Taxpayers across india were hoping for an extension of the Income Tax Return (ITR) filing deadline to september 30, 2025. However, the government only provided a 24-hour relief (till september 16) and refused to push it any further. Here are the 4 main reasons behind this decision.
🏛️ 1. Avoiding Revenue Collection Delays
The government collects advance tax and income tax in a phased manner. Extending deadlines would delay direct tax revenue inflow, which could impact budgetary planning and public expenditure. The Centre wants to maintain cash flow for developmental projects, salaries, and welfare schemes.
📊 2. Higher Compliance Rate Already Achieved
According to the CBDT (Central Board of Direct Taxes), a record number of ITRs had already been filed by september 15. The government felt there was no need for a longer extension since most taxpayers had complied with the deadline.
⏳ 3. Discouraging Last-Minute Culture
Every year, many taxpayers wait till the last day to file returns, causing portal slowdowns and server issues. The government wants to promote a habit of timely compliance, rather than encouraging procrastination by giving repeated extensions.
💻 4. Portal Stability and Capacity Improvements
This year, the Income Tax e-filing portal witnessed smooth performance with minimal downtime. Since there were no major technical glitches, the government did not find a strong reason to extend the deadline further, unlike in previous years when technical failures forced longer extensions.
✅ Final Takeaway
The government’s stance is clear — timely compliance is the new normal. Taxpayers are advised not to wait until the last minute and file their returns early in future assessment years. This helps avoid late fees, interest under Sections 234A/234F, and portal rush on the final day.
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