ITR filing deadline alert:
Why Finance Ministry may not extend September 15, 2025 due date
Sep 10, 2025
Synopsis
The Finance Ministry reminds taxpayers of the September 15, 2025, ITR filing deadline, hinting no further extensions for non-audit individuals despite previous delays. Taxpayers are urged to file promptly to avoid penalties and interest on outstanding taxes. While ITR filings have increased, experts suggest potential regional extensions due to weather disruptions and delayed utility releases.
The Finance Ministry has recently issued a reminder of the Income Tax Return (ITR) filing deadline of September 15, 2025. The reminder has detailed information that the taxpayers of different categories require to file their ITR. The document dated September 7, 2025, appears to indicate that the ITR deadline may not be extended for taxpayers whose accounts does not require audit.
In order to provide taxpayers more time to fulfil their compliance requirements, the Finance Ministry has already extended the deadline for taxpayers to file their ITRs for FY 2024–25 (AY 2025–26) from July 31, 2025 to September 15, 2025.
Since it has already provided 45 days, there is a likelihood that it may not give more time now.
In its reminder sent on September 7, the Finance Ministry said that the extension of the due date for filing Income Tax Returns for FY 2024–25 (AY 2025–26) to 15 September 2025 provides additional time for taxpayers to complete their compliance obligations.
The Ministry also highlighted that taxpayers may face penalties for missing the ITR filing deadline.
“Filing an Income Tax Return (ITR) is an important compliance requirement under the Income Tax Act. It enables individuals and entities to declare their income, report taxes paid, and claim refunds where applicable. Timely filing helps avoid penalties, ensures the faster processing of refunds, and also serves as an official financial record for availing loans, obtaining visas, and fulfilling other financial requirements,” says the document.
Manas Chugh, chartered accountant, Oslan Consultants, said that the government looks determined to stick to the September 15, 2025 deadline. "Despite delays in form & utilities release, mismatch in AIS, TIS and 26AS reconciliation, and portal performance issues, the government appears determined to stick to the September 15 deadline for non-audit individuals."
He further said, "Taxpayers should avoid delaying the return filing and complete the process at the earliest."
According to official statistics updated on the Income Tax Department’s website as on September 8, 2025, for AY 2025-26, from 13.37 crore individual registered users, as many as 5 crore returns have been filed. Out of which, more than 4.72 crore returns have been verified, and over 3.39 crore returns have been processed.
As far as the ITRs filed in the last two assessment years are concerned, the Finance Ministry document referring to CBDT data says that for AY 2024–25, a record 7.28 crore ITRs were filed up to 31 July 2024, compared to 6.77 crore in AY 2023–24, registering a 7.5% year-on-year growth.
“With 7.28 crore forms filed as of July 31, 2024, data from the CBDT indicates that ITR files have grown steadily, suggesting both a wider tax base and a rise in digital adoption. The majority choosing the New Tax Regime and the increasing number of first-time filers suggests a move towards more formalised economics and easier compliance,” says the document.
Kinjal Bhuta, CA and lawyer, direct tax & international tax litigation, says that there may be regional deadline extensions because of ITR filing-related interruptions people faced in certain parts of India. She says if the government is extending the deadline, it should do well in advance.
“The ITR utilities for Income Tax Return forms were delayed and in a staggered manner, which reduced the tax filing season duration considerably. To top that, the recent inclement weather made ITR filing difficult in several states. So, there may be a deadline extension or there may be regional extension. If the government is planning to extend the deadline, it may do it well in advance as extending it on the eve of the due date doesn't serve any rightful purpose.”
What is late ITR filing fees
If the return is submitted after the deadline, the taxpayer needs to pay a late filing fee. For returns submitted after the due date, a charge of Rs 5,000 is required. However, the late fee is limited to Rs 1,000 in situations when the total income is less than Rs 5 lakh.
In addition to the late filing cost, the Income Tax department also charges 1% monthly interest rate of part thereof on the outstanding tax amount.
[The Economic Times]
