ITR filing deadline extended to Sept 15: Penalty, tax slabs, other key details to know

The Central Board of Direct Taxes (CBDT) has extended the last date to file income tax returns (ITRs) for the financial year 2024–25 (assessment year 2025–26) from July 31 to September 15, 2025. 

The extension applies to individual taxpayers who are not required to get their accounts audited, such as salaried employees, pensioners, and non-resident Indians.

No Penalty on Self-Assessment Tax Before Revised Deadline

With the ITR due date officially revised under Section 139(1) of the Income Tax Act, no penal interest will be levied under Section 234A, as long as both the return and the self-assessment tax are submitted by September 15, said reports.

Section 234A generally imposes a 1 percent monthly interest on unpaid self-assessment tax if the return is filed after the due date. However, when the due date itself is extended, the interest clause does not apply until after the revised deadline.

This means that taxpayers who clear their outstanding tax dues and file returns by the new deadline will not be charged interest for late filing. The extension provides breathing space, particularly in light of delays in the rollout of return filing utilities.

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Advance Tax Penalties Still Apply

Despite the relaxation under Section 234A, there is no exemption from penal interest under Sections 234B and 234C. These provisions relate specifically to advance tax payments, which must be made in quarterly instalments throughout the financial year.

If at least 90 percent of the advance tax is not paid by March 31, Section 234B imposes interest at 1 percent per month on the shortfall. Section 234C adds similar interest charges for underpayment or late payment in any of the quarterly due dates in June, September, December, and March.

These penalties are calculated independently of the ITR filing due date. The extension to September 15 does not affect their applicability, and taxpayers who missed their advance tax deadlines will continue to incur monthly interest.

Key Takeaways for Taxpayers

The extension brings clarity on the timeline for filing returns and paying self-assessment tax. Returns filed after July 31 but before September 15 will be treated as filed on time, provided any remaining tax dues are also paid within this window. Interest under Section 234A will be charged only if the payment or filing occurs after the new deadline.

However, taxpayers who failed to pay advance tax or paid less than the required amount by the quarterly deadlines will continue to face interest charges under Sections 234B and 234C, regardless of the extension.

Current Income Tax Slabs for FY 2024–25

Under The Old Tax Regime:

• Up to Rs 2.5 lakh: Nil

• Rs 2.5 lakh to Rs 5 lakh: 5%

• Rs 5 lakh to Rs 10 lakh: 20%

• Above Rs 10 lakh: 30%

For senior citizens (60–80 years), the basic exemption is Rs 3 lakh. For those above 80, it increases to Rs 5 lakh. A standard deduction of Rs 50,000 is also available.

Under The New Tax Regime:

• Up to Rs 3 lakh: Nil

• Rs 3 lakh to Rs 7 lakh: 5% (with tax rebate under Section 87A)

• Rs 7 lakh to Rs 10 lakh: 10%

• Rs 10 lakh to Rs 12 lakh: 15%

• Rs 12 lakh to Rs 15 lakh: 20%

• Above Rs 15 lakh: 30%

A standard deduction of Rs 50,000 is available under the new regime as well, which will rise to Rs 75,000 from FY 2025–26.