Dec 31 ITR Deadline Looms: Taxpayers Face Costly Options Post-Cutoff

• December 31 is the final deadline for filing belated and revised Income Tax Returns (ITRs) for the current assessment year.
• Missing the Dec 31 deadline leaves only the 'updated return' (ITR-U) option, which incurs significantly higher additional taxes (25-70%) and restrictions.
• Revised returns (Section 139(5)) allow corrections to on-time filings without penalty, permitting loss carry-forward and refunds, but also close on Dec 31.
• Belated returns (Section 139(4)) for missed original deadlines attract penalties up to Rs 5,000 and restrict loss carry-forward, with Dec 31 as the last chance.
• Experts advise timely filing to avoid increased compliance costs, loss of benefits, and stricter conditions associated with updated returns.

Why It Matters: Act before Dec 31 to avoid higher costs and restrictions on ITR corrections and filings.