The Income Tax Act of 1961 is Replaced: What You Need to Know About the New SIMPLE Law

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ITR Filing Deadlines Under the New Income Tax (No. 2) Bill 2025: What You Need to Know

The Income Tax (No. 2) Bill 2025 is set to redefine the landscape of tax filing in India. After receiving presidential assent, this landmark legislation will replace the 1961 Act, bringing significant changes, including revised deadlines for filing Income Tax Returns (ITR).

When Does the New Bill Take Effect?

The new law will come into effect from April 1, 2026. This means taxpayers will follow the new rules and deadlines when filing their returns for the financial year 2026-27 and subsequent years.

For now, taxpayers should be aware of the extended deadlines for filing returns for FY 2024-25 (AY 2025-26).

ITR Filing Deadlines for FY 2024-25 (AY 2025-26)

  • September 15, 2025: This is the new due date for most salaried individuals and other taxpayers who are not subject to a tax audit.
  • December 31, 2025: If you miss the September 15 deadline, you can still file a belated return by this date.

Future ITR Filing Deadlines Under the New Bill (from FY 2026-27 onwards)

The new bill establishes clear, simplified deadlines based on the type of taxpayer and whether they are subject to an audit.

  • July 31: This remains the deadline for the majority of taxpayers, including salaried individuals and those not requiring an audit.
  • October 31: This is the deadline for companies, firms, their partners, and any other person whose accounts are required to be audited.
  • November 30: This date is for assessees, including partners of a firm or the spouse of such a partner, who are required to furnish a report related to international or specific domestic transactions (as per Section 172).

Key Highlights of the New Income Tax Bill 2025

Finance Minister Nirmala Sitharaman hailed the bill as a “milestone for the country’s financial system.” The legislation introduces several taxpayer-friendly reforms:

  • Simplified Structure: The bill significantly reduces the number of sections from 819 to 536 and chapters from 47 to 23. The total word count has been slashed from 5.12 lakh to just 2.6 lakh.
  • Standard Deduction Clarity: It clarifies the standard deduction of ₹75,000 for salaried individuals under the new tax regime.
  • Flexibility for Refunds: The bill removes the strict requirement to file on time to claim a refund, giving taxpayers more flexibility.
  • Modernization: It replaces dense text with 39 new tables and 40 new formulas, using a modern, structured format for enhanced clarity.
  • New Exemptions: The bill provides tax exemptions for payments from the National Pension System Trust to subscribers of the Unified Pension Scheme and for certain investments by sovereign wealth funds and pension funds.
  • Record Drafting Time: The bill was drafted in a record six months, involving approximately 75,000 person-hours.

Which ITR Form Should You Use?

The type of ITR form you need to file depends on your income sources:

  • ITR-1 (Sahaj): For individuals with income from salary, one house property, and other sources.
  • ITR-2: For individuals or Hindu Undivided Families (HUF) with income from capital gains, more than one house property, or foreign assets, but without business income.
  • ITR-3: For individuals or HUFs with income from a business or profession.
  • ITR-4 (Sugam): For those with business or professional income calculated under the presumptive taxation scheme.

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