New ITR Deadline Extended to September 15: But Will You Still Pay Penalty on Self-Assessment Tax?

New Delhi, June 24, 2025 — In a welcome relief to salaried taxpayers, pensioners, and NRIs, the Income Tax Department has extended the ITR filing deadline for FY 2024–25 (AY 2025–26) from July 31 to September 15, 2025. However, one key question remains unanswered for many: Does this extension also delay the penalty on Self-Assessment Tax?

Let’s unpack the rules to understand what’s changed—and what hasn’t.

📅 What Has Changed?

The Central Board of Direct Taxes (CBDT) has officially extended the last date to file your Income Tax Return (ITR) to September 15, 2025, for individuals who do not require a tax audit. This includes:

• Salaried individuals

• Pensioners

• Non-resident Indians (NRIs)

But this extension applies only to the ITR filing date. The rules related to Self-Assessment Tax, Advance Tax, and penalty interest under Sections 234A, 234B, and 234C still apply with certain caveats.

💰 What Is Self-Assessment Tax?

Self-Assessment Tax is the amount you owe after deducting:

• TDS (Tax Deducted at Source)

• TCS (Tax Collected at Source)

• Advance Tax

This balance tax needs to be paid before filing your ITR. If not paid on time, it attracts interest under Section 234A of the Income Tax Act.

⚠️ What Happens If You Miss the Original July 31 Deadline?

Under normal circumstances, if your ITR and Self-Assessment Tax are not filed by July 31, you're liable to pay 1% interest per month on the unpaid tax amount under Section 234A.

But here’s the good news: since the filing deadline has officially been extended to September 15, you won’t be charged any interest under Section 234A if both your ITR and Self-Assessment Tax are submitted by then.

This position is legally supported by:

• Supreme Court ruling in CIT vs. Prannoy Roy (2009)

• CBDT Circular No. 2/2015, which clarifies that interest under 234A applies only beyond the extended due date

🧮 What About Advance Tax Penalties?

While the relief under Section 234A is available till September 15, the Advance Tax rules under Sections 234B and 234C remain unchanged. These sections impose interest if:

• You did not pay 90% of your total tax as Advance Tax

• You underpaid or missed the quarterly deadlines for Advance Tax

Even if the ITR deadline is extended, interest under 234B and 234C will still apply, and you’ll be charged 1% per month on the shortfall.

✅ Summary: What You Need to Know

Component	New Deadline	Penalty Applicability
ITR Filing	September 15, 2025	No penalty if filed on or before deadline
Self-Assessment Tax	September 15, 2025	No penalty under 234A if paid by deadline
Advance Tax (234B, 234C)	Not extended	Penalty still applies if payment delayed

📌 Key Takeaway

If you’re a salaried employee or NRI and haven’t filed your ITR yet, you now have time until September 15, 2025, without incurring a 234A penalty, provided you pay any outstanding Self-Assessment Tax by the same date.

However, if you failed to pay Advance Tax on time earlier this year, you’ll still be liable for interest under Sections 234B and 234C, regardless of the ITR extension.

To avoid further interest or penalty:

• Calculate your total tax liability

• Pay Self-Assessment Tax (if any) immediately

• File your ITR by September 15