ITR Deadline: The deadline for revised and belated returns has ended! Now only this option remains.

By Siddhi Jain | Jan 2, 2026, 09:05 IST

ITR Deadline Alert: Revised and Belated Return Window Closes—Only One Costly Option Left After January 1

ITR Deadline Update: December 31 marks a critical cutoff for income tax filers in India. With the end of the year, the window to file Revised Returns and Belated Returns officially closes. From January 1 onward, taxpayers who missed earlier deadlines or need to correct mistakes will be left with only one remaining option—Updated Return (ITR-U), which comes with higher tax costs and fewer benefits.

Tax experts are warning that delaying income tax compliance beyond this deadline can prove expensive. If you are yet to file or revise your Income Tax Return (ITR), understanding the difference between revised, belated, and updated returns is crucial before the clock runs out.

December 31: Last Date for Revised and Belated ITR

The Income Tax Department has clearly stated that December 31 is the final deadline to file:

Belated Return under Section 139(4), and
Revised Return under Section 139(5)

Once this date passes, taxpayers will no longer be allowed to use these relatively flexible and beneficial options. Any correction, omission, or unreported income after this point will have to be addressed only through an Updated Return under Section 139(8A).

Why Missing the Deadline Can Be Costly

While the law allows filing an Updated Return up to 48 months after the end of the assessment year, experts stress that it should not be treated as a substitute for timely filing.

Key drawbacks of Updated Return include:

Higher additional tax liability
Loss or reduction of refunds
No carry-forward of losses
Limited tax benefits

In short, a small delay today can translate into a significant financial burden later.

What Is a Revised Return and Why It Matters

A Revised Return is meant for taxpayers who:

Filed their ITR on time
Later discovered errors, omissions, or mismatches

In recent months, many taxpayers received notices due to discrepancies between ITR data, Form 16, and the Annual Information Statement (AIS). Incorrect reporting has even led to refund delays in several cases.

Under Section 139(5), a Revised Return offers several advantages:

The original return is completely replaced
Multiple revisions are allowed until December 31 or assessment completion
No penalty if the error was unintentional
No interest if there is no outstanding tax
Refund claims can be corrected
Business or capital losses can be carried forward

This makes the revised return the most taxpayer-friendly correction option, but only until December 31.

Belated Return: Last Chance for Late Filers

Taxpayers who failed to file their ITR within the original due date can still file a Belated Return under Section 139(4), but only up to December 31.

However, belated returns come with limitations:

Late filing fees apply
Interest is charged on unpaid tax
Choice of tax regime may be restricted
Business and capital losses cannot be carried forward
Refunds may be delayed

Despite these downsides, belated returns are still far less expensive than filing an Updated Return later.

Updated Return (ITR-U): The Only Option After January 1

Once the December 31 deadline passes, taxpayers will be left with only the Updated Return (ITR-U) option.

Key points about ITR-U:

Can be filed up to 48 months after the assessment year
Only one updated return per year is allowed
Cannot be used to reduce tax liability
No refund can be claimed
Losses cannot be declared or carried forward

Additional Tax Burden

The most significant drawback is the extra tax payable, which increases with time:

25% additional tax if filed in the first year
50% in the second year
60% in the third year
70% in the fourth year

This makes ITR-U the most expensive compliance route.

Experts Issue Clear Warning

Chartered Accountant Mehul Seth explains that taxpayers who fail to revise their return by December 31 will have no choice but to opt for Updated Return from January 1, significantly increasing their tax outgo.

Another tax expert, CA Anish Thakur, points out that an ITR is no longer just a tax calculation form. It is now a comprehensive financial disclosure document, and frequent revisions or updates should be treated as an exception—not a habit.

Important Advisory for Taxpayers

The Income Tax Department has explicitly clarified that Updated Return should not be considered an alternative to timely filing. December 31 remains the most critical date for taxpayers who want to minimize tax, interest, and penalties.

Experts unanimously advise:

File or revise returns before December 31
Recheck income details with AIS and Form 16
Act early to avoid higher costs and reduced options

Conclusion

The end of December is not just the close of the calendar year—it is a decisive deadline for income tax compliance. Once Revised and Belated Return options expire, taxpayers are left with a costlier and less flexible Updated Return route.

Acting before December 31 can save you money, protect refunds, and preserve tax benefits. Delaying beyond this date only narrows choices and increases the financial burden. Staying timely and compliant remains the smartest tax strategy.