 "The Income Tax Department has extended the deadline for filing ITRs to September 15. Representational image.")
CBDT has decided to extend the due date of filing of ITRs, which are due for filing by July 31 to September 15.
“This extension will provide more time due to significant revisions in ITR forms, system development needs, and TDS credit reflections. This ensures a smoother and more accurate filing experience for everyone. Formal notification will follow,” the Income Tax Department of India said in a post on social media platform X.
The deadline has been extended in consideration of “the extensive changes introduced in the notified ITRs and considering the time required for system readiness and rollout of income tax return (ITR) utilities for assessment year (AY) 2025-26,” the department said in a press release.
What is ITR?
An ITR is a document filed by individuals, businesses, and other entities to report their annual income, tax liabilities, and deductions to the Income Tax Department of India. Filing an ITR allows taxpayers to declare their total earnings and applicable taxes paid during the financial year.
Filing an ITR is essential as it serves several purposes, including:
Claiming refunds if excess taxes have been paid.
Demonstrating financial stability, useful for securing loans, visas, or government services.
Ensuring compliance with tax laws to avoid penalties or legal issues.
Who must file an ITR?
In India, filing an ITR is mandatory for individuals and entities based on their income level, age, residency, and specific financial transactions during the financial year. Under the old tax regime, individuals below 60 years must file returns if their gross total income exceeds Rs 2.5 lakh annually. Senior citizens, aged 60 to 79 years, are required to file ITR if their income crosses Rs 3 lakh, while super senior citizens, aged 80 and above, need to file only if their annual income exceeds Rs 5 lakh. Meanwhile, under the new tax regime, individuals with taxable income up to Rs 12 lakh are exempt from paying income tax, though filing requirements may still apply depending on other financial activities.
Aside from income thresholds, certain financial activities trigger mandatory ITR filing irrespective of total earnings. These include holding foreign assets or income, possessing signing authority for foreign bank accounts, incurring expenses exceeding Rs 2 lakh on foreign travel, or electricity consumption costing over Rs 1 lakh in a financial year. Additionally, taxpayers who seek exemptions on capital gains taxes, refunds on taxes deducted, or aim to carry forward losses must also submit their returns.
Non-Resident Indians (NRIs) are also obligated to file if their Indian income surpasses Rs 2.5 lakh annually. However, certain senior citizens aged 75 years or older can benefit from an exemption if their sole income comprises pension and interest received from a specified bank that also manages their pension account.