Taxpayers are receiving SMS and email alerts from the Income Tax Department stating that their income tax refunds have been put on hold due to mismatches in their filings.
For many, the message arrived unexpectedly. Returns were filed months ago, acknowledgements were generated, yet refunds have stalled — pushing taxpayers into a familiar year-end scramble
The alerts come with a clear timeline. Taxpayers have been asked to act before December 31, which is the final date to file a revised income tax return for the assessment year 2025-26.
After this date, corrections are still possible, but only through an updated return, which comes with additional tax liability. In effect, December 31 marks the last penalty-free window.
This has brought a common question into focus: should taxpayers file a revised ITR or a belated ITR?
Both are filed after the original due date, but they serve very different purposes — and choosing the wrong one could cost money.
A revised ITR is meant for taxpayers who already filed their return on time but later discovered mistakes.
These errors could include missed income, incorrect deductions, wrong ITR form selection, calculation mistakes, or claiming a higher or lower refund than eligible.
Under Section 139(5) of the Income Tax Act, 1961, taxpayers can revise their return and correct these issues without paying any penalty, as long as it is done before December 31 or before assessment is completed.
According to Shefali Mundra, tax expert at ClearTax, quoted in a Mint report, filing a revised return within the permitted timeframe does not attract a penalty, though any additional tax or interest must still be paid
A belated ITR, on the other hand, applies to taxpayers who missed the original filing deadline, which is usually July 31 for individuals.
Even though it can be filed up to December 31, it is treated as an original return and comes with consequences. A late filing fee of up to ₹5,000 may apply under Section 234F, along with interest on unpaid taxes. Some benefits, such as carrying forward certain losses, may also be lost.
In short, a belated return fixes non-filing, not filing mistakes.
The difference matters most for those whose refunds are currently on hold.
If the return was filed on time but contains errors, a revised ITR is usually the safer and cheaper route. If the return was never filed at all, a belated ITR may be the only option — even though it comes at a cost.
Tax experts say many refund delays stem from mismatches between filed data and information available with the department, such as income details, TDS, or deductions reflected in official records.
Correcting these through a revised return before December 31 could help unblock refunds without additional penalties.
With automated alerts increasing and refunds already on pause for many, December 31, 2025, has become more than just another tax date.
For taxpayers, the choice between revised and belated ITR could now determine not just refund timelines, but also how much extra they end up paying.