As the last month of 2025 begins, taxpayers have a few crucial deadlines to avoid penalties and future hassles. This explainer breaks down four key income-tax related tasks that must be completed by 31 December.
For individuals and businesses whose accounts are liable for tax audit, the final date for filing the income tax return for FY 2024–25 is 10 December 2025. Missing this deadline can invite penalties and complications during assessment, especially if large transactions have already been reported through TDS or AIS.
The last instalment of advance tax for the financial year is due by 15 December. Advance tax is mandatory if, after considering TDS and TCS, your total tax liability is more than ₹10,000. Not paying on time can lead to interest under sections 234B and 234C, increasing your final tax outgo.
If you haven't sent in your income tax return for FY 2024–25 yet, there's still time - just do it before 31 December 2025, though a penalty applies. People earning under ₹5 lakh pay ₹1,000 late charge; those making ₹5 lakh or higher might owe up to ₹5,000 instead. Even if delayed, submitting helps get money back, move losses ahead, so staying on track matters.
If your Aadhaar came before or right at 1 October 2024, tie it to your PAN by end of December. Skip this step, then your PAN stops working - banking gets tough, investing slows down, demat moves freeze, tax returns stall. Hook them up through the tax website with PAN, Aadhaar plus an OTP; delay means paying extra.
You must file ITR not just because of earnings, yet when big financial moves happen. Most people have to report if they earn more than ₹2.5 lakh yearly - also true if their power bills cross ₹1 lakh in a year. Owning property abroad counts too; it triggers the requirement without exception. Running a trade or profession bringing in over ₹10 lakh means you're included. When total sales go past ₹60 lakh, filing is no longer optional. A bank savings balance topping ₹50 lakh during the year will pull you into this rule. Spending beyond ₹2 lakh on overseas trips? That’s another red flag. Plus, if your tax deducted at source hits ₹25,000 - or ₹50,000 for those aged 60+ - you’ve got to submit returns.
