The government’s decision earlier this year to extend the deadline for filing Income Tax Returns (ITR) for Assessment Year 2025–26 has offered taxpayers additional breathing space. Initially, the due date for most individuals and salaried taxpayers was July 31, 2025, but it was pushed forward in May following repeated requests from professional bodies and taxpayers citing technical challenges on the income tax portal and compliance burdens under the new tax regime.
Despite the extension, the Income Tax Department reported that 5.3 crore ITRs have already been filed, indicating strong compliance from both salaried and business taxpayers. This filing momentum reflects growing awareness among taxpayers about timely compliance and the adoption of digital platforms for filing returns.
According to officials, the extension was introduced not just to ease compliance but also to ensure accuracy in reporting income, deductions, and tax credits. With the government introducing significant reforms under the New Tax Act 2025, including clarifications on exemptions, rebate structures, and compliance relaxations for small taxpayers, the extended window has allowed individuals to carefully assess which regime—old or new—provides greater tax benefits.
Tax experts have highlighted that while the extension is a relief, it should not encourage last-minute filing, as delays often lead to portal slowdowns and errors in return submissions. The department has also advised taxpayers to verify bank accounts, reconcile TDS details, and ensure accurate disclosure of income from multiple sources to avoid notices later.
Key Highlights
- ITR deadline for AY 2025–26 extended by government in May.
- 5.3 crore returns already filed, reflecting strong compliance.
- Extension aimed at reducing reporting errors and portal pressure.
- Taxpayers urged to avoid last-minute rush for smoother filing.
Who Should Take Action – Specific Advice
Salaried individuals, professionals, and businesses yet to file should take immediate steps to complete their ITRs. Taxpayers with multiple income streams—such as property rentals, capital gains, or freelance work—should double-check entries and reconcile with Form 26AS and AIS. Chartered accountants and tax practitioners must proactively guide clients to avoid penalties once the extended deadline ends.
India Advocacy Insight
With compliance becoming increasingly digitally driven, timely filing of returns not only avoids penalties but also strengthens taxpayer credibility. At India Advocacy, we believe the government’s extension reflects a commitment to taxpayer convenience and compliance efficiency, while reinforcing the importance of structured planning in personal and corporate taxation.
