ITR Refund Delay: Miss Dec 31 Revision Deadline, Face Penalties & Extra Tax!

• Over 70 lakh ITRs for AY 2025-26 are pending processing, many with refund claims, due to discrepancies or system errors.
• December 31, 2025, is the strict deadline for self-revising ITRs; revision is impossible afterward, irrespective of processing status.
• Missing the revision deadline means limited options; an Updated Return (ITR-U) can be filed but incurs 25-70% extra tax.
• Pending ITRs do not cancel refunds; the tax department pays 6% annual interest on delays not caused by the taxpayer.
• Ignoring mismatch alerts and not revising by Dec 31 can lead to tax demands under Section 143(1) and penalties up to 200%.

Why It Matters: Act fast on ITR discrepancies before Dec 31 to avoid penalties and ensure timely refunds.