These days income tax department is alerting many tax payers by sending SMS and email. The message is stating that some errors or mismatches have been found in his Income Tax Return (ITR), due to which his refund has been withheld for now. Such taxpayers have been asked to make necessary corrections and file the correct returns again by December 31, 2025.
Many people find it difficult to understand whether they should file a revised ITR or a billed ITR. Both are different and choosing the wrong option can also lead to penalties.
What is Revised ITR?
When a taxpayer files his ITR on time, but later realizes that there is an error, then a revised ITR is filed. This error can be income related, such as forgetting to add any income, claiming wrong deductions, making wrong calculations or selecting wrong ITR form.
The Income Tax Act gives taxpayers an opportunity to rectify their mistakes. The good thing is that there is no penalty for filing revised ITR within the stipulated time limit. Along with this, the refund amount is also processed properly.
What is deferred ITR?
Delayed ITR is for those who could not file their ITR by the due date. Generally, the last date for filing ITR for individual taxpayers is 31 July. If a person misses this date, he can file ITR late.
However, you may have to pay late fees and interest for late ITR filing. In addition, some tax benefits are also eliminated, such as the ability to carry forward business losses in future years.
Why is December 31st important?
Last date for filing amended ITR for assessment year 202526 is 31 December 2025. If the amendment is not made by this date, after January 1, 2026, only the option of an updated return remains, which may incur additional tax. This is the reason why the tax department is giving people a chance to correct their mistakes in time, so that they don’t have to bear heavy tax burden later.