More than 70 lakh taxpayers yet to file ITR:Deadline ends today, late filers may pay 25-70% extra tax

Today is the last day to file revised or belated returns for FY2024-25. After 31 December 2025, you won’t be able to make any changes to your return on your own. Currently, there are more than 70 lakh taxpayers in the country whose returns have not yet been processed. A large number of these are people whose refunds are stuck. The department has also sent alerts to many taxpayers about discrepancies between Form-16 and ITR. According to rules, as soon as the December 31 deadline ends, the taxpayer will lose the voluntary revision option. After this, you won’t be able to claim any deductions or exemptions on your own. If the department finds any discrepancy, they will directly issue a notice or demand. Missing the deadline could result in 25% to 70% higher tax payment According to CA Viraj Mehta, Chairman of Direct Tax Committee of Chamber of Tax Consultants, if you don’t revise your return by December 31, you will only be left with the option of filing an ‘Updated Return’ (u/s 139(8A)) later. This facility is available for 4 years, but you will have to pay a heavy penalty. 25% in the first year, 50% in the second, and this penalty can go up to 70% by the fourth year. Interest will have to be paid separately. 7.8 crore processed out of 8.5 crore returns According to the department’s latest data, approximately 8.5 crore ITRs have been filed and verified till December 28. Out of these, about 7.8 crore returns have been processed, but more than 70 lakh returns are still pending at the Central Processing Center (CPC). More than 21 lakh revised returns have been filed so far this year. Experts believe that in most cases where refunds are stuck, the department has raised questions about data discrepancies or claims like political donations. Will the refund be lost if delayed? No, the refund doesn’t go anywhere. December 31 is only the deadline for correcting returns, not for receiving refunds. If your return is correct and there’s a delay in processing due to the department, they will give you interest along with the refund. However, if any discrepancy is found in the return and you haven’t corrected it by December 31, the refund will remain frozen until the department’s concerns are resolved. Up to 200% penalty for ignoring mismatch According to Rohit Jain, Managing Partner of Singhania Company, if the department has sent you a mismatch alert and you have ignored it, you could be in trouble after December 31. The department may consider this as a case of concealing income. In such cases, under Section 270A, a penalty ranging from 50% to 200% of the tax evasion amount can be imposed. How much time does the government have for processing? According to tax expert Gopal Bohra, the CPC has 9 months after the end of the filing year to process returns. For example, if you filed a return in July 2025, the department has until March 31, 2026 to process it. However, there is no fixed timeline for issuing refunds, but typically the money is credited to the account within a week of processing. How much interest is paid on delays? According to income tax law, if there is a delay in refund, the department pays simple interest to the taxpayer at the rate of 0.5% per month. This amounts to 6% annually. This interest is payable when the delay is due to department’s fault, not due to incorrect information provided by the taxpayer.