Income Tax Refund: Issue Date, Partial Adjustment & Top Reasons for Refund Failure Explained

Income Tax Refund: As 2025 comes to a close, many individuals are still waiting for their refunds. The Income Tax Department is sending out alerts to those who submitted ITRs with false or fraudulent receipts, offering them a chance to amend their returns. This has led many to question if ITRs can be revised post-December 31st. Let’s take a look at the rules set by the Income Tax Department and what the experts have to say.

Can ITR be amended even after December 31?

Many taxpayers end up filing fake ITRs due to peer influence, while others simply make errors during the filing process. In both scenarios, the taxpayer’s refund gets delayed. So, can corrections to ITRs still be made?

According to Section 139(5) of the Income Tax Act, there is a provision for filing a revised or delayed income tax return (ITR). Taxpayers can rectify any mistakes in their returns, but only until December 31st. After this date, no changes to the return are allowed. Hence, it’s crucial for all taxpayers to submit their ITRs on time.

What do experts say on ITR correction?

On the topic of ITR correction, Sudhakar Sethuraman, a Partner at Deloitte India, stated that revised or belated returns cannot be filed after December 31.

Meanwhile, Mihir Tanna from SK Patodia & Associates LLP clarified that technically, revisions are off the table after December 31st. However, taxpayers may file updated returns if their amnesty application is approved. Before submitting the updated return, taxpayers will need to pay extra tax and interest on any undisclosed income.

When is the refund processed?

The tax department starts processing refunds only after the taxpayer has e-verified their return. Typically, it takes about 4-5 weeks for the refund to be credited to the taxpayer’s account, as per an official statement from the Income Tax Department.

If you haven’t received your refund within this time frame, it’s important for the taxpayer to look out for any notifications about discrepancies in their ITR.

They should also keep an eye on their email for any updates from the IT department about the refund. Additionally, the taxpayer needs to check the refund status on the e-filing portal.

What documents are required?

Here’s what you need to have in order to use this service:

— A valid User ID and Password.

— Your PAN should be linked to your Aadhaar number.

— ITR must be filed with a refund claim.