ITR Update: If you are an income taxpayer, this news could be very important for you. The Income Tax Department has issued an alert, clearly indicating that some taxpayers’ income tax returns (ITRs) contain errors or mismatches. As a result, their refunds have been withheld. In such cases, taxpayers have been advised to make the necessary corrections to their returns and refile the correct ITR by December 31, 2025.
What is a Revised ITR?
If you filed your ITR on time but later discovered an error, you can file a revised ITR. This error could be related to your income, such as forgetting to include certain income, claiming incorrect deductions, calculation errors, or using the wrong ITR form. Under the income tax law, there is no penalty for filing a revised ITR within the stipulated time limit. This ensures that your refund is processed correctly.
What is a Belated ITR?
A belated ITR is for taxpayers who failed to file their ITR by the due date. Typically, the last date for filing ITRs for individual taxpayers is July 31st. If someone misses this deadline, they can file a belated ITR later. However, filing a belated ITR may incur late fees and interest. Additionally, some tax benefits, such as carrying forward business losses to the next year, may be forfeited.
Why is the December 31st deadline important?
The last date for filing a revised ITR for Assessment Year 2025-26 is December 31, 2025. If corrections are not made by this date, after January 1, 2026, only the option of filing an updated return will remain, which may involve paying additional taxes. This is why the tax department is giving people the opportunity to correct their mistakes in time, so that they don’t have to bear a heavy tax burden in the future.