Tomorrow is the last day to file ITR: More than 70 lakh returns still pending; If you miss the deadline, you may have to pay 25%-70% more tax.

Tomorrow is the last day to file revised or belated returns for 2025-26. After this you will not be able to make any changes in the returns from your side. At present, there are more than 70 lakh taxpayers in the country whose returns have not been processed yet. A large number of these are those whose refund is stuck.

The department has also sent alerts to many taxpayers regarding the difference between Form-16 and ITR. According to the rules, as soon as the deadline of 31st December ends, the option of voluntary revision will be lost from the taxpayer. After this you will not be able to claim any deduction or exemption as per your wish. If the department finds any irregularity, it will directly issue a notice or demand.

If you miss the deadline, you may have to pay 25% to 70% more tax.

According to CA Viraj Mehta, Chairman, Direct Tax Committee, Chamber of Tax Consultants, if you do not revise the return by December 31, then later you will be left with only the option of ‘Updated Return’ (u/s 139(8A)).

This facility is available for 4 years, but you will have to pay a heavy penalty. This penalty can go up to 25% in the first year, 50% in the second, and 70% by the fourth year. Apart from this, interest will have to be paid separately.

Out of 8.5 crore returns, 7.8 crore were processed

According to the latest data of the department, till December 28, about 8.5 crore ITRs have been filed and verified. Of these, about 7.8 crore returns have been processed, but more than 70 lakh returns are still pending in the Central Processing Center (CPC).

More than 21 lakh revised returns have been filed so far this year. Experts believe that in most of the cases of people whose refunds are stuck, the department has raised questions on claims like data manipulation or political donation.

Will the refund be lost if there is a delay?

No, the refund doesn’t go anywhere. The date of December 31 is only for correction of returns and not for getting refund. If your return is correct and there is a delay in processing due to the department, then the department will give you a refund along with interest.

But if an error is found in the return and you do not correct it by December 31, the refund will be frozen until the department resolves it.

If mismatch is ignored, penalty up to 200%

According to Rohit Jain, Managing Partner, Singhania & Company, if the department has sent you a mismatch alert and you ignored it, then you may be in trouble after December 31. The department may consider this a case of hiding income. In such a situation, under Section 270A, penalty ranging from 50% to 200% of the amount of tax evasion can be imposed.

How much time does the government have for processing?

According to tax expert Gopal Bohra, CPC has 9 months after the end of the year in which the return is to be filed. For example, if you filed your return in July 2025, the department has time till March 31, 2026 to process it. Although there is no fixed time limit for issuing refunds, the money is usually credited to the account within a week of processing.

How much interest is received on delay?

According to the Income Tax Act, if there is a delay in the refund, the department pays simple interest at the rate of 0.5% per month to the taxpayer. This works out to 6% per annum. This interest is available when the delay is due to the fault of the department and not due to wrong information provided by the taxpayer.

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