The Central Board of Direct Tax (CBDT) on Tuesday decided to expand the fixed date of filing of ITRs for evaluation of the assessment year 2025-26, which was due to filing by 31 July 2025 by 15 September 2025 by 31 July 2025.
Due to ITR deadline expansion
“ITRS notified for AY 2025-26 has made structural and material amendments aimed at simplifying compliance, increasing transparency and enabling accurate reporting. These changes require additional times for system development, integration and testing of related utilities,” a statement of CBDT states.
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“In addition, the credits generated from TDS statements due to entering by 31 May 2025 are expected to reflect in early June, limiting the effective window for return filing in the absence of such expansion,” said this.
The department said that this expansion would provide more time due to ITR forms, system development needs and significant amendments to TDS credit reflections. It also ensures a smooth and more accurate filing experience for all.
CBDT said that a formal notification to this effect will be released soon. “This expansion is expected to reduce the concerns raised by the stakeholders and provide enough time to comply, ensuring the integrity and accuracy of the return filing process,” said this.
New ITR Form 5
Earlier this month, CBDT introduced the new ITR Form 5 for Ay 2025-26 with major changes. Notable amendment was an introduction to a division within the schedule-captainal benefits, taxpayers were mandatory to report capital gains before and after July 23, 2024.
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New changes are allowed for conditional reporting of capital deficit made during share buyback. This is applied when the dividend income related to these buybacks is being declared as “income from other sources”, especially for transactions occurring after October 1, 2024.
The new Form 5 has a specific reference to Section 44BBC of the Income Tax Act and needs to specify the tax cut in the Source (TDS) section code within the schedule-TDS.
