“The notified ITRs for AY 2025-26 have undergone structural and content revisions aimed at simplifying compliance, enhancing transparency, and enabling accurate reporting. These changes have necessitated additional time for system development, integration, and testing of the corresponding utilities,” a statement from CBDT said.
Also read | How to file Income Tax Returns? Step-by-step guide on ITR filing, documents required
“Furthermore, credits arising from TDS statements, due for filing by 31st May 2025, are expected to begin reflecting in early June, limiting the effective window for return filing in the absence of such extension,” it added.
The department said this extension will provide more time due to significant revisions in ITR forms, system development needs, and TDS credit reflections. It also ensures a smoother and more accurate filing experience for everyone.
CBDT said a formal notification to this effect will be issued shortly. “This extension is expected to mitigate the concerns raised by stakeholders and provide adequate time for compliance, thereby ensuring the integrity and accuracy of the return filing process,” it added.
Also read | Inter-state fake billing nexus busted: 2 held in ₹13.41 crore GST evasion case
Earlier this month, CBDT introduced the new ITR Form 5 for AY 2025-26 with key changes. Notable revision was the introduction of a split within the Schedule-Capital Gain, mandating taxpayers to report capital gains before and after July 23rd, 2024.
Also read | CBDT to closely monitor top taxpayers, crack down on bogus deductions
New changes allowed for the conditional reporting of capital losses incurred during share buybacks. This is applicable when the corresponding dividend income from these buybacks is being declared as “income from other sources,” particularly for transactions occurring after October 1st, 2024.
The new Form 5 has a specific reference to section 44BBC of the Income Tax Act and requires specifying the Tax Deducted at Source (TDS) section code within Schedule-TDS.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.