The December 31, 2024 deadline for filing revised or belated income tax returns for financial year 2023-24 (assessment year 2025-26) has officially closed. While taxpayers can no longer revise their returns through the traditional route, several alternative pathways remain available for claiming legitimate tax refunds.

Impact of December 31 Deadline

The closure of the revision window means taxpayers have lost access to two key filing options that were previously available:

• Belated returns for those who missed the original filing deadline
• Revised returns to correct errors or omissions in already submitted ITRs

This restriction applies even if the income tax department has not yet processed the original return. However, the deadline closure doesn't automatically eliminate refund eligibility for taxpayers who filed their returns on time.

Available Refund Routes

Rectification Under Section 154

The most commonly used alternative involves filing rectification requests for returns that have been processed and received intimation under Section 143(1). This option addresses specific types of errors:

Rectification requests can be submitted online through the income tax e-filing portal and remain accessible beyond the December 31 deadline, making this the primary route for claiming or increasing refunds in 2025.

Pending Processing Cases

Taxpayers whose ITR status shows "under processing" should avoid taking immediate action. The Centralised Processing Centre (CPC) operates within statutory timelines to process returns and issue intimations. When refunds are due and no discrepancies exist, they are issued automatically along with applicable interest.

If processing delays extend beyond permitted periods, taxpayers can raise grievances through the e-filing portal or CPGRAMS system.

Updated Return (ITR-U) Limitations

While Updated Returns remain available from January 1 onwards, they come with significant restrictions that limit their usefulness for refund claims:

Filing ITR-U typically involves paying additional tax and interest, making it unsuitable for refund-seeking taxpayers.

Restricted Options Post-Deadline

Several correction methods are no longer available after December 31:

• Revising deductions or exemptions to increase refunds
• Correcting errors that reduce tax liability through revised returns
• Filing belated returns for assessment year 2025-26

Such corrections are now limited to rectification procedures where applicable, or require departmental approval in exceptional circumstances.

Recommended Actions for Taxpayers

Taxpayers should take systematic steps to ensure refund processing:

• Monitor ITR status regularly on the income tax portal
• Review intimation notices thoroughly upon receipt
• File rectification requests promptly when mismatches are identified
• Verify bank account details to prevent refund processing delays

While the December 31 deadline has closed the traditional revision route, taxpayers with legitimate refund claims retain viable alternatives through rectification procedures and standard processing channels.

December 31 marks the final deadline for taxpayers to file revised or belated income tax returns for Assessment Year 2025-26, relating to Financial Year 2024-25. The Income Tax Department has emphasized that once this deadline passes, taxpayers will face significant restrictions and additional costs for any corrections.

Deadline and Post-Deadline Options

The provision under Section 139(5) of the Income Tax Act allows taxpayers to correct errors or omissions in previously filed returns, or file where the original return was missed. However, this facility ends today.

Common Reasons for Filing Revised Returns

Taxpayers typically utilize the revised return facility to address several key issues. These include correcting deduction or exemption claims that were initially filed incorrectly, reconciling income discrepancies with data available in the Annual Information Statement (AIS) and Form 26AS, and fixing errors related to investment declarations, charitable donations, or banking details.

Completing revisions by the deadline helps prevent discrepancies that could delay processing or trigger follow-up communication from the tax department.

Processing Delays and Department Response

During the current assessment cycle, several returns experienced processing delays due to verification issues, mismatches in bank information, or inconsistencies between filed data and departmental records. The Income Tax Department responded by issuing bulk emails and SMS alerts to affected taxpayers, prompting them to review and correct their filings where required.

NUDGE Initiative and Advisory Outreach

The Income Tax Department has advised taxpayers to reassess their filings before the deadline as part of its data-led "NUDGE" initiative for AY 2025-26. This program uses analytics to identify returns where certain claims may not satisfy statutory conditions, including specific deduction or exemption claims requiring strict eligibility criteria.

The department has clarified that this outreach is advisory in nature, meaning taxpayers whose claims are accurate and compliant do not need to take any corrective action.

Implications After Deadline

Once December 31 passes, revised filings will not be permitted under the current provisions. Any corrections will have to be made through an Updated Return (ITR-U), which comes with higher tax obligations and legal restrictions. Tax professionals emphasize that completing revisions within the permitted window ensures smoother processing and reduces the likelihood of further departmental intervention.

The Income Tax Department continues to encourage taxpayers to utilize the remaining time to review their returns and make necessary corrections before the deadline expires.