New ITR deadline explained: Why the due date for filing income tax returns has been extended?

Income Tax professionals have been demanding a permanent extension of the due date for furnishing of Income Tax Return (ITR) from July 31 to September for a long time.

The Income Tax department confirmed this in a circular dated May 27, 2025, saying: "The Central Board of Direct Taxes (CBDT), in exercise of its powers under Section 119 of the Income-tax Act, 1961 ( 'the Act'), extends the due date of furnishing of Return of Income under sub-section (1) of section 139 of the Act for the Assessment Year 2025-26 in the case of assessees referred in clause ( c) of Explanation 2 to sub-section ( 1) of section 139 of the Act, which is 3 pt July, 2025 to 15th September, 2025.

But why did the Income Tax department decide to extend the due date?

The date has been extended because of multiple changes in the ITR forms this year. The following are the top six changes:

• LTCG up to ₹1.25 lakh under Section 112A can now be reported in ITR-1 and ITR-4.

• The tax department has increased the threshold for reporting assets and liabilities in Schedule AL has been increased from ₹50 lakh to ₹1 crore.

• The turnover limits have been increased for taxpayers opting for the presumptive tax scheme in ITR-4. The limit under Section 44AD (Business) has been raised to ₹3 crore. The limit under Section 44ADA (Professionals) has been raised to ₹75L

• Taxpayers are now required to disclose all bank accounts held in India (except dormant accounts ones).

• For rent deduction under Section 80GG, it is mandatory now to file Form 10BA along with the return, not separately.

• For opting out of the new tax regime, it is mandatory to file Form 10-IEA.

It further said that the notified ITRs for AY 2025-26 have undergone structural and content revisions aimed at "simplifying compliance, enhancing transparency, and enabling accurate reporting."

These changes necessitated additional time for system development, integration, and testing of the corresponding utilities. Furthermore, the tax department said that TDS statements, due for filing by May 31, 2025, are expected to begin reflecting in early June, which will limit the effective window for return filing in the absence of such extension.

What does the due date extension mean?