ITR Filing Deadline Today: 70 Lakh Taxpayers at Risk of 70% Extra Tax—Are You One of Them?

The clock is ticking for millions of Indian taxpayers. Today marks the final ITR filing deadline for revised and belated returns for the Financial Year 2024-25 (Assessment Year 2025-26). As the window closes at midnight, latest data reveals that over 70 lakh taxpayers are still in the danger zone, with their returns either unfiled or stuck in processing due to discrepancies.

Missing this deadline isn't just a matter of paperwork; it is a significant financial risk. From January 1, 2026, the voluntary option to correct your tax mistakes disappears, leaving taxpayers vulnerable to heavy penalties and frozen refunds.

Why Today is the 'Do or Die' Date for Taxpayers

Under the current tax laws, December 31 serves as the ultimate cutoff for two critical actions:

• Belated Returns: For those who missed the original July/September window.

• Revised ITR: For those who need to correct errors in their already-filed returns.

Once this date passes, you lose the right to claim many deductions or exemptions on your own. If the Income Tax Department identifies a mismatch after today, they won't ask you to fix it—they will simply issue a tax demand notice.

The Penalty Trap: From 25% to 70% Extra

If you miss today’s ITR filing deadline, your only remaining path is filing an 'Updated Return' under Section 139(8A). While this facility is available for up to 48 months, it comes at a staggering cost:

• Within 1 Year: 25% additional tax on the aggregate of tax and interest.

• Within 2 Years: 50% additional penalty.

• Up to 4 Years: Penalties can skyrocket to 70%, plus applicable interest.

70 Lakh Returns Pending: Is Your Income Tax Refund Stuck?

The Central Processing Center (CPC) is currently grappling with a backlog. Out of 8.5 crore total filings, approximately 7.8 crore have been processed, leaving over 70 lakh taxpayers in limbo.

A significant portion of these pending cases involves "mismatch alerts." The department has been using advanced data analytics to flag discrepancies between Form-16 and the filed ITR.

• Common Red Flags: Unreported income from crypto, equity gains, or mismatches in HRA and political donation claims.

• The Consequence: If you’ve received a "nudge" or alert and fail to file a Revised ITR by tonight, your Income Tax Refund will remain frozen indefinitely.

Expert Take: "Don't Ignore the Mismatch"

Tax experts warn that silence is not a strategy. "The department's 'Nudge' campaign is a courtesy," says CA Viraj Mehta. "If you ignore a mismatch alert today, the department may treat it as concealment of income tomorrow. Under Section 270A, this can lead to penalties ranging from 50% to 200% of the tax evaded."

Quick Checklist Before Midnight:

1. Check your Email/SMS: Look for "Nudge" alerts from the IT Department.

2. Verify AIS/TIS: Ensure your ITR matches your Annual Information Statement.

3. Link PAN-Aadhaar: Today is also the deadline for specific PAN holders to link with Aadhaar to avoid the card becoming inoperative.

What Happens to Your Refund?

If your return is 100% accurate but delayed due to the department's processing speed, don't panic. You won't lose your money. In fact, the government pays a 0.5% monthly interest (6% per annum) on delayed refunds, provided the delay isn't your fault.

However, if an error is found and you didn't fix it by the ITR filing deadline, the interest stops, and the penalty starts.