Revised ITR Deadline: Income Tax Return: Major Issues After December 31? Know Rules for Refund and Correction

Revised ITR Deadline: Mark December 31, 2025, in red on your calendar. This date is crucial for Income Tax Return (ITR) filing. Chartered Accountants (CAs) are already raising flags, warning that Revised or Belated returns cannot be filed after this deadline. However, a significant catch-22 situation is emerging for taxpayers whose returns are yet to be processed by the Income Tax Department. In this report, we explain the complications that may arise if an error is found in your return after December 31 and the options available to you.

The December 31 Deadline and Processing Trap

According to income tax rules, the last date to file a Revised or Belated ITR for the Assessment Year 2025-26 is December 31, 2025. The core issue lies in the processing timeline. Many original ITRs filed by taxpayers are still pending processing by the Centralised Processing Centre (CPC).

Experts point out that if the CPC processes your ITR after December 31, 2025, and finds a discrepancy, they will send you an intimation notice. However, since the December 31 deadline would have already passed, you will no longer be able to file a Revised ITR to fix that apparent mistake. Effectively, the standard route for correction will be closed.

The Alternative Remedy: Rectification Under Section 154

If you receive an error intimation after December 31 and cannot file a Revised ITR, do not panic. The law provides an alternative remedy. According to Chartered Accountant Suresh Surana, taxpayers can file a rectification application under Section 154 of the IT Act.

It is important to note that rectification has a limited scope. It is permitted only for “mistakes apparent from the record,” such as:

• Arithmetical errors or calculation mistakes.
• Incorrect computation of tax or interest.
• Mismatch in TDS credits.
• Incorrect carry-forward of losses.

You cannot make fresh claims, introduce new deductions, or address debatable issues of law through this route. Generally, a rectification request must be filed within 4 years from the end of the financial year in which the intimation is passed.

Limitations of ITR-U (Updated Return)

Some taxpayers might consider filing an Updated Return (ITR-U) as a solution. However, there are strict limitations. ITR-U is primarily designed for taxpayers who need to disclose additional income and pay more tax.

• No Refund Claims: You cannot file an ITR-U to claim a tax refund.
• No Loss Returns: It cannot be used to file a return of loss.
• Additional Liability: Filing an ITR-U attracts additional tax liability and cannot be used to lower your tax burden compared to the original return.

What If CPC Fails to Process on Time?

There is a statutory time limit for the CPC to process returns. For returns filed in the FY 2025-26, the CPC has time until December 31, 2026 (9 months from the end of the financial year).

If the CPC does not process the return within this prescribed period, it loses the legal authority to issue an intimation under Section 143(1) thereafter. In such cases, the return attains finality as filed. Consequently, if a tax refund is due as per your return, you become entitled to the full refund along with interest under Section 244A. Taxpayers facing indefinite delays can raise a grievance through the e-Filing Portal or CPGRAMS.

With time running out, if you have any pending revisions or filings, ensure you complete them before the December 31 deadline to avoid future complications.