Missed ITR Deadline? How To Claim Refund And Fix Mistakes Before December 31

Income Tax Return 2025-26: Missing the July 31 income tax return deadline does not mean taxpayers have lost their chance to file. For Assessment Year 2026-27, a belated return can still be filed until December 31, 2026. But delaying the filing can have consequences that go well beyond the late fee.

For taxpayers filing late, the fee is Rs 5,000, or Rs 1,000 if total income is below Rs 5 lakh, along with 1 per cent a month interest on unpaid tax. More importantly, a belated return can mean losing the ability to carry forward certain losses, including capital, business and F&O (futures and options) losses.

"According to a report, roughly 1.5 crore people file late every year based on the gap between returns filed by the deadline and the final AY 2025-26 total. That's nearly one in six filers. Most of them worry about the wrong number. The late fee is Rs 5,000, or Rs 1,000 if your income is under Rs 5 lakh, plus 1 per cent a month interest on unpaid tax. That's the small cost. Two bigger ones are that you get locked into the new regime and your losses die. Capital losses, business losses and F&O losses cannot be carried forward," said Vibhore Goyal, Founder & CEO, OneBanc Technologies.

A missed deadline does not automatically mean losing a tax refund. Taxpayers can still claim an eligible refund by filing a belated return before December 31. However, taxpayers need to ensure that the return is properly verified for the refund to be processed. The Income Tax Department has prescribed a 30-day window for e-verification.

Goyal also recommends checking the Annual Information Statement (AIS) before filing. "Salary gets reported for you. Capital income is where the gaps are, and that's exactly where the department's data is sharpest," he said, pointing to dividends, mutual fund redemptions and buybacks as areas taxpayers need to track carefully.

Taxpayers who discover an error after filing can submit a revised return. For AY 2026-27, the revised return can be filed until March 31, 2027, or completion of assessment, whichever is earlier. A revised return replaces the earlier return and must be verified again. However, revising a belated return does not restore benefits already lost because of late filing, such as the ability to carry forward certain losses. If December 31 is missed, the taxpayer's route shifts to an updated return, or ITR-U. An ITR-U cannot be used to claim a refund.

For taxpayers who have missed the deadline, the practical approach is therefore to file the belated return as soon as possible, check the AIS for discrepancies and complete the verification process within the prescribed time.