Income Tax

Ways to do ITR verification

ITR Verification (Income Tax Return) is the final step in filing it. If you do not verify your income tax return within 120 days of submitting it, it will be deemed invalid by the tax authorities.

Need for ITR verification

To minimize the probability of false ITR filing, every tax filer is obliged to verify that he or she filed the ITR and not someone else after submitting the ITR. When you file an ITR, the income tax department gets it but does not begin processing it (or checking). It is only once the return has been validated that the procedure of ITR processing begins. This is referred to as ITR verification. Moreover, refunds are also processed for only those returns that have been received and validated.

The Income Tax Department has implemented a rapid method for e-verifying income tax returns. You are not needed to log in to your income tax site as part of this new process. All you have to do is go to the income tax website’s home page and look for the E-Verify return option on the left-hand side (https://www.incometax.gov.in/iec/foportal). Thereafter, all you have to do after clicking on it is input your PAN, acknowledgment number, and appropriate A.Y. and then proceed with the e-verification procedure by using either Aadhar OTP or EVC.

You have 120 days to validate your return after uploading your ITR to the e-filing website. There are six methods for verifying your tax return. Among these, there are five electronic methods and one physical way to verify your ITR. These procedures are only applicable if you are filing Income tax returns that do not need to be audited, such as ITR-1, ITR-2, and ITR-4 for the fiscal year 2020-21. However, if you are filing tax returns that must be audited, you must use a ‘Digital Signature Certificate’ to verify your identity.

Here are the six methods for ITR verification:

• Aadhaar-based OTP verification
• Net banking
• EVC generated through bank account
• EVC generated through de-mat account
• Bank ATM
• Physical copy

Aadhaar-based ITR verification

To use the Aadhaar-based one-time password (OTP) to validate your ITR, your phone number must be connected to your Aadhaar and registered as such in the Unique Identification Authority of India (UIDAI) database. In addition, your Aadhaar must be linked to your PAN as well.

Select ‘I would want to verify using OTP on the mobile number registered with Aadhaar’ and click ‘Continue’ on the ‘E-Verify’ page of the e-filing portal. On your screen, a pop-up will display. You must check the box that says ‘I agree to validate my Aadhaar data’ and then click on ‘Generate Aadhaar OTP.’ Your registered mobile phone number will get an SMS with the 6-digit OTP. Enter the OTP obtained in the necessary field and press the submit button. Your ITR will be confirmed if you submit it successfully. The OTP is only valid for 15 minutes.

Net banking ITR verification

The second method of verifying your ITR is through net banking. You need to select ‘Through Net Banking’ and click ‘Continue’ on the ‘E-Verify’ page. Choose the bank where you wish to validate your ITR and click ‘Continue.’ A disclaimer will show on your screen in the form of a pop-up. Read and then press the ‘Continue’ button. Following that, you must log in to your bank account’s Net Banking from where you want to do ITR verification. Choose the E-Verify option, which is usually found under the ‘Tax’ tab. You will be routed to the income tax department’s e-filing website. Navigate to the relevant ITR form and choose E-Verify. Your tax return will be successfully e-verified.

Bank account ITR verification

The third method of validating an ITR is to generate an Electronic Verification Code (EVC) through the bank account of the assessee. To create EVC, you must have a pre-validated bank account. Keep in mind that pre-validation of a bank account is required in order to get an income tax refund.

Select ‘Through Bank Account’ on the E-Verify webpage and then click ‘Continue.’ The EVC will be produced and delivered to the mobile number and email address associated with your EVC-enabled and pre-validated bank account. Enter the EVC obtained on your mobile phone and the email address associated with your bank account, and then click E-Verify.

De-mat account ITR verification

The procedure of ITR verification through the de-mat account of an assessee is similar to verification using one’s bank account as mentioned above. Select ‘Through De-mat Account’ on the E-Verify webpage of the income tax portal and then click ‘Continue.’ The EVC will be produced and delivered to the mobile number and email address associated with your EVC-enabled and pre-validated de-mat account. Enter the EVC obtained on your mobile phone and the email address associated with your de-mat account, and then click E-Verify.

ITR verification through bank ATM

The EVC can also be created with a bank’s ATM card. This facility is only provided through a few banks, including Axis Bank, Canara Bank, the Central Bank of India, ICICI Bank, Kotak Mahindra Bank, State Bank of India, and IDBI Bank.

Swipe your ATM card at your bank’s ATM, input your ATM PIN, and choose ‘Generate EVC for Income Tax Filing’. Then, an EVC will be delivered to the mobile number and email address you provided when you enrolled with the e-filing system. Remember that your PAN must be registered with the bank. Select ‘E-Verify returns’ from the drop-down menu. Pick the ITR to be verified, and then select the ‘I already have an Electronic Verification Code (EVC)’ option. Enter your EVC code and click the E-Verify button.

Using a signed copy of ITR-V or Acknowledgement receipt

If you are unable to validate your ITR using any of the above-mentioned electronic means, you can send a signed copy of ITR-V (or Acknowledgement receipt) to the tax department. It is important to remember some steps if you want to send ITR-V to validate your income tax return.

The ITR-V is a one-page form that must be signed in blue ink. It must be sent either by standard post or by speed post. ITR-V cannot be couriered. The envelope should be delivered to this address of CPC Bangalore. “Income Tax Department – CPC, Post Box No – 1, Electronic City Post Office, Bangalore – 560100, Karnataka, India”.

You are not needed to provide any supporting documents with your ITR-V. When the tax department receives your ITR, you will be notified through SMS on your registered mobile phone and email address. This notification is simply for the receipt of the ITR-V; the notification for the processing of the tax return is different.

What if you don’t verify your ITR?

If an income-tax return is not verified, the income tax department will not accept it as a genuine return. Furthermore, if your ITR is not validated, it will not be accepted and taken up for processing by the tax department. In addition to this, any tax refund requested by you will be denied unless you have submitted a verified ITR and the same has been approved by the income tax department after processing.

If an ITR was not validated within the statutory time limit owing to a genuine cause, then an individual can make a condonation delay request on the e-filing portal of the income tax site. When submitting such a request, an individual will be requested to explain the reasons as to why the ITR was not verified earlier.

The Central Board of Direct Taxes (CBDT) has granted the income tax department a broad authority under section 119(2)(b) of the Income Tax Act, 1961 to accept an application or claim for any exemption, deduction, refund, or other relief after the term stipulated in the Act has expired. As a reason, the income tax department is now able to excuse delays in specified situations, such as failing to verify an income tax return within the statutory time limit of 120 days from the date of submitting the ITR.

The income-tax department will only accept a condonation delay request if it assures that the claim is correct and genuine, that the income for which the ITR is filed is not assessable in the hands of any other person, and if there was a genuine hardship faced by the assessee that hindered him or her from timely verifying the return.

Do make a note that you will not be able to file an ITR and get it processed until your delay condonation request is approved. It is important to know that there is no specific timeline for the acceptance or denial of a condonation proposal. However, such applications are often completed by the tax department within 3 to 4 months.

Conclusion

You must validate your income tax return in order to complete your tax filing (ITR) process. Taxpayers have 120 days to complete their ITR verification, according to the Income Tax Department. If you do not comply, the department will not process your ITR.

Read our article:Steps to Verify an Income Tax Notice