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The government has extended the deadline for filing Income Tax Returns (ITR) from July 31 to September 15, 2025, offering relief to millions of taxpayers who were struggling to file their returns on time. While this move gives taxpayers more time to prepare their filings, the Ministry of Finance reports that, as of now, only less than 40% of the returns filed have been processed, leaving over 60% of ITRs still pending. This means a large number of taxpayers are still waiting for their refunds and other updates, causing significant concern.

Why the Delay in ITR Processing?

Tax experts have pointed out that while the extended deadline offers some breathing room for taxpayers, the slow processing of returns is still a major issue. Despite the extra time given, many taxpayers will likely experience delays in receiving their refunds and updates. The primary reason behind this delay is the overwhelming volume of returns that need to be processed by the Income Tax Department. Even with technological advancements, the sheer number of ITR filings has placed immense pressure on the system.

How Does This Affect Taxpayers?

For those who have filed their returns, waiting for their refunds can be a source of frustration. The delay also affects those hoping to get updates on any corrections or other modifications to their filed returns. Many taxpayers rely on these updates to plan their financial goals, whether it's investing in tax-saving instruments or making big purchases.

Government's Call to Action

The government, aware of these concerns, has urged taxpayers not to wait until the final days to file their returns. While the extended deadline offers some leeway, experts suggest that filing your returns well before the deadline is the best way to avoid unnecessary delays. By filing early, taxpayers not only help ease the pressure on the system but also increase their chances of getting quicker processing and refunds.

What Are the Challenges in Processing ITR?

Despite advancements in digital filing and tax processing systems, there are still several bottlenecks in the system that contribute to the slow pace of return processing. These issues can be attributed to:

1. High volume of filings: With millions of returns to process, the sheer scale of operations often leads to delays, especially during peak filing seasons.

2. Systematic errors and discrepancies: Sometimes, returns face processing delays due to minor errors or discrepancies that require manual intervention, adding time to the process.

3. Complex returns: Taxpayers with complex filings, such as those claiming deductions, exemptions, or dealing with business income, often experience more delays, as these returns require more detailed scrutiny.

The Benefits of Filing Early

By filing your returns early, you can avoid the last-minute rush and reduce the chances of facing processing delays. Early filing also allows for:

• Faster refund processing: If you’re expecting a refund, filing earlier increases your chances of receiving it sooner.

• Error-free returns: Filing early gives you time to double-check your returns, ensuring there are no mistakes that could lead to delays.

• Peace of mind: Submitting your return well before the deadline can help you avoid any last-minute stress or penalties.

Conclusion: Stay Ahead of the Deadline

While the government has extended the ITR filing deadline, the slow processing rate indicates that the Income Tax Department still faces significant challenges. Taxpayers are advised to take advantage of the extra time by filing their returns as early as possible to ensure a smoother process and avoid unnecessary delays.

If you haven’t filed your returns yet, now is the time to do so. Waiting until the last minute might leave you in a difficult position when it comes to refunds and updates. Stay ahead, and file your ITR today!