December 31, 2025, is the final date for filing both belated and revised ITRs for the relevant assessment year.

Your income tax refund for AY 2025-26 (FY 2024-25) could face delays if you miss the December 31, 2025, deadline for filing a revised income tax return (ITR), especially if your original return contains errors, mismatches, or ineligible refund claims.

The income tax department has been sending intimations to taxpayers whose returns show discrepancies, asking them to rectify mistakes and submit a revised ITR by the year-end deadline. Failure to do so could result in the case being picked up for detailed scrutiny, potentially delaying refunds and increasing tax liability.

Why December 31, 2025, matters

December 31, 2025, is the final date for filing both belated and revised ITRs for the relevant assessment year. Once this deadline passes, taxpayers lose the option to revise their returns, even if errors are identified later by the Centralised Processing Centre (CPC).

An added complication is timing. If the CPC processes a return after December 31 and then flags an error, the taxpayer will not be able to revise the return to fix it. This could directly impact refund processing and lead to demands, adjustments, or further notices.

Who is most affected?

According to an ET report, salaried employees form a large chunk of those receiving such intimations. In many cases, taxpayers claimed deductions in their ITR, such as those under Sections 80C, 80D, or HRA, without declaring them to their employer at the time of TDS deduction. This results in mismatches between salary data, Form 26AS, and the return filed.

Experts quoted in the report also point out that tax-regime mismatches are common. For example, when tax is deducted under the new regime, but the taxpayer files the return under the old regime while claiming deductions.

Common reasons for refund delays and notices

Refunds may be delayed or flagged due to:

• Claiming deductions that are incorrect, unsupported, or in excess
• Mismatch between ITR data and AIS/TIS or Form 26AS
• Incorrect claims related to HRA or leave travel allowance
• Unsupported deductions for insurance premiums, medical expenses, or donations
• Non-disclosure of income other than salary, such as:
• Capital gains from mutual funds or equity shares
• Income from crypto assets
• Interest income from deposits or other sources
• Such discrepancies prompt the tax department to seek clarification before releasing refunds.

What taxpayers should do

If you receive an intimation pointing out errors or mismatches, taxpayers are advised not to ignore it. Filing a revised return within the allowed timeline, on or before December 31, 2025, is the safest course of action.

Correcting genuine mistakes early helps avoid disallowance of deductions, interest costs, penalties, and prolonged scrutiny, while also ensuring that refunds are processed without unnecessary delays.

If your ITR for AY 2025-26 has any inconsistencies and you’ve received a communication from the tax department, December 31, 2025, is the last window to fix it. Missing this deadline could mean not just a delayed refund, but also deeper tax scrutiny later.