The Central Board of Direct Taxes (CBDT) has extended the ITR filing deadline for Financial Year (FY) 2024-25 (Assessment Year (AY) 2025-26) to September 15, 2025, from the original July 31, 2025. This extension provides relief to individual taxpayers and those who are not required to get their accounts audited. The move was made due to delays in the release of the ITR utilities and to give taxpayers more time to comply with significant changes to the ITR forms. 📅
Key Changes and Simplifications
The Income Tax Department has been working on simplifying the filing process, and a number of key changes have been introduced for the current filing season.
ITR-3 Form is Now Available
The online filing for ITR-3 has been enabled, which is the form used by individuals and Hindu Undivided Families (HUFs) who have income from business or profession. It is also applicable to those with income from sources like:
- Profits and Gains of Business or Profession
- Capital Gains
- Income from Other Sources
- Income from House Property or Salary/Pension
New Profession-Specific Codes
To improve reporting accuracy and streamline the filing process, the Income Tax Department has introduced new profession-specific codes. This is particularly important for individuals in modern professions. For example, some of the new codes include:
- Social Media Influencers & Content Creators: A dedicated code for individuals earning from brand promotions, sponsored content, and other online activities.
- Futures and Options (F&O) Trading: A new code for individuals engaged in trading derivatives on stock exchanges.
- Speculative Trading: This is specifically for intraday equity traders.
Selecting the correct code is crucial to avoid misclassification of income and potential scrutiny from the department. The new codes help the tax authorities to better measure income patterns by profession and ensure that the taxpayer's return aligns with the data available in the Annual Information Statement (AIS) and Form 26AS.
How the Deadline Extension Helps Taxpayers
The extension of the ITR filing deadline is a welcome move for several reasons. It addresses the practical difficulties faced by taxpayers and tax professionals due to a number of issues.
- Delayed Utilities: The ITR forms and their utilities were released later than usual this year, which compressed the time available for filing.
- Portal Glitches: Many users reported issues with the e-filing portal, including server crashes, session timeouts, and upload failures.
- Data Mismatches: There were also reports of data mismatches in the Annual Information Statement (AIS) and Form 26AS, which are crucial documents for filing returns.
The extension provides taxpayers with an adequate window to reconcile their data, gather all necessary documents, and complete their filing without rushing, thereby ensuring accuracy and compliance.
Important Points to Remember
Even with the extended deadline, it's important to keep a few things in mind:
- No Extension for Audit Cases: The deadline for taxpayers whose accounts require auditing remains October 31, 2025.
- Penal Interest: If you pay self-assessment tax after the extended deadline of September 15, 2025, you may be liable for penal interest under Section 234A of the Income Tax Act.
- Belated Returns: If you miss the September 15 deadline, you can still file a belated return until December 31, 2025, but a late filing fee of up to ₹5,000 may apply.
The new simplified forms and professional codes are a step towards making the tax filing process more transparent and accurate
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