Taxpayers Alert: December 31 Marks Deadline For Belated ITR, PAN-Aadhaar Link, GST Returns

December 31 is not only the last date for the calendar year of 2025, but a deadline too for a bucket of tax-related activities spanning from belated Income Tax Return (ITR) filing to Annual GST returns.

From income tax returns to GST filings and PAN-Aadhaar linking, missing this deadline could mean higher penalties, loss of benefits, or restricted financial transactions.

For income-tax payers, December 31 marks the last date to file a belated Income Tax Return (ITR) for the Assessment Year 2025–26. This option is meant for individuals who missed the original filing deadline. However, filing a belated return comes with costs. Taxpayers may have to pay a late fee of up to Rs 5,000, along with interest on any unpaid tax. More importantly, certain

benefits, such as carrying forward specific losses, are not available if the return is filed late. If this deadline is missed, taxpayers will have to opt for an updated return later, which may attract additional tax liability.

The same date is also important for businesses and GST-registered entities. December 31 is the due date for filing GST annual returns for the relevant financial year. The annual return consolidates details of outward supplies, input tax credit claimed, taxes paid, and refunds received during the year. Delays or errors in filing can invite late fees, notices, or scrutiny from tax authorities, making year-end compliance critical for businesses.

Adding to the list, December 31 is also the last date to link PAN with Aadhaar for those who have not completed the process yet. Failure to link PAN with Aadhaar can lead to PAN becoming inoperative from January 01, 2026. Taxpayers won’t be able to file ITR, investing in mutual funds, opening bank accounts and conducting high-value transactions.

Tax experts advise taxpayers to act early rather than wait until the final day, as last-minute technical glitches or documentation issues can cause delays.