Every year around tax season, I find myself going through the same motions: pulling out bank statements, digging for receipts, double-checking numbers, and racing to beat the deadline. And I know I’m not alone in this. This year, however, there’s a bit of relief. The government has extended the income tax filing deadline to September 15, 2025.
When I first read the news, my initial reaction was just like yours—more time. But as I dug deeper, I realized this wasn’t just a routine extension. There is a big reason behind it: the Income Tax Return (ITR) forms have undergone significant changes, and the authorities want to give taxpayers time to adjust. That makes this extension not just helpful but also essential.
Why Has the Government Extended the ITR Filing Deadline?
The Central Board of Direct Taxes (CBDT) announced the deadline extension due to the updated ITR forms, which now require a much more detailed breakdown of your income, investments, deductions, and tax credits.
From a taxpayer’s perspective, this means we’re not just getting extra time to file; we’re being nudged to file more carefully, with a better understanding of what exactly we are submitting. It’s less about delaying and more about filing correctly.
Previously, we could get away with broadly listing income and deductions. But this year, the level of detail expected is far higher, and rightly so. The goal is to reduce mismatches, verify TDS entries more accurately, and ensure better compliance.
Who Will Benefit the Most from This Extension?
While all taxpayers stand to benefit, the extended timeline is especially helpful for:
Salaried employees, who now get more time to cross-verify Form 16, salary slips, and TDS credits
Freelancers and consultants, who often have multiple income sources and deductions
Small business owners, who need to reconcile ledgers, profit and loss accounts, and GST returns
Senior citizens and first-time filers, who might need additional help understanding the forms
I helped a friend file his taxes last year, and because of the rush, he missed reporting an interest income that later resulted in a notice. This year, he’s already started compiling documents, and we’re using the extra time to ensure everything matches the Form 26AS.
What Has Changed in the New ITR Forms?
The new ITR forms for AY 2025-26 are significantly more granular. Let me walk you through the major changes that every taxpayer should know:
1. Income Must Be Reported in Greater Detail
In previous years, your salary could be lumped under a single heading. Now, you must report individual components like:
Basic salary
House rent allowance
Special allowances
Perquisites (like company car or accommodation)
Retirement benefits
For property income, if you own a rental property, details like municipal taxes paid, rental income received, and interest on housing loans must be specified clearly.
Capital gains from shares, mutual funds, or real estate now require details like date of purchase, date of sale, cost of acquisition, and indexation value. This level of detail ensures better tracking and verification.
2. Deductions Must Be Itemized
In the past, many of us used to just lump our deductions under Section 80C, and that was that. Now, each deduction needs to be listed separately:
Life insurance premium
ELSS mutual fund investments
PPF contributions
Tuition fees
Home loan principal repayment
And beyond Section 80C, other deductions like medical insurance under 80D, interest on savings under 80TTA, and donations under 80G also need to be reported with precise figures.
When I sorted my documents this year, I discovered several deductions I hadn’t claimed last time simply because I didn’t have my receipts in order. That won’t happen again.
3. Foreign Income and Assets Disclosure
For those who work with international clients or have foreign bank accounts, the tax department now expects full disclosure of all foreign income and assets, even if they are dormant.
Even small dividends or foreign stocks need to be declared. I know a friend who works remotely for a U.S. client. This year, he’s spending extra time making sure his PayPal transfers and foreign currency invoices are accounted for accurately.
4. TDS Reconciliation is Now Crucial
Your ITR form will now insist that TDS amounts match exactly with what’s reported in Form 26AS and the Annual Information Statement (AIS).
If there’s any mismatch, you might not get the refund you’re expecting or could even receive a compliance notice. I spent over two hours matching my employer’s entries with Form 26AS, and found discrepancies that we eventually fixed.
5. Business and Freelance Income Requires Specific Reporting
If you are a freelancer, consultant, or business owner, you must now clearly separate:
Business income
Professional income
Presumptive taxation (if opted)
Specific expenses claimed
This clarity will be helpful in the long term, especially when applying for business loans or credit. It also makes your tax audit trail cleaner.
6. Capital Gains Section Demands Transparency
If you’ve sold shares, mutual funds, or real estate, the new ITR forms ask for detailed reporting, including:
Type of asset
Date of acquisition and sale
Indexed cost of acquisition
Short-term or long-term classification
This makes capital gains calculations more transparent and reduces the chance of incorrect tax computation.
Table: Old ITR Forms vs New ITR Forms – What’s Different?
| Aspect | Old ITR Forms | New ITR Forms (2025) |
|---|---|---|
| Income Reporting | General income heads | Detailed breakup of salary, property, gains |
| Deduction Reporting | Lump sum under Section 80C | Item-wise reporting of all deductions |
| TDS Matching | Basic verification | Must match Form 26AS and AIS exactly |
| Foreign Asset Disclosure | Optional/Minimal | Full disclosure mandatory |
| Business Income | Limited details | Clear separation of expenses and income |
| Capital Gains Reporting | Summary data | Complete data with dates and asset details |
How to Use This Deadline Extension Wisely
Here’s how I’m personally making use of the extended deadline—and you can too:
1. Start Organizing Documents Early
I’ve collected salary slips, insurance premiums, donation receipts, bank statements, and ELSS statements. This prep takes time but pays off in the end.
2. Match TDS Entries with Form 26AS
Before submitting anything, ensure your employer or bank has correctly updated all TDS entries on the income tax portal.
3. Identify the Correct ITR Form
Use ITR-1 if you are salaried with one house property. Use ITR-4 for presumptive income. The income tax website has a detailed guide.
4. Don’t Rush the Filing
Use this time to review your income and deductions carefully. Make sure your numbers match your AIS and Form 26AS. Any mismatch can lead to refund delays or scrutiny.
5. Ask for Help If Needed
Not sure about a section? It’s worth consulting a tax advisor or using a reputable online filing platform. This year’s forms leave little room for error.
What If You Still Miss the Deadline?
Even though the deadline is now September 15, missing it can lead to:
A late filing fee up to ₹5,000
Disqualification from carrying forward certain losses
Delayed refunds
Potential scrutiny from the tax department
If your income is below the taxable limit, you technically don’t need to file. But filing can still be useful to claim refunds, prove income for visas or loans, and maintain a good compliance history.
Is This the Easiest Tax Season Yet?
In many ways, it can be. The new forms might seem tougher, but they are actually designed to make things easier in the long run. The level of transparency they demand means fewer surprises and faster refunds—provided we take the time to do things right.
This year, I plan to complete my filing well before the deadline. I’ve already created a simple checklist, and if you want, I can share it with you. Just drop a comment or message.
Let’s use this deadline extension not as a reason to delay, but as an opportunity to file better.
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