Income Tax Refund May Be Delayed If Revised ITR is Not Filed by December 31, 2025, in These Cases

Taxpayers who filed their Income Tax Return for the assessment year 2025-26 with errors or discrepancies may face delays in receiving their refund, unless the revised ITR is submitted by December 31, 2025. The Income Tax Department is issuing notices in several such cases, urging timely correction. 

Revised ITR Deadline and Its Role in Refund Processing 

The Centralised Processing Centre (CPC) of the Income Tax Department processes returns and may identify data mismatches or ineligible claims like deductions not supported by Form 26AS or AIS.  

If notified of such discrepancies, taxpayers can only revise the ITR up to December 31, 2025. Failing to revise by this date means these corrections cannot be made, possibly resulting in delayed refunds or tax notices. 

Who Is Likely to Receive Notices or Face Delays? 

Taxpayers who claimed deductions under sections like 80C or 80D, or allowances like HRA, but did not report them to their employer during TDS calculation may receive mismatch notices. Others may include those claiming excessive or unverified deductions, or not reporting income such as mutual fund gains, equities, interest earned, or crypto transactions. 

Mismatches may also occur due to incorrect tax regime selection, with TDS done under the new regime but deductions claimed under the old one. These discrepancies flag the need for revision to avoid potential liabilities. 

Read More: Nudge Campaign Sees Over 15 Lakh Revised ITRs Filed in Assessment Year 2025-26! 

Steps Taxpayers Should Take Upon Receiving the Notice 

Once a notice is received, verify the information by comparing ITR with Form 26AS, AIS, and TIS. In case of discrepancy, file a revised return under section 139(5) before December 31, 2025, deadline. Ignoring such intimations may lead to claimed deductions being disallowed, inviting additional tax along with interest and penalties. 

Conclusion 

Taxpayers who have discrepancies in their filed ITR must submit a corrected version by December 31, 2025, to avoid refund delays and potential legal proceedings. The window for revision provides a limited opportunity for correction before stricter measures are initiated. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities or companies mentioned are only examples and not recommendations. This does not constitute a personal recommendation or investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.