Overview
- Tax authorities have emailed taxpayers for AY 2025-26 to correct discrepancies and file a revised return by December 31 or risk detailed scrutiny and refund delays.
- From January 1, 2026, only an updated return is permitted, which entails additional tax liability and cannot be used to claim or increase a refund or reduce tax.
- Experts say revised returns under Section 139(5) attract no penalty, whereas belated filings can draw a late fee under Section 234F and may restrict carrying forward losses.
- Salaried filers are being flagged for deduction and tax‑regime mismatches and for non-disclosure of income such as capital gains, crypto transactions, or interest.
- An ITR not processed by December 31 remains valid and can be processed within the statutory window, with refunds payable along with interest for departmental delays.