New Delhi: If you’re still waiting for your income tax refund, those recent SMS or email alerts from the Income Tax Department might explain why. Hundreds of taxpayers have been informed that their refunds are currently on hold due to a mismatch in their ITR details. To fix the issue and ensure the refund is released, the department has advised affected individuals to file a revised income tax return by December 31, 2025, the last date to do so.
Revised vs Belated ITR: What Taxpayers Need to Know
The Income Tax Department’s recent action against taxpayers it believes have claimed excess refunds has left many people puzzled. Amid this confusion, it’s important to understand the options available if you need to file your return after the original ITR deadline. Taxpayers can either file a revised income tax return or a belated income tax return, but these two serve different purposes and come with different rules. Here’s a simple breakdown of how they differ.
Revised ITR: When and Why You Should File It
While filing their original ITR, taxpayers may sometimes make mistakes or miss out on important details. The good news is that such errors can be corrected by filing a revised income tax return under Section 139(5) of the Income Tax Act, 1961. A revised ITR allows taxpayers to fix issues such as unreported income, incorrect deductions, or calculation errors. It can also be used to update the refund amount—whether it needs to be increased or reduced based on the actual taxes paid.
Belated ITR: Option for Those Who Missed the Deadline
A belated income tax return is meant for taxpayers who fail to file their ITR within the original due date specified under Section 139(1) of the Income Tax Act. If you miss the deadline, you can still file a belated ITR up to December 31 of the relevant assessment year, but it usually comes with a penalty. Even so, filing a belated return is strongly advised, as it helps you stay compliant and avoid the bigger consequences of not filing your income tax return at all.
When should you file a revised ITR?
You should file a revised Income Tax Return (ITR) if you notice any error or omission in the return you have already submitted. This could include missing income details, reporting a lower or higher income than actual, claiming excess deductions, choosing the wrong ITR form, or even showing an incorrect refund amount. Filing a revised ITR allows you to correct these mistakes and ensure your tax details are accurate.
What should taxpayers do?
If you filed your original return on time and later spot a mistake, filing a revised ITR before December 31 is usually the easiest and most cost-effective option. However, if you missed the original due date, you may have to file a belated or updated return which often means paying additional tax.
Since refunds and penalties are involved, it’s best for taxpayers to recheck their returns carefully and take timely action. Doing so can help avoid fines, delayed refunds, and last-minute stress.
