The Income Tax Department plays a crucial role in collecting revenue from individuals and businesses through Income Tax Returns (ITR). Every year, a deadline is set for filing ITRs, ensuring timely compliance and proper management of the tax system. For the current assessment year, the department had already extended the due date till 15th September, giving taxpayers additional time to complete the process.

Yet, despite this relaxation, many taxpayers failed to file their returns on time. Now, some are requesting yet another extension from the government. This raises an important question: Why do people miss deadlines even after getting extra time, and what can be done about it?

Habitual Delay: A Widespread Problem

Human psychology plays a major role in tax compliance. Many individuals tend to procrastinate on tasks they find complex or unpleasant. Filing ITR involves documentation, calculation of income, declaration of investments, and sometimes consulting a tax expert. Instead of starting early, taxpayers often postpone the task until the very last moment.

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Example:
 Take the case of Ramesh, a salaried employee in Delhi. He received Form-16 from his employer in June but waited till September to even begin the filing process. When he logged into the income tax portal on the last day, the website was slow due to heavy traffic, and he failed to complete the submission. Despite having 3 months in hand, he missed the deadline because of poor planning.

Technical Glitches and Rush Hour Filing

Another major reason people miss deadlines is last-minute filing. When lakhs of taxpayers log in on the same day, the income tax portal experiences slowdowns. While the department has improved its IT systems significantly, heavy user load at the final hours still creates delays.

Case Study:
 In 2022, during the extended deadline period, the government reported receiving more than 1 crore ITRs in just 48 hours before the deadline. This clearly shows that most taxpayers wait till the last minute, causing unnecessary stress and portal overload.

Misunderstanding About Extensions

Many taxpayers assume that the government will extend the deadline again, as has been the case during COVID-19 and certain other years. This false expectation makes people careless. However, the department has clarified multiple times that extensions are given only under extraordinary circumstances and not as a regular practice.

Consequences of Missing the Deadline

Not filing ITR within the due date has several consequences:

  1. Late Fees and Penalties – Under Section 234F of the Income Tax Act, a late fee of up to ₹5,000 can be imposed.
  2. Interest on Tax Dues – Taxpayers who have outstanding taxes need to pay interest at 1% per month until filing.
  3. Loss of Carry Forward Benefits – Business losses or capital losses cannot be carried forward if ITR is filed late.
  4. Loan and Visa Delays – Banks and embassies often require ITR proof. Filing late can affect financial credibility.

Example:
 Priya, a freelancer, wanted to apply for a personal loan. The bank asked for the last 3 years’ ITR as proof of income. Since she missed filing on time last year, the process of loan approval was delayed, showing how timely compliance affects financial opportunities.

Why Another Extension is Unlikely

The Income Tax Department extended the date till 15th September to provide relief. Another extension is unlikely because:

  • Taxpayers already had sufficient time.
  • Continuous extensions discourage discipline.
  • The government wants to strengthen compliance culture.

Moreover, repeated extensions also affect the government’s revenue collection targets, since timely filing ensures smooth tax inflow.

A Lesson for the Future: Plan Ahead

The repeated requests for deadline extension highlight the need for better planning. Taxpayers can adopt the following practices:

  • Maintain Documents in Advance – Keep salary slips, Form-16, bank interest statements, and investment proofs ready by June.
  • Avoid Last-Minute Rush – File ITR at least 3-4 weeks before the deadline.
  • Use Professionals Wisely – Consult a chartered accountant early if your case involves business or multiple income sources.
  • Stay Updated – Follow official notifications instead of relying on rumors about deadline extensions.

Final Thought

The extension of the ITR deadline till 15th September was a generous move by the Income Tax Department. However, the fact that many taxpayers are still requesting more time shows how dependency on extensions has become a habit.

Key Message: Filing ITR is not just a legal obligation but also a financial responsibility. Instead of waiting for another extension, taxpayers must learn the value of timely compliance. Filing early not only avoids penalties but also ensures peace of mind and better financial planning.