The Central Board of Direct Taxes (CBDT) has announced an extension of the ITR filing deadline for AY 2025-26 to September 15, 2025, due to significant changes in ITR forms. Salaried employees need to note updates in Form 16 and the introduction of new reporting requirements.
The Central Board of Direct Taxes (CBDT) has extended the income tax return (ITR) filing deadline for Assessment Year (AY) 2025-26 to 15th September 2025. This extension from the usual 31st July deadline comes as a response to the “extensive changes introduced in the notified ITRs and considering the time required for system readiness and rollout of ITR utilities for Assessment Year (AY) 2025-26.” Despite this extension, the deadline for employers to issue Form 16 remained at 15th June, allowing salaried individuals ample time to prepare their filings. Employers are expected to adhere to this timeline to facilitate timely tax compliance.
Deepak Jain, Founder and CEO of TaxManager.in, in a column on a news website, said Form 16 remains a pivotal document for salaried individuals, summarising salary earned, deductions claimed, and Tax Deducted at Source (TDS) during the financial year. This year, it includes additional fields for declaring income from other sources, such as interest or dividends, via Form 12BAA, which must be submitted to employers. These updates aim to enhance accuracy and compliance, with an emphasis on reporting large expenses like foreign travel or high-value purchases, which are captured under Tax Collected at Source (TCS). Accurate reporting ensures that taxpayers can avoid discrepancies and potential audits.
Significant changes for this year also include updates to the standard deduction, with the old regime maintaining Rs 50,000 and the new regime increasing it to Rs 75,000.
Additionally, detailed disclosures under salary heads such as House Rent Allowance (HRA) and Leave Travel Allowance (LTA) are required to ensure accurate claims of exemptions and deductions. A new section, Column 388A, has been introduced to capture TDS and TCS from non-salary sources, aligning employer records with government data more closely. This alignment helps in reducing errors and ensuring transparency in the tax filing process.
Jain said salaried individuals are advised to prepare essential documents — Form 16, Form 12BAA, if applicable, bank interest certificates, rent receipts, and donation receipts. They should also cross-check the Annual Information Statement (AIS) and Taxpayer Information Summary (TIS) on the Income Tax portal to confirm the correct recording of all income sources and transactions.
Keeping these documents ready can prevent errors in tax computation and avoid potential notices from tax authorities due to mismatches or missing data. This proactive approach can significantly ease the filing process.
While these changes aim to streamline the process, taxpayers should exercise diligence in selecting the appropriate tax regime. Errors in this choice could lead to overpayment or missed deductions. Those with additional income sources like rental income, capital gains, or freelance earnings face increased complexity, requiring a deeper understanding of tax rules and accurate reporting, Jain added.
Despite these challenges, the overall filing process for salaried individuals has become more manageable with pre-filled forms, easing the annual task of tax compliance. The mental discomfort that often accompanies tax filing can be alleviated by understanding the process better and utilising available resources effectively, thus transforming a daunting task into a more straightforward one.
