Jamshedpur : In a major relief for taxpayers, the Income Tax Department has extended the deadline for filing Income Tax Returns (ITR) for the financial year 2024-25 (Assessment Year 2025-26) from July 31 to September 15, 2025.
The Central Board of Direct Taxes (CBDT) announced the extension citing the need for additional time due to structural changes in ITR forms and the rollout of new utilities.
System Needs More Time Due to Significant Changes
According to CBDT, the ITR forms for AY 2025-26 have undergone major content and technical modifications to make the return filing process more transparent, accurate, and user-friendly. Implementing these changes requires additional time for system development, testing, and integration of the new utilities.
Simplified and Convenient Experience for Taxpayers
The Board believes that the extension will ease concerns among taxpayers and provide them with adequate time to file their returns accurately. This move is expected to enhance the overall quality of compliance.
Key Update in ITR-1: Reporting of Limited Capital Gains
One of the notable changes in ITR-1 (Sahaj) is the introduction of a provision allowing taxpayers to report long-term capital gains (LTCG) up to Rs 1.25 lakh under Section 112A.
This applies only to gains from the sale of listed equity shares or equity-oriented mutual funds. However, this facility is limited to taxpayers who do not have any losses under the Capital Gains head to carry forward or set off. Previously, such taxpayers had to opt for more complex ITR forms.
Who Cannot Use ITR-1
ITR-1 is still not applicable for taxpayers who:
Have capital gains from the sale of house property
Have short-term capital gains from the sale of shares or mutual funds
New Forms Already Notified
CBDT had notified the revised ITR-1 and ITR-4 forms on April 30, 2025. These forms are to be used for reporting income earned between April 1, 2024, and March 31, 2025.
