ITR Form Delay AY 2025-26: What You Need to Know
The Income Tax Return (ITR) form delay for AY 2025-26 is drawing serious concern from professionals and taxpayers alike. With July fast approaching, the Central Board of Direct Taxes (CBDT) has still not released several ITR utilities, especially for businesses and professionals. This delay is now impacting essential processes like visa applications, loan approvals, and working capital cycles.
What’s Happening? Who Raised the Issue?
The All India Professionals’ Congress (AIPC) has written to Finance Minister Nirmala Sitharaman requesting immediate intervention.
Key Points from AIPC’s Letter:
- This is the first time in a decade that such a delay has occurred.
- Professionals are unable to file returns or finalise accounts, stalling business activity.
- Taxpayers applying for visas, student admissions, or bank loans are facing rejections due to lack of ITR proof.
- Startups and SMEs are unable to avail of working capital loans or show income for credit lines.
Status of ITR Forms for AY 2025–26
| ITR Form | Status (as of July 1, 2025) | Applicable Taxpayers |
|---|---|---|
| ITR-1 & ITR-4 | Utilities released (Notification No. 40/2025) | Salaried, Pensioners, Small Businesses |
| ITR-2 | Not yet released | HNIs, House Property Owners |
| ITR-3 | Pending | Business/Professional Income |
| ITR-5 | Delayed | LLPs, Firms, AOPs |
| ITR-6 | Still awaited | Companies (Non-charitable) |
| ITR-7 | Notified but Utility Delayed | Trusts, NGOs |
✅ Notification Reference: CBDT Notification No. 40/2025 dated 29.04.2025
Why Is This Delay a Big Deal?
- Compliance Pressure: Many businesses close their books in April–May. Delays in ITR utilities disrupt financial closure.
- Loan & Credit: Banks require ITR for assessing loan eligibility.
- Visa & Overseas Study: ITR acknowledgments are mandatory for visa processing—especially for countries like the US, Canada, UK.
- Statutory Audit Delays: LLPs and companies awaiting ITR-5/6 cannot finalise audit or file ROC forms.
Legal & Policy Angle
- Section 139(1) of the Income-tax Act requires filing returns by 31st July (now extended to 15th September 2025 via CBDT Circular No. 6/2025).
- However, delays in utility release indirectly eat into this extension.
Expert View: A Wake-Up Call for CBDT?
“This is not just a technical delay. It affects the economy at multiple touchpoints — from startups raising funds to families planning foreign education. Utility release should be time-bound,”
— A CA firm partner from Bengaluru (name withheld)
What Can Taxpayers Do Now?
- Stay updated via the Income Tax e-filing portal
- Prepare financials and tax data in advance so that once the utility is released, filing can be done quickly.
FAQs
Q1: Why are ITR forms delayed this year?
CBDT is expected to align forms with the new tax regime and AIS/TIS systems. But no official reason for the delay has been shared.
Q2: Is the due date extended?
Yes. The due date under Section 139(1) for non-audit taxpayers has been extended to 15th September 2025.
Q3: Can I file using old ITR utilities?
No. Each AY requires new utilities notified for that assessment year.
Final Thoughts
The ITR form delay for AY 2025–26 is more than just a technical hiccup—it is impacting real people, real businesses, and real opportunities. While the due date has been extended, the delay in ITR utility release creates avoidable stress for taxpayers. The Finance Ministry and CBDT must treat this as a high-priority issue.
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Summary
AIPC urges FM to act as taxpayers face issues with loans, visas, and audits. Efiletax breaks down the impact and next steps.