Income Tax Refunds: 31st December 2025 Is the Cut-off Date

Income Tax Refunds: 31st December 2025 Is the Cut-off Date

Every year, many taxpayers either miss or postpone filing their Income Tax Return (ITR). However, the Income-tax Act allows you to claim a refund only if your ITR is filed within the prescribed time limit.

For Assessment Year (AY) 2025–26, the absolute last date to file a belated or revised ITR and secure any pending refund is:

➡️ 31 December 2025

Missing this deadline means your refund lapses — you permanently lose the right to claim the amount due to you.

📌 Why 31 December 2025 Is the Final Deadline

As per Sections 139(4) and 139(5) of the Income-tax Act:

A belated return (late ITR), and
A revised return (corrected ITR)

…can be filed only up to 31 December of the relevant assessment year.

For AY 2025–26:

The assessment year begins on 1 April 2025, and
The last permissible date to file a belated or revised ITR is 31 December 2025.

After this date, the income tax portal will not accept your return unless:

The government announces an extension (which is uncommon), or
You apply for Condonation of Delay under Section 119(2)(b) — a time-consuming process with no assurance of approval.

What happens if you miss the 31 December 2025 ITR deadline?

1️⃣ You forfeit any income-tax refund
All types of refundable tax will become unclaimable if you don’t file on time: TDS on salary, TDS on fixed-deposit interest, TDS on professional fees, or any excess tax paid as advance/self-assessment tax.

2️⃣ No chance to correct past mistakes
You can only submit a revised return up to 31 Dec 2025. After that the law won’t let you fix errors in earlier returns.

3️⃣ You lose the ability to carry forward losses
Certain losses are allowed to be carried forward only if the ITR is filed within the due period. These include: business losses, speculative losses, capital-gains losses, and losses from racehorse ownership. Miss the deadline → you forfeit carry-forward claims.

4️⃣ Penalties, interest and compliance notices
Failing to file may invite:
- Late-filing fee under Section 234F,
- Interest under Sections 234A/234B/234C,
- Automated compliance flags for AIS/TIS mismatches, and
- System-generated notices where TDS doesn’t match the ITR.
Who should definitely file by 31 Dec 2025?
- ✅ Anyone expecting a refund (TDS deducted)
- ✅ Individuals with taxable income after deductions
- ✅ Salaried employees where employer TDS appears excessive
- ✅ Freelancers, professionals and business owners (or anyone with books of account)
- ✅ Senior citizens with TDS on bank FD interest
- ✅ Students/interns/part-timers who had TDS deducted
- ✅ Anyone who must revise a previously filed incorrect ITR
Even if your taxable income is below the threshold, file if TDS was deducted or you maintain books — it preserves refund rights and documentation.

Missed the deadline — any rescue options?

Only limited, uncertain remedies:
- Condonation of Delay (Section 119(2)(b)) — you can apply, but the CBDT may take 6–12 months to decide and may refuse the request. It’s not a reliable plan.
- Updated ITR (ITR-U) can be filed later for corrections, but it does not allow claiming refunds.
Don’t rely on these — they’re slow and uncertain.

Practical tax-expert advice (short and actionable)
- File your ITR before 31 Dec 2025 if a refund is due — even when income is below taxable limit.
- Reconcile AIS, TIS, Form 26AS and bank interest entries before you file.
- If you filed incorrectly earlier, revise the return before the 31 Dec deadline.
- Remind family members (especially salaried employees and senior citizens) — many refund losses happen because people simply don’t know the deadline.