Today is the ITR filing deadline AY 2025-26, the Central Board of Direct Taxes (CBDT) has extended the return filing deadline for everyone including, non audit cases (individuals, Hindu Undivided Families, etc.) for the FY 2024 25 from July 31 to September 15, 2025.
These extra days given to the taxpayers helps them to deal with current alterations in ITR forms. These include comprehensive capital gains lists, improved disclosure requirements, and reviewed eligibility for simpler forms ITR 1 and ITR 4 for some minor gains.
ITR Filing Deadline 2025: What Startup Investors Should Watch Out For
Investors in startups regularly deal with equity shares, diluted ownership, Employee Stock Ownership Plans, unlisted shares, and long-term & short-term capital gains. Properly reporting these components is necessary to avoid any type of penalties and get the most out of deductions.
Some of the applicable sections in ITR Filing 2025
• Section 54F: The proposals which are exempted on long term capital gains when proceeds are invested in residential property. In order to claim this, the timing when the property has been purchased or construction are related to the date of sale of asset.
• Section 80C / 80CCD etc.: Permit deductions for some investment structures and startup related suitable investments.
Startups or private equity investments require vigorous documentation: assessment of the records, proof of acquisition of stake, ESOP arrangements, and fair market valuations. These assist in counting capital gains accurately under reformed norms.
ITR Filing Deadline 2025: Risks of Missing the Deadline & Best Practices
However, if the taxpayers miss the September 15 deadline, a late ITR needs to be done possibly till December 31, 2025.
Still, there are drawbacks related to the late ITR filing, these includes, late filing fees, possible loss of certain deductions and reimbursements, delayed refunds, and more scrutiny.
And for the startup investors, this could also mean loss on exemption claims like under Section 54F, or deductions/investment related assistance if not documented or demanded properly.
Some of the best practices in ITR filing includes:
1. Gather all documentation initially, share purchase dates, valuation, ESOP grant letters.
2. Preserve proof of investments, particularly if using exemptions (like under Section 54F).
3. Check which ITR form is applicable in your case (ITR 2, ITR 3 vs simpler forms) depending on whether capital gains exceed the thresholds limits or not.
Also Read: ITR Filing Deadline 2025: Anything New For NRI Taxpayers This Year?
Ankur Mishra is a journalist who covers an extensive range of news, from business, stock markets, IPOs to geopolitics, world affairs, international crises, and general news. With over a decade of experience in the business domain, Ankur has been associated with some of the reputed media brands. Through a sharp eye on global marketplaces along with deep insights and analysis of business strategies, Ankur brings simplicity to the complex economic matrix to decode market trends and empower people.
He is committed to entrenched data, facts, research, solutions, and a dedication to value-based journalism. He has covered trade tariff wars, international alliances, corporate policies, government initiatives, regulatory developments, along with micro- and macroeconomic shifts impacting global fiscal dynamics.
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