Receiving Income Tax notices? Nothing to worry, just revise your ITR | Experts explain

New Delhi: Several taxpayers have received Income Tax notices seeking details of foreign assets. However, there is nothing to worry as notices are common and are routinely sent by the I-T department. The recipients are advised to revisit the income tax return (ITR) within the prescribed deadline of December 31 with correct information.

According to the income tax rules, after December 31, taxpayers will only have the option of filing ITR-U (Updated Return), in which neither a refund can be claimed nor is there complete freedom to correct mistakes. Therefore, it is very important to take timely action.

The Income Tax Department is now examining the ITR as part of the risk management process. If any discrepancy, mismatch or doubt is found in the refund claim, the processing of the return is stopped. This is why alert messages are being sent to taxpayers, so that they can correct their mistakes in time.

The last date for filing revised ITR and belated ITR for the assessment year 2025-26 is 31 December 2025. After this day you cannot make any changes to your returns, no matter how small the mistake is. If the CPC processes your ITR after this date and reports any mistake, you will not get any refund.

If your ITR falls short and you did not file the revised return before 31st December, then you will only have the option of ITR U. But you can't claim a refund. That means if you were to get a refund properly, then that too can get out of hand. Additional tax is also required to be paid on filing ITR (U) from above.

Many people think that the rectification application will work later, but this is not entirely correct. Rectification is limited to obvious errors such as calculation errors or TDS mismatches. You cannot add new deductions, new income or new refund claims through this.

Chartered accountants say that a large number of ITRs have not been processed till now. It is expected that many returns will come under scrutiny after 31 December 2025. If a mistake is found then, the taxpayer will have to bear the loss, no matter the fault of the system delay.

Apparently the Income Tax department has sent mass intimation to almost everyone whose tax refund is pending. This, according to my CA, is to buy themselves some time. If this intimation is given after December 31, IT department would have to release the refunds for all those who have claimed.

If you have received any alert or notice from the Income Tax Department, check your ITR immediately. Correct any mistake, mismatch or incomplete information by filing revised ITR before 31st December 2025. Otherwise, a valid refund may get stuck and further legal and financial problems may increase.

Commenting on the I-T notices, P Sridhar, Chartered Accountant and Senior Partner at Chinnappa and Associates, Bengaluru, said, A lot of his clients are getting these messages, but no emails. It seems like IT Department has sent mass intimation to almost everyone whose tax refund is pending. If an ITR remains unprocessed after December 31, the IT department can no longer process it. But the taxpayer still retains the right to receive the refund. Therefore, the Department must inform that it has processed the return before December 31 so that they retain the right to issue refund. It is more of a technicality.

"Saying that, if you have received the SMS, do not panic. IT Department carries out additional checks on cases that are flagged -- where the refund might be disproportionate to the income. Quite often, income tax refunds get stuck due to minor procedural or technical issues rather than any problem with the taxpayer’s return. Go through your returns to check for any discrepancies and re-file only if necessary," Sridhar added.

"It was noticed that a claim of refund has been made in the Income-Tax Return for PAN: XXXXXXXX, for AY: 2025-26 filed by you.

Processing of the said return was held as it was identified under risk management process on account of certain discrepancies in the claim of refund. An email with details has also been sent to your registered email address.

As the time-limit for filing of revised return of income for A.Y. 2025-26 will expire on 31/12/2025, you are requested to avail the opportunity to file revised return within the due date. An updated return may be alternatively filed from 01.01.2026, however with additional tax liabilities.

In case a revised return has already been filed on the referred issue, kindly ignore this message.

Warm regards

Income Tax Department"