Income Tax Department Extends ITR Filing Deadline: Check New Updates

It’s tax season again, but this time, taxpayers face an unusual hurdle: a delay in the notification and release of Income Tax Return (ITR) forms and their utilities. While there’s no major legislative change causing this holdup, the delay seems to stem from backend system upgrades and improved technology integrations. In this article, we cover why the forms are delayed, the potential impact on taxpayers, whether the filing deadline could be extended, and how individuals can stay prepared.

Short Summary: Income Tax Department Extends ITR Filing

Why is there a delay in notifying ITR forms and releasing utilities?

Despite no significant changes in the Finance Act 2024, the ITR forms for AY 2025-26 have been delayed. According to Akhil Chandna, Partner at Grant Thornton India, this could be because of:

• Operational and Technological Upgrades: Aligning forms with backend frameworks.
• Better Data Integration: Integrating with systems like AIS (Annual Information Statement) and TIS (Taxpayer Information Summary).
• Accuracy Testing: Ensuring the data mapped from various platforms is seamless and error-free.

The authorities are working to minimize mismatches and prevent taxpayer grievances due to incorrect pre-filled data.

Is this delay linked to changes in the tax system or backend technology?

Yes. The delay is likely connected to recent digital enhancements:

• Increased Automation: The department has improved automation to simplify tax filing.
• Seamless Data Processing: Efforts are focused on making AIS and TIS data integrate smoothly into ITR forms.
• Thorough Testing: Extensive validation of financial information is ongoing to ensure pre-filled forms are error-free.

This backend overhaul aims to make tax filing easier and more accurate in the long run.

How does this delay affect salaried taxpayers and early refunds?

The impact of the delay includes:

• Delayed Form 16 Filing: Employers issue Form 16 by mid-May, but without ITR forms, filing is impossible.
• Refund Delays: Early filers expecting quick refunds could experience a financial crunch.
• Interest Implications: Any refund delay may cause additional interest costs.

Refunds form a critical part of financial planning for many individuals. Thus, the delay can disrupt short-term financial strategies.

Historical Context: Have filing deadlines been extended before?

Historically, deadlines have been extended under specific conditions:

• Past Extensions: The CBDT has extended deadlines in case of major technical issues with the e-filing portal.
• Recent Trends: However, recent years show a focus on keeping deadlines firm to improve compliance.

If the delay stretches beyond June 2025, an extension of the July 31 filing deadline becomes a real possibility. But as of now, no official extension has been announced.

Preparations Taxpayers Should Undertake During the Delay

Taxpayers can utilize this downtime effectively:

• Gather Required Documents: Form 16, bank interest certificates, capital gains statements, rent receipts, and investment proofs.
• Review AIS and Form 26AS: Ensure correctness and get discrepancies fixed early.
• Estimate Income and Taxes: Calculate approximate tax liability for better planning.
• Update Bank Details: Ensure bank accounts are updated on the e-filing portal for smooth refund processing.

Being proactive will help taxpayers file their returns smoothly once the forms are released.

Summary of the Key Developments

Other Related Updates

Previous Year (FY 2022-23) Observations

• The July 31, 2023 deadline was not extended despite minor complaints.
• Over 7 crore taxpayers filed ITRs, with more than 7.1 crore returns verified.

Section 87A Rebate Update (January 2025)

• Forms ITR-2 and ITR-3 were updated to correctly allow rebates on short-term capital gains.
• Taxpayers previously denied Section 87A rebate can now claim it until January 15, 2025.

These updates indicate the department’s active role in promptly addressing technical issues.

FAQs About ITR Filing Deadline

1. Why are ITR forms delayed this year?

Ans. Due to backend technology upgrades and integration with AIS and TIS systems.

2. Will the July 31 filing deadline be extended?

Ans. There is no confirmation yet. Extension depends on when forms and utilities are released.

3. What should taxpayers do while waiting for the forms?

Ans. Gather necessary documents, verify AIS/Form 26AS, estimate tax liability, and update bank details.

4. How can I check for updates regarding the extension?

Ans. Visit the Income Tax Department Portal regularly for notifications.

5. Can I prepare my ITR offline even without utilities?

Ans. Yes. By collecting documents and calculating your expected tax, you can be ready to file as soon as forms are available.

6. What happens if I file my ITR late without an extension?

Ans. Late filing could attract penalties and delay in refund processing.

7. Has there been any official communication regarding the delay?

Ans. As of now, no formal statement has been issued. Experts believe it is due to backend system alignment.

8. Will my refund be delayed if I file late?

Ans. Yes. Filing late generally results in delayed refunds.

9. Is AIS checking mandatory?

Ans. It’s strongly recommended. Discrepancies can affect return filing and lead to notices later.

10. When are Form 16s usually issued by employers?

Ans. By mid-May each year. Employees should coordinate with their HR departments to collect them early.