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While the extension offers relief for self-assessment tax, there is no exemption from interest under Sections 234B and 234C.
Income Tax deadline extended to Sept 15 from July 31.
ITR Deadline 2025: In a major relief to individual taxpayers, the Central Board of Direct Taxes (CBDT) has extended the deadline for filing Income Tax Returns (ITRs) for the financial year 2024-25 (assessment year 2025-26) from July 31, 2025, to September 15, 2025. The extension applies to individuals not required to get their accounts audited, including salaried employees, pensioners, and NRIs.
No Penalty on Self-Assessment Tax if Paid by September 15
Tax experts confirm that with the extension of the ITR due date under Section 139(1), no interest under Section 234A will be charged if both the return and the self-assessment tax are paid on or before September 15, 2025.
Tarun Garg, Director at Deloitte India, told ET that since the due date has been officially revised, the same will apply for calculating interest under Section 234A. This view is supported by earlier Supreme Court rulings and CBDT Circular No. 2/2015.
Tarun Kumar Madaan, a practising Chartered Accountant, said to ET that CBDT Circular No. 6/2025 does not mention any exclusion for Section 234A, suggesting that taxpayers will not have to pay interest if returns and dues are cleared by the new deadline.
Advance Tax Penalty Still Applies
While the extension offers relief for self-assessment tax, there is no exemption from interest under Sections 234B and 234C. These sections relate to advance tax payments, and the penal interest of 1% per month continues to apply if taxpayers have underpaid or delayed these installments.
Madaan clarified that these penalties are independent of the ITR filing date, and the extension has no bearing on their applicability.
A team of writers and reporters decodes vast terms of personal finance and making money matters simpler for you. From latest initial public offerings (IPOs) in the market to best investment options, we cover al…Read More
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