ITR Filing 2025: What Does the Extended Deadline Mean for Individuals Opting for Self-Assessment and Advance Tax Payment?

The Income Tax Department has extended the due date to file Income Tax Returns (ITRs) for the financial year 2024-25 (assessment year 2025-26). The last date, which was earlier July 31, 2025, has now been extended to September 15, 2025. This change applies to taxpayers who do not need to get their accounts audited, such as salaried individuals, pensioners, and NRIs.

ITR Filing 2025: Understanding Self-Assessment Tax and Section 234A

Self-assessment tax is the amount a taxpayer must pay after adjusting for TDS (Tax Deducted at Source), TCS (Tax Collected at Source), and advance tax. Typically, if you file your ITR after the due date and pay self-assessment tax late, interest under Section 234A is charged.

However, since the due date for filing ITR has now been officially extended to September 15, 2025, taxpayers will not be charged interest under Section 234A if:

• The return is filed by September 15, 2025, and
• The full self-assessment tax is also paid by that date.

This means that for this year, the deadline for both filing the return and paying self-assessment tax without penalty is now September 15, 2025.

Advance Tax and Penal Interest

While the relief applies to self-assessment tax, there is no change in rules for advance tax. Taxpayers are still required to pay advance tax as per the scheduled dates. If they fail to pay it fully or on time, they will have to pay penal interest under Sections 234B and 234C.

These sections charge interest at 1% per month for delays or shortfall in payment of advance tax. This penalty is independent of the ITR filing due date, and the extension to September 15 does not affect it.

ITR Filing 2025: How Much Interest Will Be Charged on Late Payment?

If a taxpayer pays the self-assessment tax after September 15, 2025, they will be liable to pay interest at 1% per month on the unpaid amount. This is as per the usual rule under Section 234A.

Read more: ITR Filing 2025: How to Pay Zero Tax on ₹15.5 Lakh Annual Income.

Conclusion

The extension of the ITR filing deadline to September 15, 2025, is good news for many taxpayers. It allows more time to file returns and pay any pending self-assessment tax without penalty. However, this extension does not apply to advance tax payments, and penalties under Sections 234B and 234C will still apply for delays or shortfalls. Taxpayers should keep these points in mind to avoid extra charges.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.