Clock ticking for taxpayers as Dec 31 deadline nears for revised tax returns; what are next options
For the Assessment Year 2025–26, December 31 marks the final deadline to submit a revised income tax return, as long as the assessment has not been concluded. Any corrections sought after January 1 will have to be made through an updated return, which involves paying additional tax.
- Dec 31, 2025,
- Updated Dec 31, 2025 4:14 PM IST
Income Tax return 2025: With just hours left before the calendar turns, December 31 has emerged as a make-or-break deadline for income tax filers across the country. It marks the final opportunity for taxpayers to file belated or revised Income Tax Returns (ITRs) for the assessment year (AY) 2025–26 and correct mistakes without being pushed into a more expensive and restrictive compliance route.
For AY 2025–26, December 31 is the last date to file a revised return, provided the assessment has not already been completed. From January 1, taxpayers seeking to make changes will have no choice but to opt for an updated return, a process that comes with additional tax costs. The Income Tax Department has repeatedly urged taxpayers to use the remaining window to review their filings carefully.
The urgency is reflected in the numbers. The tax department recently said more than 15 lakh revised returns have already been filed for AY 2025–26. In addition, over 21 lakh taxpayers have filed updated returns during the current financial year, paying nearly Rs 2,500 crore in additional taxes. “Taxpayers are advised to verify the accuracy of their deductions and exemptions and revise their returns, if required, by December 31, 2025, to avoid further enquiries,” the department said in a statement.
Who should file Revised Returns
Errors in ITRs are more common than many realise. These can range from incorrect personal details and calculation mistakes to more serious lapses such as omitting income, choosing the wrong tax regime or claiming ineligible deductions. The revised return facility exists precisely to address such issues and allows taxpayers to correct errors without facing penalties, as long as changes are made within the prescribed deadline.
For instance, taxpayers who filed their original returns on September 16 for AY 2025–26 can revise them only until December 31. Missing this deadline does not shut the door completely, but it does change the route. From January 1, corrections can be made only through an updated return, which is designed primarily to encourage voluntary disclosure of additional income.
A revised return can be filed only if an original return already exists and can be used to correct any mistake, whether it results in higher tax, lower tax or even a refund.
Explaining the stakes, O.P. Yadav, Tax Evangelist at Prosperr.io, said that while the original filing deadlines under Section 139(1) have expired, taxpayers who missed them still have a final opportunity to file a belated return under Section 139(4) by December 31, subject to payment of tax, interest and a late filing fee of up to ₹5,000. He also cautioned that even individuals with nil tax liability may still be required to file returns due to high-value transactions, foreign assets, large bank deposits, significant expenditure, or higher TDS or TCS credits.
"Taxpayers should also note that belated returns do not allow the carry forward of business or capital losses, nor do they permit a change in tax regime. Non-filing can attract severe penalties, including up to 200% of tax payable for under-reported income and steep penalties under the Black Money Act for non-disclosure of foreign assets," Yadav said.
Updated returns
An updated return, however, can be filed even if the taxpayer missed both the original and belated filing deadlines. The catch is that updated returns are allowed only when there is additional tax payable. Refunds or loss carry-forwards cannot be claimed through this route.
There is also a cost difference. While filing a revised return does not attract penalties, Updated returns come with an additional tax of 25% to 50% of the tax due, depending on how late the filing is. Taxpayers can file an updated return up to 48 months from the end of the relevant assessment year, but the longer one waits, the higher the additional levy.
Verification step
One critical step taxpayers often overlook is verification. Experts stress that verifying a revised return is mandatory. If a revised ITR is not verified—either electronically or by submitting a signed ITR-V—it is treated as invalid and deemed never filed. In such cases, the Income Tax Department will not process the return or issue any refund.
As the clock ticks down, tax experts advise taxpayers to act quickly, double-check their filings and complete verification without delay. Missing the December 31 deadline could turn a simple correction into a costlier exercise in the months ahead.
Income Tax return 2025: With just hours left before the calendar turns, December 31 has emerged as a make-or-break deadline for income tax filers across the country. It marks the final opportunity for taxpayers to file belated or revised Income Tax Returns (ITRs) for the assessment year (AY) 2025–26 and correct mistakes without being pushed into a more expensive and restrictive compliance route.
For AY 2025–26, December 31 is the last date to file a revised return, provided the assessment has not already been completed. From January 1, taxpayers seeking to make changes will have no choice but to opt for an updated return, a process that comes with additional tax costs. The Income Tax Department has repeatedly urged taxpayers to use the remaining window to review their filings carefully.
The urgency is reflected in the numbers. The tax department recently said more than 15 lakh revised returns have already been filed for AY 2025–26. In addition, over 21 lakh taxpayers have filed updated returns during the current financial year, paying nearly Rs 2,500 crore in additional taxes. “Taxpayers are advised to verify the accuracy of their deductions and exemptions and revise their returns, if required, by December 31, 2025, to avoid further enquiries,” the department said in a statement.
Who should file Revised Returns
Errors in ITRs are more common than many realise. These can range from incorrect personal details and calculation mistakes to more serious lapses such as omitting income, choosing the wrong tax regime or claiming ineligible deductions. The revised return facility exists precisely to address such issues and allows taxpayers to correct errors without facing penalties, as long as changes are made within the prescribed deadline.
For instance, taxpayers who filed their original returns on September 16 for AY 2025–26 can revise them only until December 31. Missing this deadline does not shut the door completely, but it does change the route. From January 1, corrections can be made only through an updated return, which is designed primarily to encourage voluntary disclosure of additional income.
A revised return can be filed only if an original return already exists and can be used to correct any mistake, whether it results in higher tax, lower tax or even a refund.
Explaining the stakes, O.P. Yadav, Tax Evangelist at Prosperr.io, said that while the original filing deadlines under Section 139(1) have expired, taxpayers who missed them still have a final opportunity to file a belated return under Section 139(4) by December 31, subject to payment of tax, interest and a late filing fee of up to ₹5,000. He also cautioned that even individuals with nil tax liability may still be required to file returns due to high-value transactions, foreign assets, large bank deposits, significant expenditure, or higher TDS or TCS credits.
"Taxpayers should also note that belated returns do not allow the carry forward of business or capital losses, nor do they permit a change in tax regime. Non-filing can attract severe penalties, including up to 200% of tax payable for under-reported income and steep penalties under the Black Money Act for non-disclosure of foreign assets," Yadav said.
Updated returns
An updated return, however, can be filed even if the taxpayer missed both the original and belated filing deadlines. The catch is that updated returns are allowed only when there is additional tax payable. Refunds or loss carry-forwards cannot be claimed through this route.
There is also a cost difference. While filing a revised return does not attract penalties, Updated returns come with an additional tax of 25% to 50% of the tax due, depending on how late the filing is. Taxpayers can file an updated return up to 48 months from the end of the relevant assessment year, but the longer one waits, the higher the additional levy.
Verification step
One critical step taxpayers often overlook is verification. Experts stress that verifying a revised return is mandatory. If a revised ITR is not verified—either electronically or by submitting a signed ITR-V—it is treated as invalid and deemed never filed. In such cases, the Income Tax Department will not process the return or issue any refund.
As the clock ticks down, tax experts advise taxpayers to act quickly, double-check their filings and complete verification without delay. Missing the December 31 deadline could turn a simple correction into a costlier exercise in the months ahead.