Missed December 31 ITR deadline, refund still due? A practical roadmap for taxpayers
The December 31 deadline to file revised or belated income tax returns has passed, but many taxpayers are still waiting for refunds. Tax experts say a missed date does not automatically cancel a genuine refund claim, though options narrow sharply after the cut-off.
- Jan 2, 2026,
- Updated Jan 2, 2026 1:48 PM IST
The December 31, 2025 deadline to file revised and belated income tax returns for FY 2024–25 (AY 2025–26) has passed, closing the window for taxpayers to correct errors or file late returns. While those who filed on or before September 16, 2025, had the option to revise their returns and others could still submit belated filings until year-end, the door is now shut on both routes — even if the Centralised Processing Centre (CPC) has yet to process the return.
As the filing window closes, a different concern has taken centre stage: refunds. Thousands of taxpayers who filed within the permitted timelines are still waiting for their money, and the end of the revised return window has sparked anxiety that a missed date could mean losing the refund altogether. Tax experts say that fear is misplaced, noting that a legitimate refund does not disappear merely because a statutory deadline has passed.
A refund does not automatically lapse just because the calendar year has ended. The key factors are whether a valid return was filed earlier and the reason the refund is pending. However, options narrow sharply once the December 31 cut-off is crossed.
What changes after December 31
O.P. Yadav, Tax Evangelist at Prosperr.io and former Principal Commissioner of Income Tax, said taxpayers who failed to act in time now face significant constraints. “With the December 31 deadline now over, taxpayers who failed to file their Income Tax Return for AY 2025–26 and had a refund due are left with very limited remedies. Filing a belated return under Section 139(4) or a revised return under Section 139(5) was permissible only up to December 31, 2025. Beyond this date, even an updated return under Section 139(8A) offers no relief, as the law expressly bars updated returns that result in a refund or enhance an existing refund claim,” Yadav said.
Condonation of delay
Yadav said the only option left in such cases is to seek condonation of delay under Section 119(2)(b) of the Income-tax Act.
“The only recourse available now is to seek condonation of delay for claiming the refund under Section 119(2)(b) of the Income-tax Act. As clarified in CBDT Circular No. 11 of 2024, such applications are to be examined by designated authorities based on the quantum of refund, while the Commissioner of Income-tax (CPC), Bengaluru, has been specifically empowered to accept or reject petitions relating to delayed verification of returns,” he said.
These applications are considered only where taxpayers can establish “reasonable cause” and “genuine hardship” and are subject to detailed scrutiny. No interest under Section 244A is payable on refunds granted through this route, and no claim can be made beyond five years from the end of the relevant assessment year.
Rectification under Section 154
For taxpayers who filed returns on time but received a lower-than-expected refund or none at all due to errors, rectification under Section 154 remains available.
This option applies after the return has been processed and an intimation under Section 143(1) has been issued. It can be used to correct mismatches in TDS or TCS, errors in tax or interest computation, or clerical mistakes, and can be filed online even after December 31.
Revised return vs rectification
Tax professionals stress the difference between the two. A revised return allows a comprehensive correction of substantive errors in the original filing. Rectification, on the other hand, is limited to fixing obvious mistakes made during processing.
Return under processing
If the return status shows “under processing,” no immediate action is required. The Centralised Processing Centre (CPC) has up to nine months from the end of the financial year in which the return was filed to complete processing. For example, returns filed on July 31 or December 31, 2025, can be processed up to December 31, 2026.
If processing goes beyond the prescribed time, taxpayers can raise a grievance on the income tax e-filing portal or escalate the matter through the CPGRAMS platform.
Why updated returns won’t help
Updated returns filed using ITR-U extend the filing window by up to 48 months but are designed for taxpayers who need to pay additional tax. They cannot be used to create or increase refunds and come with steep additional tax outgo.
The December 31, 2025 deadline to file revised and belated income tax returns for FY 2024–25 (AY 2025–26) has passed, closing the window for taxpayers to correct errors or file late returns. While those who filed on or before September 16, 2025, had the option to revise their returns and others could still submit belated filings until year-end, the door is now shut on both routes — even if the Centralised Processing Centre (CPC) has yet to process the return.
As the filing window closes, a different concern has taken centre stage: refunds. Thousands of taxpayers who filed within the permitted timelines are still waiting for their money, and the end of the revised return window has sparked anxiety that a missed date could mean losing the refund altogether. Tax experts say that fear is misplaced, noting that a legitimate refund does not disappear merely because a statutory deadline has passed.
A refund does not automatically lapse just because the calendar year has ended. The key factors are whether a valid return was filed earlier and the reason the refund is pending. However, options narrow sharply once the December 31 cut-off is crossed.
What changes after December 31
O.P. Yadav, Tax Evangelist at Prosperr.io and former Principal Commissioner of Income Tax, said taxpayers who failed to act in time now face significant constraints. “With the December 31 deadline now over, taxpayers who failed to file their Income Tax Return for AY 2025–26 and had a refund due are left with very limited remedies. Filing a belated return under Section 139(4) or a revised return under Section 139(5) was permissible only up to December 31, 2025. Beyond this date, even an updated return under Section 139(8A) offers no relief, as the law expressly bars updated returns that result in a refund or enhance an existing refund claim,” Yadav said.
Condonation of delay
Yadav said the only option left in such cases is to seek condonation of delay under Section 119(2)(b) of the Income-tax Act.
“The only recourse available now is to seek condonation of delay for claiming the refund under Section 119(2)(b) of the Income-tax Act. As clarified in CBDT Circular No. 11 of 2024, such applications are to be examined by designated authorities based on the quantum of refund, while the Commissioner of Income-tax (CPC), Bengaluru, has been specifically empowered to accept or reject petitions relating to delayed verification of returns,” he said.
These applications are considered only where taxpayers can establish “reasonable cause” and “genuine hardship” and are subject to detailed scrutiny. No interest under Section 244A is payable on refunds granted through this route, and no claim can be made beyond five years from the end of the relevant assessment year.
Rectification under Section 154
For taxpayers who filed returns on time but received a lower-than-expected refund or none at all due to errors, rectification under Section 154 remains available.
This option applies after the return has been processed and an intimation under Section 143(1) has been issued. It can be used to correct mismatches in TDS or TCS, errors in tax or interest computation, or clerical mistakes, and can be filed online even after December 31.
Revised return vs rectification
Tax professionals stress the difference between the two. A revised return allows a comprehensive correction of substantive errors in the original filing. Rectification, on the other hand, is limited to fixing obvious mistakes made during processing.
Return under processing
If the return status shows “under processing,” no immediate action is required. The Centralised Processing Centre (CPC) has up to nine months from the end of the financial year in which the return was filed to complete processing. For example, returns filed on July 31 or December 31, 2025, can be processed up to December 31, 2026.
If processing goes beyond the prescribed time, taxpayers can raise a grievance on the income tax e-filing portal or escalate the matter through the CPGRAMS platform.
Why updated returns won’t help
Updated returns filed using ITR-U extend the filing window by up to 48 months but are designed for taxpayers who need to pay additional tax. They cannot be used to create or increase refunds and come with steep additional tax outgo.