The Income Tax Department has extended the deadline for filing Income Tax Returns (ITR) for the financial year 2024-25 to September 15, 2025. This extension applies to salaried individuals, pensioners, non-resident Indians (NRIs), and non-audit cases. The new deadline also provides a crucial benefit: it waives the penal interest under Section 234A for late payment of self-assessment tax (SAT), as long as both the ITR and SAT are submitted by September 15, 2025.
Understanding Self-Assessment Tax (SAT)
Self-assessment tax is the remaining tax amount a taxpayer owes for a financial year after accounting for all advance tax payments and taxes already deducted at source (TDS). In simple terms, it’s the final tax liability that must be settled before you file your ITR.
The extension clarifies a key point of confusion: while the ITR deadline has been pushed back, the penalties for failing to pay or underpaying advance tax remain unchanged. Advance tax, which is mandatory for taxpayers with an estimated tax liability over ₹10,000, must be paid in quarterly installments throughout the financial year.
Penalties and Interest
- Section 234A: This section deals with interest on late filing of ITR. Due to the extension, this 1% per month interest will not be charged if you file your return and pay your SAT by the new September 15, 2025 deadline.
- Section 234B & 234C: These sections impose interest for defaults in advance tax payments. These penalties are not affected by the ITR deadline extension.
- Section 234B applies if less than 90% of your total tax is paid as advance tax.
- Section 234C applies if you miss or underpay any of the quarterly advance tax installments.
Key Deadlines to Remember
- ITR Filing (FY 2024-25): September 15, 2025
- Self-Assessment Tax Payment: September 15, 2025 (to avoid Section 234A interest)
- Advance Tax Installments (FY 2024-25):
- June 15, 2024
- September 15, 2024
- December 15, 2024
- March 15, 2025
The extension provides a welcome relief, offering taxpayers more time to organize their finances and ensure full compliance without incurring late-filing interest.