No deadline extension for income tax return filing AY 2025-26? Reasons which don’t justify more time

Will the Income Tax Department extend the last date to file income tax return (ITR) for the assessment year 2025-26? Crores of taxpayers are asking this question. The answer to this question might disappoint them if they are expecting another extension.

Considering the ITR filer numbers till September 8, the income tax return filing process is going on smoothly even though there are some complaints from tax professionals and individual taxpayers about technical glitches and other issues.

Number of ITRs filed till September 8

With 6 more days to go for the deadline, the number of income tax return filers has already crossed the 5-crore mark and this figure is on expected lines for the tax department. Of these 5 crore ITRs, the government has processed more than 3.39 crore tax returns.

Cautioning people who are seriously awaiting another deadline extension, tax experts say taxpayers must approach the 15th September deadline for filing income tax returns with seriousness and not assume that an extension will be granted this year.

“The numbers released by the Central Board of Direct Taxes (CBDT) clearly show that compliance is progressing as expected: more than 5 crore ITRs had already been filed by 8th September, and with approximately 3 crore more expected by the deadline, the filing trajectory is fully in line with last year’s experience,” Dinkar Sharma, Company Secretary and Partner, Jotwani Associates, said.

ITR deadline extension doesn’t have ‘sufficient grounds’

According to Sharma, this makes it unlikely that the government will find “sufficient grounds to justify” extending the due date.

“On the contrary, granting extensions when compliance levels are on track undermines the discipline of timely filing and disrupts the tax administration’s overall schedule of assessments, audits and refunds,” he added.

Missing ITR deadline may lead to financial and procedural consequences

For taxpayers, waiting in the hope of an extension can have serious financial and procedural consequences, Sharma noted. “Filing after the due date attracts late fees under Section 234F of the Income Tax Act, which can be as high as Rs 5,000, depending on income. Additionally, any unpaid tax dues become subject to interest liabilities under Sections 234A, 234B, and 234C, further increasing the financial burden.”

Delayed filing also leads to other losses

Delayed filing also curtails important benefits, for instance, taxpayers lose the ability to carry forward losses on capital gains or business income, which could otherwise be used to offset future profits and reduce tax liabilities in subsequent years. Thus, compliance within the prescribed timeline safeguards both financial interests and legal entitlements.

Another compelling reason for early filing is the risk of technical bottlenecks near the deadline. Even though the Income Tax Department has significantly upgraded its e-filing systems, the sheer volume of last-minute traffic — often several lakh returns in a few hours — can lead to slowed processes, login failures, or incomplete submissions.

Taxpayers who delay may face difficulties in uploading their returns, generating acknowledgements, or completing e-verification, which are all mandatory steps for a valid filing. Early compliance not only avoids these practical difficulties but also provides sufficient time for rectification in case of data mismatches, errors in TDS credits, or discrepancies in AIS/TIS reports.