and Festivals: Severe weather events like heavy rains and flooding in various parts of the country have caused power outages and internet disruptions, making it nearly impossible for many to file on time. Additionally, the month of September coincides with major festivals, which reduces the available working days for professionals.

CBDT’s Stance and the Consequences of Missing the Deadline

The Income Tax Department has been unequivocal in its stance, using its official social media channels to debunk fake news about a deadline extension. It has advised taxpayers to rely solely on official notifications. The department has also highlighted that its helpdesk is operating on a 24×7 basis to assist taxpayers with filing.

For taxpayers who miss the September 15th deadline, there are significant financial and legal consequences:

• Late Filing Fee: A late fee of ₹5,000 is applicable for returns filed after the due date. This is reduced to ₹1,000 for those with a total income not exceeding ₹5 lakh. This penalty is levied under Section 234F of the Income Tax Act.
• Interest on Tax Dues: Interest at a rate of 1% per month or part of a month will be charged on any unpaid tax amount from the due date until the tax is paid, under Section 234A.
• Loss of Benefits: Filing a belated return means you lose the ability to carry forward certain losses, such as business losses or capital losses, to subsequent years.
• No Tax Regime Switching: Taxpayers who fail to file their original return by the deadline cannot switch between the old and new tax regimes in their belated return. The new tax regime becomes the default choice, and the option to switch to the old regime is lost.

Expert Advice: Don’t Wait, File Now

With the clock ticking down, tax experts and professionals are unanimously advising taxpayers to file their returns immediately to avoid the last-minute rush and potential penalties. While the demand for an extension is understandable given the challenges faced, the CBDT’s clear communication suggests that no further grace period will be provided. Taxpayers who have all their documents in order should file without delay, as the e-filing portal is likely to be under immense pressure in the final hours. For those who can’t file on time, it’s crucial to be aware of the penalties and interest that will apply. The deadline for filing belated returns for the current assessment year is December 31, 2025.