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The Income Tax Department has extended the filing deadline for income tax returns (ITRs) for individuals and non-audited entities from July 31 to September 15, 2025, citing the need to implement backend changes after sweeping revisions to ITR forms.
The Central Board of Direct Taxes (CBDT) attributed the delay to “extensive structural and content changes” in the new forms for the assessment year 2025–26 (FY 2024–25). The Department stated that system integration and testing of updated return utilities are still underway, requiring additional time to ensure smooth and accurate filing.
System Delays Linked to Infosys Backend Work
Despite notifying revised ITRs by the end of April, officials said backend development managed by Infosys remains incomplete. As a result, utilities to facilitate return filing have not been rolled out.
“The Department and Infosys are still working on system readiness,” a government official told The Indian Express. Infosys did not respond to queries regarding the delay.
What’s New in the ITR Forms?
The revised ITRs feature notable changes including:
- Long-term capital gains (under Section 112A) reporting added to ITR-1 and ITR-4
- Foreign income and asset disclosure requirements expanded
- Increased granularity in capital gains reporting
Previously, taxpayers filing ITR-1 were required to file ITR-2 to report capital gains separately. The new forms simplify this process, albeit with significantly more detailed disclosures.
Who Is Affected by the Extension?
The extended deadline applies only to individuals and entities not subject to audit.
Specifically:
- ITR-1 (Sahaj): For individuals with income up to ₹50 lakh from salary, one house property, interest income, and LTCG up to ₹1.25 lakh
- ITR-4 (Sugam): For individuals, HUFs, and firms with income up to ₹50 lakh from business or profession
Tax Professionals Applaud the Move
Tax experts welcomed the extension.
This offers much-needed relief; given the complexity and increased reporting in this year’s forms, the additional time allows taxpayers to interpret changes and ensure accuracy in their returns.
The CBDT echoed this, stating that the new timeline would ensure “integrity, accuracy, and a smoother filing experience” for taxpayers adapting to the updated regime.
A formal notification of the extension is expected soon.
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