The month of December is coming to an end, and with it, several important financial deadlines are looming. If you’ve been putting off important tasks like NPS, PAN-Aadhaar linking, or filing your Income Tax Return (ITR) until tomorrow, now’s the time to be cautious. December 31, 2025, could prove to be a doomsday for your bank balance and investments in many ways. From filing your tax return to securing your NPS portfolio, you have only a few days left. In this article, we’ll explain three major changes and deadlines that could be very costly if ignored.
NPS Alert
Pension regulator PFRDA has issued a major notice for investors in the National Pension System (NPS). The regulator has decided to completely discontinue ‘Scheme A’ and merge it with other schemes. ‘Scheme A’ primarily comprised alternative investments such as REITs, InvITs, and AIFs, but due to its smaller fund size, it is now being merged with ‘Scheme C’ (corporate debt) and ‘Scheme E’ (equity).
PFRDA says this merger will provide investors with better returns and reduce risk. If you do not make any changes to your portfolio by December 25, 2025, your money will be automatically transferred to another scheme. However, you still have the opportunity to choose the scheme of your choice without any additional charges.
ITR Final Warning
The last date for filing a ‘belated’ or ‘revised’ income tax return for the assessment year 2025-26 (financial year 2024-25) is December 31, 2025. If you haven’t filed this year’s return yet or made a major mistake in your previous return, this is your last chance to correct it.
Filing your return after December 31st will incur a late fee of up to ₹5,000 and heavy interest on any outstanding taxes. The biggest drawback is that you won’t be able to offset your business or stock market losses against next year’s profits. This will leave you with only the option of ‘ITR-U’, which doesn’t allow you to claim past losses and also incurs additional penalty tax.
PAN-Aadhaar Linking
A new deadline for linking PAN and Aadhaar expires on December 31st, 2025. However, this rule isn’t applicable to everyone, so please understand it carefully. This is specifically for PAN card holders who used their Aadhaar Enrollment ID instead of their Aadhaar number when applying for their PAN card.
This rule is completely different from the old deadline of June 2023. If you fall into this specific category and don’t complete the linking by December 31st, your PAN card will become invalid. After this, you will neither be able to file income tax returns nor open a new bank account. Additionally, TDS will be deducted at a much higher rate on your salary or investments.
Major Financial Losses from Missing Deadlines
If you don’t keep these deadlines in mind, the new year could start with a financial setback. First, not filing your ITR will not only result in a penalty but also damage your credit rating. Second, if your PAN card is invalid, your bank KYC will fail, and your demat or savings account may be frozen. Third, failing to make a timely decision regarding NPS could result in your funds being invested in an unintended way, potentially impacting your larger retirement goals.