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.

The Income Tax Department has established December 31, 2025, as the final deadline for filing revised income tax returns (ITR) for Assessment Year 2025-26. Taxpayers across the country have been receiving SMS and email alerts from the department regarding ITR filings placed on hold due to filing mismatches. These taxpayers must submit their revised returns before the approaching deadline to avoid potential complications.

Understanding Revised ITR Filing

Under Section 139(5) of the Income Tax Act, 1961, taxpayers who have already filed their income tax returns but subsequently discovered errors can submit a revised return. This provision allows individuals to make necessary corrections and align their ITR filing with actual financial disclosures.

A revised ITR enables taxpayers to rectify various types of mistakes made in their original submissions. The following table outlines common errors that can be corrected through revised filing:

Key Provisions and Limitations

Taxpayers must understand that filing a revised ITR completely replaces the original return. The revised submission becomes the final income tax return for the relevant assessment year. Current income tax laws impose no limit on the number of times a taxpayer can file a revised return, provided all submissions occur before the December 31, 2025 deadline.

Consequences of Missing the Deadline

Failing to file a revised ITR before the deadline can result in several adverse outcomes for taxpayers. While the Income Tax Department does not impose penalties specifically for filing revised returns, missing the deadline creates complications.

The following table summarizes potential consequences:

Importance of ITR Intimation Compliance

The ITR intimation serves as a crucial communication tool, informing taxpayers about mismatches identified in their returns. Ignoring these notifications can trigger a cascade of complications including tax demands, future notices, and disallowance of legitimate claims. This situation often leads to enhanced scrutiny from the department and may result in additional tax liability.

Taxpayers who file revised returns before the deadline help maintain clean tax records. The department's current approach focuses on encouraging voluntary compliance through these intimations rather than imposing immediate penalties. However, the December 31, 2025 deadline represents the final opportunity for taxpayers to address identified discrepancies without facing more severe consequences.