December has turned into a critical month for taxpayers, bank customers, and government pensioners. Several mandatory financial tasks must be completed within this month to avoid penalties, blocked transactions, or even suspended pension benefits. From income tax filings to Aadhaar–PAN linking, multiple important deadlines are approaching fast. Delaying any of these could lead to unnecessary financial trouble.
ITR Filing Deadline for Audit Cases Extended
The Central Board of Direct Taxes has extended the income tax return filing deadline for taxpayers who are required to undergo a tax audit. Businesses and professionals can now file their returns for Assessment Year 2025–26 till December 10. This extension offers relief to those facing delays due to audits and documentation issues.
Deadline for Belated and Revised ITRs
Taxpayers who either missed filing their FY25 income tax return or want to correct errors in their already filed return must submit their belated or revised return by December 31. If this deadline is missed, the following penalties may apply:
A late fee of up to Rs 5,000. If total income is below Rs 5 lakh, the late fee is limited to Rs 1,000.
Interest will continue to be charged on unpaid tax until the return is filed.
After December 31, taxpayers will only be able to use the ITR-U or Updated Return option. This facility allows corrections for up to two years but comes with an extra tax burden of 25 percent to 50 percent of the total tax and interest payable.
Aadhaar–PAN Linking Deadline
Individuals who received their Aadhaar card on or before October 1, 2024, must link it with their PAN by December 31, 2025. If PAN is not linked with Aadhaar, it will become inoperative. This can directly affect income tax filing, major financial transactions, investments, and routine banking services. Keeping PAN active is necessary for uninterrupted financial access.
Important Compliance Changes That Ended in November
Some key financial deadlines were already completed in November, and missing them may impact certain users:
The State Bank of India permanently discontinued its mCASH facility on November 30. Customers must now use UPI, IMPS, NEFT, or RTGS for fund transfers.
Government pensioners were required to submit their annual life certificate by November 30. Failure to do so may result in temporary suspension of pension payments until verification is completed.
Central government employees who wanted to shift from the National Pension System to the Unified Pension Scheme had to exercise their option by November 30. Those who switched can return to NPS later, but only once.
Why December Is Financially Important
December is the final low-cost compliance window before stricter penalties and higher charges come into effect. Completing these tasks on time ensures smooth financial operations, including tax filing, pension credits, banking services, and investment activities. Timely action now can help avoid legal issues, financial losses, and last-minute stress.
