Can your tax refund be denied if you missed filing ITR last year? Here are your options

Missing the deadline to file income tax return (ITR) doesn't always mean you can't claim a tax refund. If excess tax was deducted from your salary, bank interest, or other income in financial year 2024-25 (AY 25-26), you may still be able to receive the refund, but the options will be limited.

Since the deadline to file a belated return for FY25 already lapsed on December 31, 2025, taxpayers can no longer use that route to claim a refund. Hence, it is important to file your ITR within the original deadline, or at least before the end of the relevant assessment year to ensure a hassle-free refund and avoid additional procedural hurdles.

However, if you had a genuine reason which prevented you from filing your original or belated return, all hope is not lost. In certain cases, taxpayers may still have legal remedies to seek a refund, subject to the income tax department's conditions and approvals. Here's what your options are and whether you can still claim your tax refund despite missing the filing deadlines.

Can you claim tax refund by filing ITR-U?

An updated return can be filed if a taxpayer fails to file their tax return by its due date and missed the deadline for filing belated return as well. It can also be used in cases where a taxpayer had made an error or forgot to declare certain income details in their original, belated or revised return.

It can be filed within four years from the end of the relevant assessment year. You can file ITR-U for preceding 4 assessment years (48 months). For FY 2024-25, ITR-U can be filed between 1st April 2026 to 31st March 2030.

However, ITR-U cannot be filed for claiming or enhancing the tax refund amount, as per income tax law.

If not ITR-U, what else can you do to get a tax refund?

Now we know an updated return is not a viable option for taxpayers seeking a tax refund after both missing original and belated deadlines. However, those with genuine reasons for the delay may still opt for condonation of delay.

According to two experts who spoke to Mint, condonation of delay is a relief mechanism where the taxpayer requests the department to permit filing of a delayed return, especially where refund claims or carry forward of losses are involved. In this case, approval from the income tax department is required before such delayed claim is admitted.

A taxpayer who could not file ITRs within the prescribed due dates due to genuine hardship, such as prolonged illness, hospitalization, mental health issues, family emergency, death in family, natural calamity or other such issues, may seek relief through a condonation of delay application, according to Suraj Singh, Founder of SD Singh & Associates, Chartered Accountants.

A condonation application for claiming refund or carry forward of losses can generally be filed within six years from the end of the relevant assessment year, said Gaurav Makhijani, Managing Partner at MGA. He added that the application is examined on a case-to-case basis and is subject to satisfaction of the prescribed authority regarding genuineness of hardship and correctness of the claim.

This provision applies to every assessee or taxpayers, meaning salaried resident taxpayers, senior citizens, non-resident Indians (NRIs) and even freelancers can apply for condonation of delay if applicable, both experts confirmed.

Can a tax refund be rejected?

Yes. Filing a condonation of delay application does not guarantee that your refund will be approved. Under Section 119(2)(b) of the Income Tax Act, the I-T department has the discretion to condone the delay if the taxpayer can prove genuine hardship and submit valid reasons for missing the filing deadlines.

Since this is a discretionary relief, taxpayers must submit a well-supported application backed by relevant documents. The approval threshold is high, and requests are considered on a case-by-case basis, meaning not every application is accepted by the tax authority.

According to Singh, the taxpayer should submit documentary evidence proving the reason for delay, and the correctness of the refund/loss claim. The following documents are required:

• Medical records or hospitalisation paper and doctor’s certificates
• Death certificate of family member (if applicable)
• Evidence of accident/natural calamity
• Passport/travel documents (for NRIs)
• Proof of refund due
• Affidavit/explanatory letter

After the taxpayer submits the required documents, the authority examines whether the hardship is genuine and whether the claim is bona fide, and then accepts or rejects the request.