Key Points:
- ITR Deadline: Sept 15 for most taxpayers; audit ITRs due Oct 31.
- Extension Calls: Professionals cite tight timelines and portal glitches.
- Late Risks: Penalties, interest, and loss of tax benefits.
With the Income Tax Return Deadline of September 15 fast approaching, millions of taxpayers are still rushing to complete their filings. Although the government has already extended the due date once, calls for another extension are mounting from professional bodies, trade associations, and taxpayers who point to late utility releases and technical challenges on the tax portal.
The Central Board of Direct Taxes (CBDT) had initially set July 31, 2025, as the deadline for individuals and non-audit cases, later extending it to September 15. As of September 8, over five crore ITRs had been filed, of which 4.72 crore were verified and 3.39 crore processed. Yet, last year’s filings totaled 7.28 crore, leaving nearly three crore returns still pending this year.
Why professionals seek more time
Chartered accountants and industry groups argue that the compressed timeline has created an unrealistic compliance burden. The staggered release of utilities left little room for preparation, with key forms made available only between late May and mid-August.
Professional associations such as the Federation of Karnataka Chambers of Commerce & Industry (FKCCI), Chartered Accountants Association Surat (CAAS), and the Bombay Chartered Accountants’ Society (BCAS) have written to the CBDT citing mismatches in taxpayer data, glitches on the income tax portal, and heavy back-to-back compliance workloads. Similar appeals have come from regional tax bar associations and other trade bodies.
Currently, the deadline for filing the tax audit report is September 30, while the Income Tax Return Deadline for audit cases is due October 31. Many professionals argue that managing audit and non-audit workloads so close together without additional relief is impractical.
Differing opinions on an extension
Not everyone agrees that further extensions are justified. Some tax experts say compliance trends are broadly in line with last year, noting that if around three crore more returns are filed by the deadline, the numbers would be comparable. They argue that repeated extensions weaken filing discipline and disrupt the tax administration’s schedules for assessments, audits, and refunds.
Others believe taxpayers have legitimate grievances. Consultants highlight that the government itself delayed utility releases, yet expects taxpayers to comply strictly. Some professionals also question why refunds often take more than a year to process without accountability on the administration’s part.
Risks of waiting until the last minute
Experts warn that relying on an extension could prove costly. Late filing attracts penalties under Section 234F of up to ₹5,000, along with interest under Sections 234A, 234B, and 234C on unpaid taxes. More importantly, late filers lose benefits such as carrying forward capital losses or business losses to future years, which could increase their long-term tax burden.
Last-minute rushes also pose risks of system slowdowns. Even with upgrades, the tax portal faces heavy traffic during peak filing hours, often resulting in login failures or incomplete submissions.
As the Income Tax Return Deadline of September 15 approaches, taxpayers remain divided between hoping for relief and preparing to meet the existing schedule. For individuals, experts suggest one safe strategy: file early, avoid penalties, and secure the full benefits of timely tax compliance.
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