ITR Filing 2025 | File ITR for AY 2025-26 | Income Tax Return filing update

Summary

The video discusses the delay in ITR filing for the 2025-26 assessment year, caused by late form releases and technical issues. The responsibility lies primarily with the Central Board of Direct Taxes (CBDT) and Infosys, which manages the portal. Major amendments in the Finance Act 2024, especially regarding capital gains, contributed to the delay. The ITR filing is expected to begin in the first week of June, with a recommendation to file after June 15 to ensure all TDS data is correctly reflected. The speaker also advocates for an extension to account for the delay caused by the government.

Takeaways

• 😀 The ITR filing for Assessment Year 2025-2026 has been delayed, and no ITRs have been filed yet due to the forms not being available on the portal.
• 😀 The Central Board of Direct Taxes (CBDT) is responsible for the delay, as they issued the ITR forms later than expected.
• 😀 Infosys handles the technical side of the Income Tax portal, but since the forms were delayed, the filing process has also been delayed.
• 😀 Last year, ITR forms were available by January 2024, but in the current year, the forms were only released in May, affecting the timeline for filing.
• 😀 The Finance Act 2024 brought significant amendments, particularly in capital gains tax reporting, contributing to the delay in finalizing the ITR forms.
• 😀 The government wants to avoid the mistakes made last year when an error in the utility caused issues with ITR processing. This is why they are taking extra time to ensure everything is correct.
• 😀 The government manages funds and processes more efficiently by delaying ITR filing and processing, as it helps in managing refunds more smoothly.
• 😀 ITR filing is expected to begin in the first week of June 2025.
• 😀 It’s advised to file ITR after June 15, once Form 26AS and AIS are fully updated with TDS data to avoid processing delays or issues with refunds.
• 😀 Taxpayers should ensure that their TDS credits are fully reflected in Form 26AS and AIS before filing ITR to avoid complications with tax processing.
• 😀 The speaker argues that taxpayers should receive an extension equivalent to the delay caused by the government, as it is the government’s delay and not the taxpayers' fault.

Q & A

Why has the ITR filing for the assessment year 2025-26 been delayed?

The delay in ITR filing is primarily due to the late release of forms by the Central Board of Direct Taxes (CBDT). This delay resulted in the technical utility, managed by Infosys, not being ready for filing.

When did ITR filing begin for the assessment year 2024?

For the assessment year 2024, ITR filing began by May, as more than 30 lakh ITRs had been filed by the end of May.

What are the main causes of the delay in this year's ITR filing?

The main causes of the delay include the late release of income tax forms by the CBDT, significant amendments in the Finance Act 2024, and the need for proper processing to avoid errors from previous years.

How did the Finance Act 2024 contribute to the delay in ITR filing?

The Finance Act 2024 introduced significant amendments, including changes in the reporting of capital gains, which caused the forms to be delayed as they needed to accommodate these updates.

What was the issue with ITR filing in June 2024?

In June 2024, a mistake in the income tax utility was discovered, which led to errors in millions of ITRs. This forced the government to take extra time to ensure the utility and forms were accurate.

Why is it important to wait until after June 15 to file ITR?

It is important to wait until after June 15 because, by that time, Form 26AS and AIS will be fully updated with TDS data for the entire year, ensuring that the correct data is reflected in the ITR filing.

When is the ITR filing expected to start for the assessment year 2025-26?

ITR filing for the assessment year 2025-26 is expected to start in the first week of June.

Why does the government delay the ITR filing process?

The government may delay the ITR filing process to manage funds effectively, as processing refunds quickly could strain the system. This allows for more accurate processing and avoids errors or rush.

What should taxpayers do before filing their ITR?

Before filing, taxpayers should ensure their Form 26AS and AIS are fully updated with TDS data, which will be finalized by June 15.

Do taxpayers have any rights regarding the delay in ITR filing?

Yes, taxpayers should be granted an extension to match the delay caused by the government in issuing the forms. Since the government is responsible for the delay, taxpayers should not be penalized and should receive an extension for the same period.