ITR Deadline Sept 15: Taxpayers Face Glitches,

CBDT Extends Tax Exemption Window for SWFs & Pension Funds

The Central Board of Direct Taxes (CBDT) has officially extended the timeline for income tax exemptions under Section 10(23FE) of the Income Tax Act for Sovereign Wealth Funds (SWFs) and Pension Funds. The new deadline for qualifying investments is now March 31, 2030, up from the earlier March 31, 2025.

• This extension was formalized via Notification No. 113/2025, issued on July 11, 2025, and is effective retrospectively from April 1, 2025.
• The move aims to attract long-term foreign capital into India’s infrastructure, logistics, and power sectors.
• It provides fiscal certainty to global investors and aligns with India’s goal of becoming a $5 trillion economy.
• Retail investors may benefit indirectly through InvITs, REITs, and mutual funds that channel investments into these sectors.

This exemption, provided under Section 10(23FE) of the Income Tax Act, covers income in the form of  Dividends, Interest, Long-term capital gains. Extending the tax exemption window till 2030 cements India’s position as a long-term hub for global infrastructure investments. While sovereign wealth and pension funds directly benefit, retail investors also gain access through mutual funds, InvITs, and REITs. The move is expected to Attract greater foreign capital, Improve transparency, Strengthen India’s infrastructure financing ecosystem

Background of the Scheme

The scheme was first introduced in April 2020 to attract patient global capital into India’s long-term infrastructure projects. Since then, several global funds from Saudi Arabia, Singapore, Kuwait, and Norway have actively participated in the Indian market.

Focus Areas for Investment

The extended policy is expected to channel more foreign capital into priority sectors such as Commercial real estate, Logistics parks, Data centers, Urban infrastructure. These inflows lower financing costs for long-gestation projects and ensure steady, predictable capital for India’s infrastructure growth.

Impact on Retail Investors

While large foreign funds are the direct beneficiaries, retail investors stand to gain indirectly through Mutual funds, InvITs (Infrastructure Investment Trusts), REITs (Real Estate Investment Trusts). With higher foreign participation, these instruments become more attractive, giving retail investors access to global-grade infrastructure assets.

Rising Foreign Investments

The policy has already delivered results Direct investments by SWFs and pension funds nearly doubled to $6.7 billion in 2022 from $3.8 billion in 2021. & Assets under custody in Indian companies surged 60% YoY, reaching ₹4.7 lakh crore by April 2024.

September 15 – ITR Filing Deadline Amid Portal Glitches

ITR Deadline Sept 15: Taxpayers Face Glitches, I-T Dept Issues Filing Advisory

With just days left before the September 15, 2025 deadline for filing Income Tax Returns (ITRs) for FY 2024-25, taxpayers are facing mounting challenges due to portal glitches, delayed utility releases, and a compressed filing window. With the September 15, 2025 deadline for filing ITRs fast approaching, taxpayers are facing significant technical issues across multiple platforms:

Portal Slowdowns & Technical Issues

Taxpayers have reported difficulties accessing key e-filing platforms Annual Information Statement (AIS), Form 26AS, Taxpayer Information Summary (TIS). These platforms have been intermittently down because of heavy traffic. The TRACES portal, vital for Form 26AS, TDS certificates, and tax credit verification, has been unavailable since September 11, adding to the stress of last-minute compliance.

Filing Numbers Lagging

By September 11, only 5.47 crore ITRs had been filed, far behind last year’s 7.28 crore returns filed by July 31, 2024. Experts point to the delayed release of utilities as the primary reason for this shortfall.

Utility Release Timeline (2025)

Unlike 2024, when most forms were available by April, this year’s utilities were released much later, compressing the filing timeline:

• 29 May – ITR-1 & ITR-4 Excel utilities

• 4 June – ITR-1 & ITR-4 online utilities

• 11 July – ITR-2 & ITR-3 Excel utilities

• 17 July – ITR-2 online utility

• 30 July – ITR-3 offline & online utilities

• 8 August – ITR-5 Excel utility

• 14 August – ITR-6 Excel utility

This delay left taxpayers and professionals with limited preparation time.

I-T Department’s Tech Advisory

To minimize disruptions, the department has advised using the following:

• Browsers: Microsoft Edge (v88+), Chrome (v88+), Firefox/Mozilla (v86+), Opera (v66+)

• Operating Systems: Windows 7.x or above, Linux, or Mac OS

• Other Requirements: Enable CSS & JavaScript, allow cookies, and use a valid Class 2/3 Digital Signature Certificate (DSC) where applicable.

Weekend & Bank Holiday Concerns

The upcoming Sept 13–14 weekend coincides with the second Saturday bank closure, raising questions about the availability of banking services for last-minute tax payments and challan deposits. Clarification from officials is still awaited.

Penalties for Missing Deadline

Missing the deadline can be costly:

• Late fee: Up to ₹5,000 (capped at ₹1,000 if total income < ₹5 lakh).

• Interest: 1% per month (or part thereof) on unpaid tax.

Tax professionals urge taxpayers to Check system/browser compatibility in advance., Gather all necessary documents., File ITRs at the earliest possible, avoiding the final-day rush.

What are Mandatory ITR Filing Scenarios for Indian Taxpayers ?

Situations Where Filing of Income Tax Return (ITR) is Mandatory :  Even if your income is below the basic exemption limit, in certain cases filing of ITR is compulsory.

• Income exceeds basic exemption limit: INR 2.5 lakh for individuals, INR 3 lakh for senior citizens, INR 5 lakh for super senior citizens.
• Business or professional income: If you’re self-employed or running a business.
• Foreign assets or income: Holding assets or earning income outside India.
• Capital gains: From sale of property, stocks, mutual funds, etc.
• Agricultural income ≥ INR 5,000: If combined with other income exceeding exemption limits.
• To claim a refund: If TDS is deducted or excess advance tax is paid.
• Advance tax obligations: If liable to pay advance tax during the year.
• Income from multiple sources: Salary, interest, rental income, etc., exceeding exemption limits.
• Resident with foreign assets/income: Even if income is below exemption limit.
• Other official requirements: For loans, visa applications, or government mandates.

Even if your taxable income is below the threshold, you must file ITR in the above cases.

In Summary,

• AIS, Form 26AS, TIS, and TRACES portals have experienced intermittent outages due to high traffic.
• As of September 11, only 5.47 crore ITRs had been filed, compared to 7.28 crore by July 31, 2024.
• Several professional bodies, including BCAS, FKCCI, and Tax Bar Associations, have requested an extension of the deadline.
• Key concerns include:
  • Delayed release of ITR forms and utilities (e.g., ITR-2 and ITR-3 released in July, ITR-5 and ITR-6 in August).
  • Mismatch in AIS and Form 26AS data, complicating reconciliations.
  • Portal performance issues, including login failures and slow response times.
  • Overlap with festive season, reducing staff availability and client coordination.

Despite mounting pressure, CBDT has not yet announced any extension. Tax experts advise filing as early as possible to avoid penalties and last-minute issues.