Finance compliance deadlines in December: Tax filing to pension document

Taxpayers and pensioners must complete mandatory tasks like ITR filing and Aadhaar-PAN linking by year-end to avoid penalties, interest liabilities and suspended benefits

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Certain taxpayers, bank customers and government pensioners have to complete compliance tasks in December to avoid transaction disruptions, penalties or suspended benefits.

 

ITR filing for tax audit cases, December 10

The Central Board of Direct Taxes has extended the last date for filing income tax returns for assessees requiring audit. The new deadline, December 10, gives businesses and professionals additional time to complete their filings for assessment year 2025–26.

 

Belated and revised returns. December 31

Taxpayers who have not filed their return for FY25, or those who need to correct a previously filed return, must complete the process by December 31.

 

Delaying return attracts:

 

A late fee of up to Rs 5,000 (Rs 1,000 for individuals with income below Rs 5 lakh).

 

Interest on any unpaid tax until the date of filing.

 

A revised return enables taxpayers to rectify errors or omissions but this option expires on December 31. After that, only the Updated Return (ITR-U) route remains open. Although ITR-U allows corrections beyond the normal timelines, it carries an additional liability of 25 to 50 per cent over and above the tax and interest payable.

 

Aadhaar–PAN linking, December 31

Individuals who received Aadhaar on or before October 1, 2024 must ensure that their PAN is linked by 31 December 2025. An inoperative PAN restricts a wide range of activities, including:

 

Income Tax return filing

• High-value financial transactions
• Investments and banking operations
• Keeping PAN active is essential for uninterrupted access to financial services.

 

What changed after November deadlines?

 

SBI mCASH discontinued

 

State Bank of India withdrew its mCASH service on November 30. Customers can no longer send money without registering a beneficiary or receive funds via the mCASH link. SBI has advised users to shift to established digital payment modes such as UPI, IMPS, NEFT and RTGS.

 

Life certificate submission deadline ends 

Government pensioners were required to submit their annual Life certificate by November 30. Non-submission may lead to suspension of pension credits until the verification is completed.

 

NPS to UPS switch facility ended

 

Central government employees wishing to move from the National Pension System to the Unified Pension Scheme had to opt in by 30 November. Those who shifted to UPS have a one-time option to return to NPS later.

 

Why December is critical

December serves as the final low-cost compliance window for taxpayers, pensioners and PAN holders. Timely action ensures that routine financial operations, from pension credits to income tax filings, continue without interruption. For individual taxpayers, especially, completing filings before the month ends can prevent avoidable penalties and preserve refund rights.