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Why waiting for the Income Tax Return last date extension beyond September 15 can backfire

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By Vani Dua

4 min read | Updated on September 13, 2025, 11:47 IST

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SUMMARY

Nearly 6 crore ITRs have been filed for the assessment year 2025-26 (AY26). Around 8 crore taxpayers are expected to file their returns in 2025, which means that about 2 crore returns are still pending. Taxpayers are advised to file their ITRs on time and avoid penalisation. 

due date extension risk, last minute filing, penalty for delay

Taxpayers can’t switch their tax regime after the due date, which means that they may lose their refund if they file after the deadline.

The income tax return (ITR) filing deadline, September 15, is only three days away now. Many taxpayers might still be expecting the deadline to be extended again. Previously, the IT department extended the deadline for the assessment year 2025-26 (AY26) to September 15 from July 31 due to the changes in the ITR forms.
Nearly 6 crore ITRs have already been filed for AY26, and 50 lakh were filed just on Friday, according to IT department data as of September 12. Out of the 6 crore (precisely 5,95,42,216), over 5.5 crore have been verified, and over 3.7 crore have been processed by the IT department.

Those who are still waiting for the last day to file ITR, or better, for the deadline to be extended again, should now consider if that is wise. It is almost clear now that the deadline won’t be extended, and waiting any longer can backfire and cost you big.

Will the deadline be extended?

Even with the demands from tax professionals, the Income Tax Department has not announced any extension, and there is no update from their end. The IT department, in fact, has urged taxpayers to file their returns early and not wait for the last day.

This means that if you miss the deadline, you can face penalties of up to ₹5,000, depending on your annual income. You can also miss out on many benefits, including carrying forward losses like business and capital gains, and claiming deductions under several Sections of the Income Tax Act.

Moreover, an interest of 1% on unpaid tax is also applicable per month (or part thereof), which means that you will face many issues if you miss the due date. While you will still be able to file a belated return, you will still have to face penalties and relevant charges.

Importantly, taxpayers can’t switch their tax regime after the due date, which means that they may lose their refund if they file after the deadline. Filing too close to the due date also generally results in a delay in your refund processing.

So, instead of waiting for the deadline to be extended, taxpayers are advised to file their ITRs on time and avoid penalisation.

Deadline extension demand

Many tax professional bodies have been asking for the deadline to be extended again, immediately. According to reports, the Karnataka State Chartered Accountants Association (KSCAA), the central council (CIRC) of the Institute of Chartered Accountants of India (ICAI), and the Advocates Tax Bar Association (ATBA) have requested the Ministry of Finance to extend the due date.
Highlighting many issues with the e-filing Income Tax Return portal, they are seeking an immediate extension of the deadline. Moreover, many tax professionals are asking for a deadline extension on social media platforms, and the #extend_due_date_now campaign is active on X (formerly Twitter).

The BJP Chartered Accountant (BJPCA) Cell has also made a similar demand. Tax professionals want the deadlines to look like this:

  • Non-audit ITRs: September 30 (presently September 15)
  • Tax audit reports (TAR) under Section 44AB: November 30 (currently September 30)
  • ITRs in Audit cases: December 31 (currently October 31)

Even with these demands, it is very unlikely for the deadline to be extended now. In AY25, 7.28 crore returns were filed by July 31.

While 6 crore ITRs have been filed, around 8 crore taxpayers are expected to file their returns in 2025, which means that nearly 2 crore returns are still pending.

Don’t wait any longer now, and go file your ITR as soon as possible. It is always better to do it now than later, and with the deadline just over our heads, later can cost you more than you think.

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About The Author

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Vani Dua is a journalism graduate from LSR College, Delhi. She is passionate about news and presently covers markets, business, economy, and other related fields. She is an avid reader and loves to spend her time weaving stories in her head.