The Income Tax Department has set a crucial deadline for Indian taxpayers looking to correct mistakes or file late returns for the financial year 2024-25. According to Section 139(5) of the Income Tax Act, the window for submitting a revised or a belated Income Tax Return (ITR) will close irrevocably on 31 December 2025.
Understanding the December 31 Deadline for ITR Revision
This deadline is mandated by the government and applies to the relevant assessment year, which is 2025-26 for income earned in FY 2024-25. The cut-off is strict: taxpayers will not be able to file a revised or belated ITR after this date under the normal provisions. Sudhakar Sethuraman, Partner at Deloitte India, clarifies the rule, stating that a belated return can be revised just like an original one, but the revision opportunity expires on December 31 of the assessment year.
"For the year 2024-2025, the revision due date is 31 December 2025. After this date, neither filing a belated return nor revising it is allowed," Sethuraman explained. This makes it imperative for taxpayers to review their filed returns and rectify any errors well before the year-end deadline.
Post-Deadline Options: Updated Return and Condonation
While the standard revision path closes, tax experts point out alternative mechanisms for those who miss the December 31 cutoff. Mihir Tanna, Associate Director of Direct Tax at SK Patodia & Associate LLP Chartered Accountants, highlights two key options: filing an 'Updated Return' or applying for 'condonation of delay'.
"Technically, a person cannot revise its return after 31st December. However, a person can change and revise data through 'Updated Return' or by filing ITR if the application of condonation is accepted," Tanna told Mint.
The 'Updated Income Tax Return' allows eligible taxpayers to disclose income they had previously omitted or to correct mistakes in a filed return. However, this comes with a cost. Before filing an updated return, the taxpayer needs to pay an additional tax (plus interest) on the undisclosed income. Importantly, this route cannot be used to claim an extra refund or to reduce an existing tax liability.
The second option, condonation of delay, involves seeking official permission from the Income Tax Department to file a return after the deadline. This is typically considered for genuine hardships. "An application can be filed with prescribed authority for filing income tax returns for claiming refunds or carry forward of losses. Authorities are prescribed to accept or reject such claims based on monetary limits," Tanna added. Missing deadlines without a valid reason can still attract heavy penalties and interest.
When Should You File a Revised ITR?
Taxpayers are advised to consider filing a revised return if they discover any significant errors in their original submission. Common scenarios that necessitate a revision include:
- Omitting, under-reporting, or exaggerating income.
- Missing out on eligible deductions or claiming excessive deductions/exemptions.
- Making calculation errors or failing to make necessary disclosures.
- Choosing the incorrect ITR form initially.
- Receiving a smaller refund than entitled to due to an oversight.
Filing an accurate and timely return is the best way to avoid complications. Taxpayers are strongly advised to consult with qualified tax professionals or refer to the official Income Tax Department website for the most current guidance tailored to their specific situation.
