The countdown has begun. As the extended deadline for filing Income Tax Returns (ITRs) for the financial year 2024–25 (AY 2025–26) ends on September 15, nearly 1 crore income tax returns are expected to be filed on the final day. Last year, the e-filing portal processed nearly 70 lakh returns in just 24 hours and a similar rush is underway this year. But mounting glitches, overlapping deadlines, and slow speed have created hurdles for taxpayers and chartered accountants.
This frustration is now spilling over to social media, where #duedateextension is trending on X as taxpayers, professionals demand more time. Users have been sharing screenshots of portal errors, delayed uploads of forms amplifying demand for the relief.
"It is imperative that the government seriously considers extending this due date to ensure taxpayers can fully comply without undue hardship. Introduction of a detailed and complex system for submitting deduction particulars demands significant effort and time from taxpayers, especially salaried individuals and small businesses," said Kanyakumari-based chartered accountant Sundararajan S.
In addition, the revised and complicated compliance requirements around reporting of Long Term Capital Gains (LTCG) and Short Term Capital Gains (STCG) have increased the filing complexity notably, added Sundararajan.
So far, 6.29 crore returns have been filed for AY 2025–26 (till September 13, 2025), against 7.28 crore returns filed in total for AY 2024–25. With ITR filings registering a steady growth — 6.77 crore in AY 2023–24, 5.82 crore in AY 2022–23, and 5.77 crore in AY 2021–22 — the number could cross 7.8 crore this year if the pace holds up. Experts say this consistent rise reflects both improved compliance and a widening tax base.
“Last year, we managed to file nearly 100 ITRs on the final day. This time, we’ve only been able to file around 30-40 so far. The slow income tax portal is proving to be a major hurdle. Compared to last year, when the process was much smoother, the experience this year has been far more difficult,” said Himank Singla, Founding Partner, SBHS & Associates.
“If we are unable to complete the filings today and the deadline isn’t extended, taxpayers will face an additional late fee of up to Rs 5,000 starting tomorrow,” added Singla.
Taxpayers this year are struggling on two fronts: filing ITRs and paying the second installment of advance tax, which is also due on September 15. By September 15, taxpayers are required to pay 45 percent of their total tax liability as advance taxes, if applicable. Failure to do so can result in penalties under section 234C of the Income Tax Act, 1961. “Payment of the second installment of advance tax is stuck, which means penal interest will be levied on taxpayers for no fault of theirs,” said Singla.
Chartered accountants argue that the late release of ITR utilities and persistent portal issues have left them with little time, while the Central Board of Direct Taxes (CBDT) has replied that the system is stable and most glitches are browser-related.
What happens if you miss the ITR deadline today?
Even if you miss today’s deadline, you can still file a belated return by December 31, 2025. Beyond that, taxpayers who miss this window may still file an updated return, subject to certain conditions. However, delaying your ITR comes at a cost in the form of late fees and interest.
1. Section 234F: Late Filing Fees
If you fail to file your return by September 15, a mandatory late fee under Section 234F will apply. If your taxable income exceeds Rs 5 lakh, you will need to pay a penalty of Rs 5,000. If your taxable income is below Rs 5 lakh, the penalty is capped at Rs 1,000. This late fees is in addition to your normal tax liability.
2. Section 234A: Interest for Delayed Filing
Once the due date passes, interest under Section 234A kicks in. This applies if you have unpaid tax liability at the time of filing. Interest is charged at 1% per month (or part of the month) on the unpaid tax amount, calculated from September 16 until the date of actual filing.
3. Section 234B: Interest for Non-Payment or Short Payment of Advance Tax
Taxpayers with advance tax liability of more than Rs 10,000 in a year are required to pay advance tax in instalments. If you did not pay at least 90% of your total tax liability by March 31, 2025, interest under Section 234B will apply. The charge is 1% per month (or part thereof) from April 1, 2025, until the date of actual payment or the filing of ITR, whichever is earlier.
4. Section 234C: Interest for Deferment of Advance Tax Instalments
If you missed the quarterly deadlines or paid less than required, interest under Section 234C applies. The law mandates four instalments during the year, and shortfalls in any instalment attract 1% per month interest for three months (for June, September, December instalments) or for one month (for the March instalment).
Additionally, if you are eligible for a refund, you may lose part of the interest on that refund for the period of delay attributable to you. Filing after the due date also prevents you from carrying forward certain losses (like business or capital losses) for set-off against future income.
What is financial year? What is assessment year?
Financial Year (FY) is the year (April 1 to March 31) in which you earn your income. Assessment Year (AY) is the following year in which that income is assessed and taxed, and you file your ITR.
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