This year, the government has given a bit of a breather by extending the deadline to file income tax returns (ITRs) for non-audit cases to September 15, 2025. However, that doesn’t mean one can afford to delay
The tax season is in full swing, and if one is a retail investor juggling capital gains, dividends and multiple income streams, it’s time to pay attention. This year, the government has given a bit of a breather by extending the deadline to file income tax returns (ITRs) for non-audit cases to September 15. However, that doesn’t mean one can afford to delay. Here’s everything one needs to know about the new deadline, possible penalties and the important updates made to ITR forms this year.
New deadline
The usual deadline to file your ITR is July 31. However, the government sometimes gives taxpayers a bit more breathing room by extending this date. For the Financial Year (FY) 2024-25 (Assessment Year 2025-26), the deadline has been extended to September 15 for individuals and HUFs not required to undergo a tax audit.
This extension is a welcome relief, it gives you extra time to gather all the necessary documents, double-check your investment records and ensure your return is filed accurately.
If one still misses the September 15 deadline, the following penalties and interest charges apply:
• Late filing penalties
₹1,000: If total income is below ₹5 lakh
₹5,000: If total income exceeds ₹5 lakh.
• Interest on tax due
If there’s any unpaid tax liability, interest (Section 234A of the Income Tax Act, 1961) at 1 per cent per month
• Other implication
• Losses arising under any head of income (except house property loss) cannot be carried forward to the subsequent years
Key changes
The Central Board of Direct Taxes (CBDT) has introduced several updates in ITR-1, ITR-2 and ITR-3 this year to increase transparency and improve tax compliance. Retail investors should particularly note the following:
• Taxpayers with long-term capital gain from listed equity shares and equity mutual funds under section 112A can file a tax return using ITR-1, subject to the condition that the capital gain does not exceed ₹1.25 lakh and there is no carry-forward or brought-forward losses.
• The TDS section (like 194, 194A etc), under which TDS is deducted from the income earned, must be mentioned in the ITR form.
• For FY2024-25, the reporting requirement of assets and liabilities for taxpayers having income above ₹50 lakh is changed to income exceeding ₹1 crore.
• Taxpayers, especially those opting for the old regime, will need to provide detailed information when claiming exemptions and deductions in their ITR for FY2024-25. For instance, entering the Document Identification Number (DIN) is now required for claiming deductions under Section 80C.
• Enhanced disclosure for home loan, where taxpayers are required to provide detailed information in the ITR including the loan account number of the bank/institution, date of sanction of loan, total amount of loan taken.
• Enhanced disclosure for claiming HRA exemption such as place of work (metro, non metro), actual HRA received, actual rent paid, etc.
• While reporting capital gains from property, shares, mutual funds, etc, the ITR requires a break-up of transfers made before, on, or after July 23, 2024, to reflect the revised tax rates and indexation rules.
Other filing tips
• Reconcile with AIS and TIS: Always verify your income details, especially dividends, interest and capital gains against the Annual Information Statement (AIS) and Taxpayer Information Summary (TIS) to prevent discrepancies.
• Claim TDS and advance tax: Ensure you claim credit for any tax already deducted at source (TDS) or paid as advance tax.
• Use the correct ITR form: Filing with the wrong form may result in a defective return notice. For example:
o ITR-1: For individuals being a resident (other than not ordinarily resident) having total income upto ₹50 lakh & ITR-1 having Income from salaries, one house property, other sources (interest etc), long-term capital gains under section 112A up to ₹1.25 lakh.
o ITR-2: For Individuals and HUFs not having income from profits and gains of business or profession
o ITR-3: For individuals and HUFs having income from profits and gains of business or profession.
Although the extended deadline provides additional time, retail investors should avoid delaying their filings to prevent errors, penalties or interest charges. With enhanced data-sharing between brokers, banks and the income tax department, it’s crucial that your ITR accurately represents your complete income profile.
The author is Tax Partner, EY India. Shanmuga Prasad, Director-Tax, EY India has also contributed to this article
Published on August 23, 2025
