Less than 40% of Income Tax Returns Processed as Government Extends Filing Deadline to September 15
New Delhi – August 21, 2025
In a significant move to accommodate taxpayers and address ongoing delays, the Finance Ministry has extended the deadline for filing income tax returns (ITR) for the assessment year 2025-26 to September 15, 2025. Originally set for July 31, this extension grants an additional 46 days to taxpayers amid processing backlogs and system upgrades.
Delayed Utility Releases Impact Filing Cycle
The extension follows the late release of updated ITR filing utilities critical for taxpayers to complete their submissions. This year, the Income Tax Department made available the Excel utilities for ITR-1 and ITR-4 only on May 29, nearly two months later than the usual schedule. These tools facilitate both online and offline filing and incorporate validations to reduce errors.
Though utilities for remaining returns forms—from ITR-1 to ITR-6—have since been launched, the utility for ITR-7 is yet to be released, which may affect certain categories of taxpayers.
Processing Progress Remains Slow
Despite filings beginning on May 29, only about 3.29 crore returns have been submitted and 3.19 crore verified thus far. However, less than 40% of these returns—approximately 1.13 crore—have been processed by the government even after three months. This lag underscores challenges in managing returns amid the revamped forms and revamped systems.
Reasons Behind the Extension
Officials from the Finance Ministry explained that the deadline extension was warranted due to "extensive changes" in the ITR forms and filing utilities. The revised forms aim to streamline compliance requirements, enhance transparency, and improve the accuracy of taxpayers’ reporting.
Moreover, a considerable amount of time was needed for the development, integration, and rigorous testing of these new utilities to ensure a smooth user experience and reliable processing on the backend.
Tax experts have welcomed the extension, noting that the additional time will assist taxpayers in accurately completing their filings, minimize errors, and reduce the risk of rejections or delays in processing.
Looking Ahead
Taxpayers are encouraged to utilize the extended deadline efficiently to avoid last-minute filing rushes and ensure their returns are correctly filed and verified. The government is expected to continue enhancing its IT systems to improve processing times and taxpayer convenience in future assessment years.
As the September 15 deadline approaches, individuals and businesses are advised to stay updated on relevant announcements from the Income Tax Department and plan their filings accordingly.
— Smart Money Mindset News Desk