No extension for ITR filing deadline amid portal glitches, record submissions

As the clock ticks down on the final day for filing Income Tax Returns (ITRs) for the assessment year 2025-26, the Income Tax Department has reiterated that there will be no extension beyond 15 September 2025. This deadline applies to individuals, Hindu Undivided Families (HUFs), and other entities not requiring audits for income earned in the financial year 2024-25.

The department has dismissed rumours of a further postponement to 30 September as "fake news," urging taxpayers to rely solely on official communications via its X handle @IncomeTaxIndia. With over seven crore ITRs already submitted, the focus is now on the remaining filers amid reports of technical issues on the e-filing portal.

Confirmation of no deadline extension

The Central Board of Direct Taxes (CBDT) extended the original deadline from 31 July 2025 to 15 September earlier this year to accommodate updates to ITR forms and utilities, which incorporated changes to tax slabs under the new regime and improved integration with the Annual Information Statement (AIS).

However, despite calls from tax professionals and chartered accountants for further deferral, the department has stood firm. In a statement late on 14 September, it clarified that the portal is operational and capable of handling the surge in traffic. Taxpayers have been warned against circulating misinformation, with the department emphasising that the due date remains unchanged.

Professional bodies, including the Bombay Chartered Accountants' Society (BCAS) and regional associations like the Income Tax Bar Association in Raipur, have petitioned the Finance Ministry for extensions up to October or December, citing late utility releases, portal downtime, and external factors such as floods in Punjab and heavy monsoon rains across northern parts of the country.

These pleas highlight the compressed filing window, with utilities for forms like ITR-5 and ITR-6 only becoming available in July, leaving less than two months for the bulk of submissions. 

Chartered accountants have argued that the current timeline undermines accurate compliance, potentially leading to erroneous returns that would require revisions post-deadline.

Surge in filings, record numbers

By midday on 15 September, the Income Tax Department reported that more than seven crore ITRs had been filed for AY 2025-26, surpassing previous benchmarks and reflecting a growing tax base. This represents a notable increase from the 7.28 crore returns filed by 31 July last year for AY 2024-25, indicating a 7.5% year-on-year growth in voluntary compliance. The department attributes this to digital enhancements, including pre-filled forms and seamless data from Form 26AS and AIS, which have streamlined the process for many.

However, with an estimated 13.34 crore registered users on the portal, projections suggest that up to three crore returns were still pending as of early September, putting immense pressure on the system in the final week. Tax experts have noted that this volume equates to roughly one crore filings per day in the closing stretch, a pace that strains both users and infrastructure.

The festive season, overlapping deadlines for advance tax payments, and other statutory compliances have further compounded the challenge.

Reports of portal glitches, user frustrations

Despite the department's assurances, widespread complaints have emerged about technical glitches on the incometax.gov.in portal. Users, including chartered accountants and small business owners, have reported slow loading times, login failures, errors in form validation, and difficulties accessing AIS, Tax Information Statement (TIS), and Form 26AS.

On X, formerly Twitter, taxpayers have flooded the platform with grievances, with hashtags like #ExtendDueDateImmediately and #ITRPortal trending.

Specific issues include automatic logouts, payment processing delays, and mismatches in pre-filled data, exacerbating last-minute anxiety.

One X user highlighted the portal's inability to handle high traffic, comparing it unfavourably to the previous TCS-managed system, which reportedly processed 50 lakh returns without issues. Others shared screenshots of error messages and called for accountability from Infosys, the current vendor.

The department has responded by advising troubleshooting steps, such as clearing browser caches, using incognito mode, or switching networks, and offering 24/7 support via helplines, live chats, and WebEx sessions.

Penalties and options for late filers

Missing the deadline incurs penalties under Section 234F: Rs 5,000 for most taxpayers, reduced to Rs 1,000 if taxable income is below Rs 5 lakh. Additionally, interest at 1% per month on unpaid taxes accrues from 1 August under Section 234A. Belated returns can be filed until December 31, with these fees, and updated returns are permitted until March 31, 2026, for corrections, although they cannot increase tax liability.

For those still filing, the process involves selecting the appropriate form—ITR-1 for simple salaried incomes up to Rs 50 lakh, or ITR-2 for those with capital gains—and verifying data against AIS and Form 26AS. The new tax regime, with simplified slabs but fewer deductions, has been adopted by over 60% of filers this year. Taxpayers are advised to upload returns even if e-verification is delayed, as it can be completed within 30 days.

Broader implications for tax administration

This ITR season underscores the push towards digital taxation, with faceless assessments and AI-driven audits boosting efficiency. Yet, persistent infrastructure challenges highlight the need for a more robust portal, perhaps with enhanced load-balancing capabilities. 

As the economy grows at a projected 7% for 2025-26, expanding the tax net is vital for funding public services. The current crunch, influenced by natural disasters and festive overlaps, has sparked debates on easing compliance burdens to foster trust.

With the deadline imminent, the Income Tax Department's message is clear: file promptly to avoid penalties. While the portal remains amid complaints, this episode reveals the tensions in balancing technological ambition with practical realities in the tax ecosystem.