Revised Vs Belated ITR: What To Do If Your Tax Refund Is On Hold

Knowing revised and belated ITRs can help avoid penalties. (representative image)

The Income Tax Department has recently sent messages and emails to many taxpayers saying their refunds are on hold. The reason given is a mismatch in the income tax return (ITR) details. In these alerts, taxpayers have been asked to take action before December 31, this year, to fix the issue.

This has caused confusion, especially among those who believed they had filed their returns correctly. The department has also stepped up checks on cases where it feels excess refunds may have been claimed. As a result, many taxpayers are now unsure about the right way to respond.

In its email, the department reportedly stated, “As the time limit for filing of revised ITR for A.Y. 2025-26 will expire on 31 December 2025, you are requested to avail this opportunity to file Revised Return within the due date if so required. Alternatively, you may file an updated return w.e.f. 1 January 2026, however, subject to an additional tax liability.”

With the deadline nearing, it is important to understand the options available after the original ITR due date has passed.

What Is A Revised ITR?

A revised ITR allows taxpayers to fix mistakes made in the original return. These errors could include missing income details, wrong deductions, calculation errors, or choosing the wrong ITR form. Under Section 139(5) of the Income Tax Act, 1961, taxpayers can submit a revised return to correct such issues.

A revised ITR can also be filed if the refund amount needs to be increased or reduced based on corrected information.

What Is A Belated ITR?

A belated ITR is filed when a taxpayer misses the original filing deadline. As per Section 139(1) of the Income Tax Act, this return can be submitted until December 31 of the assessment year. However, filing late usually means paying a penalty.

Taxpayers who miss the deadline are advised to file a belated return instead of not filing at all, as non-filing can lead to further trouble.

Why File A Revised ITR?

A revised return is useful when the original ITR has errors. These may include underreported or overstated income, wrong deductions, incorrect refund claims, or other filing mistakes.

As quoted by Livemint, CA, Shefali Mundra, tax expert at ClearTax, says, “There is no penalty for filing a revised return within the prescribed timeframe.”

Revised ITR vs Belated ITR Explained

“A revised return is filed to correct errors or omissions in a previously filed return (either original or belated). It can be filed before 31 December of the relevant assessment year or before the department completes the assessment. The revised return is linked to the original filing, and the taxpayer can make corrections without any penalties, apart from paying any additional taxes and interest,” CA Mundra told Livemint.

She added that a belated ITR is treated differently.

“A belated return is filed after the original due date for submitting the return, which is typically 31 July for individual taxpayers. A belated return is still considered an original return, and it is subject to a late filing fee under Section 234F (up to Rs 5,000, depending on the income) and interest on unpaid tax. Additionally, certain benefits, such as carrying forward losses, may not be available when filing a belated return,” CA Mundra also stated.