Key compliance deadlines in December: Taxpayers, pensioners and PAN holders face critical cut-offs
December has become a make-or-break month for taxpayers, pensioners and PAN holders, with several critical compliance deadlines approaching. Missing these cut-offs can trigger penalties, blocked financial transactions or even suspension of pension benefits. From income tax filings to Aadhaar–PAN linking, individuals must act quickly to avoid costly disruptions.
- Dec 2, 2025,
- Updated Dec 2, 2025 8:44 PM IST
December has emerged as a crucial month for compliance, with taxpayers, bank customers and government pensioners required to complete several mandatory tasks to avoid penalties, blocked transactions or suspended benefits. From income tax filings to Aadhaar–PAN linking, multiple deadlines fall within the month, making timely action essential.
ITR filing for Audit cases
The Central Board of Direct Taxes (CBDT) has extended the income tax return filing due date for assessees requiring a tax audit. Businesses and professionals now have time until December 10 to file their returns for Assessment Year 2025–26. The extension provides relief to entities dealing with audit delays and documentation backlogs.
Belated and Revised ITRs
Taxpayers who missed filing their FY25 returns, or those needing to correct errors in already filed returns, must submit their belated or revised returns by December 31. Missing this deadline triggers:
A late fee of up to Rs 5,000 (Rs 1,000 if income is below Rs 5 lakh)
Accrued interest on unpaid tax until the date of filing
After December 31, taxpayers can only use the ITR-U (Updated Return) mechanism, which allows corrections for up to two years but carries an additional tax liability of 25% to 50% of the total tax and interest payable.
Aadhaar–PAN linking
Individuals who received Aadhaar on or before October 1, 2024, must link it with their PAN by December 31, 2025. An unlinked PAN becomes inoperative, disrupting essential activities such as income tax return filing, high-value financial transactions, investments, and routine banking operations. Keeping PAN active is critical for uninterrupted financial access.
Compliance requirements
Several key deadlines also lapsed in November:
SBI mCASH Discontinued: The State Bank of India permanently withdrew its mCASH facility on November 30. Users must now rely on UPI, IMPS, NEFT or RTGS for fund transfers.
Life Certificate Submission Closed: Government pensioners were required to submit their annual life certificate by November 30. Failure to do so may result in pension credits being paused until verification.
NPS to UPS switching
Central government employees wishing to migrate from the National Pension System (NPS) to the Unified Pension Scheme (UPS) had to opt in by November 30. Those who switched may revert to NPS later, but only once.
Why December matters
December represents the last low-cost compliance window before steeper penalties and procedural hurdles set in. Completing these tasks on time ensures smooth financial operations—from receiving pensions to filing tax returns—without disruption or additional charges.
December has emerged as a crucial month for compliance, with taxpayers, bank customers and government pensioners required to complete several mandatory tasks to avoid penalties, blocked transactions or suspended benefits. From income tax filings to Aadhaar–PAN linking, multiple deadlines fall within the month, making timely action essential.
ITR filing for Audit cases
The Central Board of Direct Taxes (CBDT) has extended the income tax return filing due date for assessees requiring a tax audit. Businesses and professionals now have time until December 10 to file their returns for Assessment Year 2025–26. The extension provides relief to entities dealing with audit delays and documentation backlogs.
Belated and Revised ITRs
Taxpayers who missed filing their FY25 returns, or those needing to correct errors in already filed returns, must submit their belated or revised returns by December 31. Missing this deadline triggers:
A late fee of up to Rs 5,000 (Rs 1,000 if income is below Rs 5 lakh)
Accrued interest on unpaid tax until the date of filing
After December 31, taxpayers can only use the ITR-U (Updated Return) mechanism, which allows corrections for up to two years but carries an additional tax liability of 25% to 50% of the total tax and interest payable.
Aadhaar–PAN linking
Individuals who received Aadhaar on or before October 1, 2024, must link it with their PAN by December 31, 2025. An unlinked PAN becomes inoperative, disrupting essential activities such as income tax return filing, high-value financial transactions, investments, and routine banking operations. Keeping PAN active is critical for uninterrupted financial access.
Compliance requirements
Several key deadlines also lapsed in November:
SBI mCASH Discontinued: The State Bank of India permanently withdrew its mCASH facility on November 30. Users must now rely on UPI, IMPS, NEFT or RTGS for fund transfers.
Life Certificate Submission Closed: Government pensioners were required to submit their annual life certificate by November 30. Failure to do so may result in pension credits being paused until verification.
NPS to UPS switching
Central government employees wishing to migrate from the National Pension System (NPS) to the Unified Pension Scheme (UPS) had to opt in by November 30. Those who switched may revert to NPS later, but only once.
Why December matters
December represents the last low-cost compliance window before steeper penalties and procedural hurdles set in. Completing these tasks on time ensures smooth financial operations—from receiving pensions to filing tax returns—without disruption or additional charges.