December 2025 is not just the last month of the year, but also the last chance to meet several important tax deadlines. Here are two financial tasks with a deadline of December 31st. It's crucial to complete these tasks on time to avoid any regrets later.

December, the last month of 2025, is here. Some important financial tasks need to be completed before the end of December. Today is the 17th, so you only have 14 days left to complete them. If these tasks are not completed on time, you may face fines, penalties, and various other problems. Here are two important tasks that must be completed before December 31st.

First task - Filing a belated Income Tax Return

If you haven't filed your Income Tax Return for the financial year 2024-25 yet, you have until December 31, 2025. You will have to pay a late fee while filing it. The late fee will be applied as follows:

What are the consequences of not filing a belated ITR on time?

If you do not file your belated Income Tax Return (ITR) by December 31st, you will face the following consequences:

No Income Tax Refund

If your return includes a refund, the delay may cause the money to be withheld or even completely forfeited.

Additional interest along with late fees

Failure to file ITR on time can result in both penalties and interest under the Income Tax Act, increasing your tax burden.

Damage to your tax record

Consistent delays weaken your tax profile, which can affect future loans, visas, and financial planning. The risk of receiving an income tax notice increases.

The department keeps a closer watch on those who do not file their ITR on time, which increases the likelihood of receiving a notice.

Therefore, it is best not to postpone ITR-related tasks until the last minute and file your return before the deadline to avoid any problems later.

Second important task - Linking Aadhaar and PAN is mandatory

If you obtained your Aadhaar card on or before October 1, 2024, and have not yet linked it to your PAN, then it is mandatory to do so by December 31, 2025. If Aadhaar and PAN are not linked:

• Your PAN card may become inactive.


• Banking and investment-related transactions may be stalled.


• You may face difficulties in filing your ITR.

You can easily link your PAN and Aadhaar by visiting the Income Tax e-filing portal and using your PAN number, Aadhaar number, and OTP. A penalty will also have to be paid for this.

How to link PAN and Aadhaar

• To link PAN and Aadhaar, go to the Income Tax e-filing portal (incometax.gov.in).


• Select 'Link Aadhaar' in 'Quick Links'.


• Fill in the details by verifying your PAN, Aadhaar number, and mobile number with an OTP, and pay any applicable fees through e-Pay Tax.


• Then your PAN will be linked to your Aadhaar.


• You can also do this by logging in and going to the profile section, or by sending an SMS from your registered mobile number (UIDPAN <12-digit Aadhaar> <10-digit PAN> to 567678).

FAQs

Q1. What is a Belated Income Tax Return?
If a taxpayer fails to file their income tax return by the stipulated deadline, the return they file later is called a belated ITR.
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Q2. Can a belated ITR be filed after December 31st?
No. Filing a belated ITR will not be allowed after December 31, 2025.

Q3. Will the PAN be permanently cancelled if it is not linked to Aadhaar?
No, but the PAN will become inactive. It can be reactivated after linking.

Q4. Where can I link my Aadhaar and PAN?
This process can be completed on the Income Tax e-filing portal.