Income tax filing deadline alert: Sept 15 could cost you big

Mark your calendars. The Central Board of Direct Taxes (CBDT) has officially set the last date for filing income tax returns (ITR) for the financial year 2024-25 (assessment year 2025-26) to September 15, 2025.

Till last year, the deadline stood at July 31, but structural changes and delays in rolling out the updated utilities pushed the government to provide taxpayers with additional time.

Different Deadlines

While the September 15 date applies to most individual taxpayers, there’s an exception for those whose accounts require a mandatory audit. For them, the due date remains unchanged at September 30, 2025. Missing these deadlines can be costly, as penalties kick in almost immediately.

What Happens If You Miss the Date?

Taxpayers should not confuse the extension with leniency. The law is clear. Under Section 234F, a penalty of ₹5,000 applies if your income exceeds ₹5 lakh and you fail to file on time.

For those earning below ₹5 lakh, the penalty is limited to ₹1,000. Beyond this, late filing may also affect loan approvals, visa processing, and refund eligibility, making it far riskier than just the penalty fee.

Window for Revised and Updated Returns

For those who have already filed but later realize mistakes, the government has left some room. Revised or belated returns can be filed until December 31, 2025. And for more complex corrections, taxpayers can use the updated return facility (ITR-U) until March 31, 2030.

This long runway ensures compliance even if mistakes surface much later.

Why Did the Government Extend the Deadline?

The extension isn’t without reason. Reports suggest delays in the release of updated ITR forms and technical hiccups on the e-filing portal.

Add to this the late reflection of TDS data in Form 26AS and AIS, and taxpayers were facing genuine hurdles. Calls for an extension grew louder, and the government finally stepped in.

Good News for Refund Seekers

Interestingly, this delay has a silver lining for many. Under Section 244A, taxpayers eligible for refunds may now get up to 33% higher interest since the interest accrues from April 1, regardless of the extension. However, remember that this interest is taxable and must also be declared in your ITR.

A New Utility to Make Filing Easier

To reduce friction in the filing process, the Income Tax Department has rolled out an Excel-based offline utility for ITR-1 (Sahaj) and ITR-4 (Sugam).

Targeted at employees, pensioners, freelancers, and small business owners, the tool lets users validate their returns offline, generate a JSON file, and upload it to the portal, even without internet access. This is a major step in making the process more accessible and user-friendly.

With September 15 as the final date, taxpayers must act swiftly. While the government has offered more time, penalties and compliance costs remain heavy for late filers.

File on time, file accurately, and if mistakes occur, remember that the window for revisions remains open until December 31, 2025.