Every year, lakhs of taxpayers forget or delay filing their Income Tax Return (ITR). But under the Income-tax Act, the right to claim a refund exists only if you file your ITR within the permissible time limit.
For Assessment Year (AY) 2025-26, the final deadline to file a belated or revised ITR and claim any pending income tax refund is:
➡️ 31st December 2025
If you miss this date, your refund is forfeited — meaning you permanently lose the right to claim your own money.
📌 Why 31st December 2025 Is the Final Cut-Off
Under Section 139(4) and 139(5) of the Income-tax Act:
- Belated ITR (late return) and
- Revised ITR (corrections in filed return)
…can be filed only up to 31st December of the assessment year.
For AY 2025-26:
- Assessment Year starts on 1 April 2025
- Last date to file belated/revised ITR = 31 December 2025
After this date, the portal does not permit filing unless:
- The government specifically grants an extension (rare), or
- You go through the long & uncertain process of Condonation of Delay (Section 119(2)(b)) — which is NOT guaranteed.
💰 What Happens if You Do Not File ITR by 31 December 2025?
1️⃣ You lose your Income Tax Refund
- TDS deducted on salary
- TDS deducted on FD interest
- TDS on professional income
- Excess tax paid via Advance Tax or Self-Assessment Tax
All refunds become non-claimable.
2️⃣ No option to correct old mistakes
If you filed a wrong return earlier:
- You can revise only until 31st December
- After that, even if you made a mistake, you cannot revise
3️⃣ Lose the benefit of Carry-forward of Losses
Losses that must be carried forward ONLY if ITR is filed on time:
- Business loss
- Speculative loss
- Capital gains loss
- Loss from owning and maintaining racehorses
Missing the return date = no loss can be carried forward.
4️⃣ Penalties and notices may follow
Non-filing can trigger:
- Section 234F late filing fees
- Interest under Section 234A/B/C
- Non-filers may be flagged for compliance under AIS/TIS mismatch
- System-generated notices for TDS–ITR mismatch
🧾 Who MUST File ITR Before 31 December 2025?
✔️ Anyone expecting a REFUND
If any TDS has been deducted and refund is due, ITR filing is mandatory.
✔️ Individuals with income above exemption limit (after Chapter VI-A deductions)
✔️ Salaried individuals whose employer deducted excess TDS
✔️ Freelancers, Professionals & Business owners
Even if income is below taxable limit but:
- TDS deducted by clients
- Books maintained under business/profession
…then filing is important for refund + documentation.
✔️ Senior citizens with bank FD interest TDS
✔️ Students earning via internships, stipends, freelancing where TDS deducted
✔️ Persons who filed earlier ITR incorrectly and need to revise it
⚠️ If You Miss the Deadline — Is There Any Way Out?
Yes, but difficult.
You can apply for Condonation Request u/s 119(2)(b) ONLY IF:
- Refund amount is genuine
- You have valid reasons for delay
CBDT may take 6–12 months to decide and may reject your request.
So do NOT depend on condonation.
Also Updated ITR (ITR-U) can be filled but cannot claim refund
🎯 Final Advice by Tax Experts
- File your ITR before 31 December 2025, even if your income is below the taxable limit but refund is due.
- Cross-check AIS, TIS, Form 26AS, and Bank interest data before filing.
- If an incorrect ITR was filed earlier — revise it before 31 December.
- Educate family members (especially salaried employees & senior citizens) because most refund losses occur due to ignorance.
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