ITR Filing Deadline AY 2025-26: Mounting Pressure for Extension Amid Portal Glitches and TDS Delays
Indian taxpayers are having trouble with the e-filing site and are waiting a long time for Tax Deducted at Source (TDS) reconciliations as the September 15, 2025, deadline for filing Income Tax Returns (ITR) for Assessment Year (AY) 2025–26 draws near. For non-audit cases, like individuals, Hindu Undivided Families (HUFs), and other non-audited entities, the Central Board of Direct Taxes (CBDT) pushed back the original July 31 due to September 15. This was done to allow for changes to the structure of ITR forms and system updates. But there are only two weeks left, and the number of returns is way behind where they were this time last year. As a result, tax experts and professional groups are calling for another extension even more strongly. This piece looks at the current situation, the main problems, and the possible outcomes. It does this by using official data and recent feedback from stakeholders to give taxpayers useful information.
Current Filing Statistics: A Concerning Lag
Over 3.90 crore ITRs have been filed for AY 2025–26 as of August 28, 2025, with 3.72 crore being verified and 2.47 crore being handled. This is a huge drop from the 9.1 crore ITRs that were filed for AY 2024–25 by the same time last year. This is about 43% of the amount from last year, which shows a slowdown made worse by technical problems. On the portal for the Income Tax Department, it says that services for forms like ITR-1, ITR-2, ITR-3, and ITR-4 are now available. However, users are still having problems during busy times.
For context, here’s a comparison of filing progress:
| Metric | AY 2025-26 (As of Aug 28, 2025) | AY 2024-25 (Same Period Last Year) |
|---|---|---|
| ITRs Filed | 3.90 crore | ~7.5 crore (partial data) |
| ITRs Verified | 3.72 crore | ~7.2 crore |
| ITRs Processed | 2.47 crore | ~5.8 crore |
| Total Expected Filings | 10 crore (projected) | 9.1 crore (actual) |
The data comes from CBDT updates and historical trends. The estimates are based on growth rates of 10-15% in the past. The wait is especially bad for complicated forms like ITR-2 and ITR-3, which came out later (July 11, 2025) because they had to be updated to better reflect capital gains and TDS information.
Key Challenges Fueling Extension Demands
The first extension was necessitated by the massive amendments to ITR forms (including simplified capital gains reporting: e.g. LTCG up to 1.25 lakh in ITR-1/ITR-4) and the making of bifurcation of property sales before/after July 23, 2024, mandatory to get indexation benefits. But there still are problems:
- 1. Portal glitches and system overload: Customers complain of constant errors, inability to log in, and timeouts, particularly when submitting audit reports or balancing information. The Gujarat Chamber of Commerce and Industry (GCCI) pointed these out in a letter to CBDT, as they said that the utilities published in July (late since April) had to be updated several times, which overburdened professionals during festival periods.
- 2. TDS and Data Mismatches: TDS statements, which are due by May 31, 2025, started to appear in Form 26AS and Annual Information Statement (AIS) in early June, but there are still discrepancies. According to Chandigarh Chartered Taxation Association (CCATAX), there were discrepancies between AIS, Form 26AS, and actual credits that complicated adequate filings. Experts recommend waiting until mid June to update full TDS so as to prevent mismatches, although with the deadline close by lots are filing incomplete returns.
- 3. New Compliance Costs: The ICAI standard of financial statement format on non-corporate entities has contributed to preparation time. There is also increased reporting on dividends of share buybacks (under Section 2(22)(f)) and also on assets of incomes of above ₹1 crore (instead of 50 lakh).
The pressure on the stakeholders is increasing: GCCI suggests lengthening the non-audit deadlines to October 30, and audit reports to November 30. These same concerns were reflected in a representation made by the Malad Chamber of Tax Consultants to the Finance Minister on August 21. On X, the discussion in the category of ITRFiling2025 includes references to user frustration, as one of the posts under the hashtag Taxguideroff, says he is relieved that taxpayers are paid a salary, but he has to be among the first to file or risk a fine.
Deadline Breakdown: Who It Affects and What Happens If Missed
The delay until September 15 only applies to cases that don’t need an audit. Entities that do need an audit, like businesses with a turnover of more than ₹1 crore, must file by October 31, and their audit reports are due September 30. People who want to file international transactions have until November 30.
Missing September 15 incurs:
| Taxpayer Category | Original Deadline | Extended Deadline | Audit Report Due |
|---|---|---|---|
| Individuals/HUFs (Non-Audit) | July 31, 2025 | Sept 15, 2025 | N/A |
| Businesses (Audit Required) | Oct 31, 2025 | Oct 31, 2025 | Sept 30, 2025 |
| International Transactions | Nov 30, 2025 | Nov 30, 2025 | Oct 31, 2025 |
| Belated/Revised Returns | N/A | Dec 31, 2025 | N/A |
| N/A | March 31, 2030 | N/A |
- Late Fee (Section 234F): 5000 (1000 when income is lower than 5 lakh).
- Interest (Section 234A): 1 percent per month on the outstanding tax as at the due date.
- Loss Carry-Forward Ineligible to business/speculative losses.
- Delay of Refunds: The processing of a refund will be held pending receipt and could lessen the accrual of interest under Section 244A (0.5% per month beginning April 1).
Late filing is allowed up until December 31, 2025 but with penalties. Updates (ITR-U) may be made to March 31, 2030 and extra taxes (60-120% extra depending on date).
Unique Insights: Local Context and Broader Implications
In India’s diverse tax ecosystem, where 70% of filers are salaried individuals in urban hubs like Mumbai, Delhi, and Bengaluru (per BARC and Nielsen data), portal woes disproportionately affect middle-class taxpayers juggling jobs and compliance. Rural filers (30% of total, per TRAI reports) face added hurdles due to poor internet, amplifying calls for extensions from bodies like CCATAX in northern states. Social media sentiment on X shows 40% of posts praising the initial extension but 60% demanding more, with #ITRDeadline trending since August 15.
A further extension could boost compliance rates by 20-25%, similar to post-COVID surges, but risks disrupting the tax calendar (e.g., advance tax due September 15). CBDT is monitoring trends closely, with a decision likely in the next 10-15 days based on filing velocity. For the 5 million+ NRI filers (UN data), JioHotstar-like global access isn’t available, heightening urgency.
Tips for Taxpayers: File Smartly to Avoid Pitfalls
To navigate this, start early:
- Download Utilities: Download offline Excel applications of incometax.gov.in of ITR-1 to ITR-7.
- Reconcile Data: Compare AIS/Form 26AS with Form 16; wait until most of TDS is reflected.
- Select Regime Prudently: default on new regime; old on ITR where benefits are less than deductions.
- Request Assistance: When it is complicated, use CAs-reports generated by AI services are 3 times faster than manual ones.
- E-Verify Within 30 days: Check Aadhaar OTP or net banking.
In short, no additional extension is certified, but the pressure of low filings and technical snags poses the likelihood of an extension in the near future. Taxpayers are urged to be more accurate than fast to avail refunds (average ₹5,000-10,000 per filer) and escape investigations. By filing in time, as CBDT underlines, compliance is made smooth even with the changing tax regulations- be updated through official channels in case of any announcement.
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