Tax

ITR Deadline: Will The Government Grant More Time For Filing Income Tax Return?

To ensure the tax portal and compliance processes run efficiently during peak filing periods, the government should focus on strengthening the portal’s infrastructure, improving user-friendliness, and thoroughly testing new updates in advance

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Will There Be An Extension In Tax Filing Deadline? Photo: AI
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Summary

Summary of this article

  • Government extended ITR filing deadline to September 15, 2025.

  • Calls rise for further extension due to glitches, festive calendar.

  • Experts suggest limited relief, not blanket extension, to avoid delays.

  • New ICAI audit rules add compliance burden for small taxpayers.

The government had already extended the deadline for filing taxes to 15th September. This was due to a delay in the release of Income Tax Return (ITR) forms, along with various technical glitches in the ITR utility. However, as the date nears, there are calls for a further extension.

“Despite this extension, calls have been coming up, due to a mix of issues ranging from technical glitches, the upcoming festive season, etc. However, since there was already a significant extension and the plea of the festive season (which technically starts post this deadline), there are mixed views as to whether the government will or will not give in to this demand,” says Ritika Nayyar, partner, Singhania & Co.

Government May Weigh Limited Relief Instead Of Blanket Extension

It may become clearer towards the end of this week or early next week, depending on the stats of how much filing has been done. All these extensions eventually have a ripple effect on all future filings and processing of returns, causing a massive delay to the whole yearly process and compliance.

“While a short, targeted extension (say 15–30 days) could be justified to accommodate both the festive calendar and reporting-format changes, an indefinite or open-ended extension may undermine compliance culture. The government may also explore technical relaxations (waiver of late fees, staggered deadlines by category) instead of a blanket extension,” says Deepak Kumar Jain, Founder and CEO, TaxManager.in - the tax advisory and e-filing portal platform of Rising Advisory Services.

New ICAI Rules Add Burden For Small Taxpayers

Also, there have been new guidelines for non-corporate taxpayers (like proprietors, professionals, and partnerships) that must now align with the revised Institute of Chartered Accountants of India (ICAI) tax audit reporting format.

“This requires additional disclosures, reconciliations, and certifications that were not part of earlier filings. Accountants and tax professionals are having to rework checklists, templates, and client data, which is slowing down the preparation process,” says Nayyar.

The revised ICAI requirements have lengthened preparation time, creating a mismatch between compliance expectations and the practical ability of small taxpayers and their auditors to finish before the deadline.

“To ensure the tax portal and compliance processes run efficiently during peak filing periods, the government should focus on strengthening the portal’s infrastructure, improving user-friendliness, and thoroughly testing new updates in advance. Additionally, introducing staggered filing deadlines can help reduce last-minute pressure and ensure a smoother and more seamless compliance experience,” says Ashish Goyal, partner, CorpAcumen Advisors.

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