ITR filing AY2024-25: Filing your returns is a lengthy task and therefore, should be planned step by step. While the deadline of filing your Income Tax Returns (ITR) was July 31, just filing the returns is not enough. It is crucial to highlight that the Income Tax Return (ITR) process goes beyond simply submitting the return. Verifying the ITR is pivotal in completing the filing procedure and ensuring its acceptance by the Income Tax Department. The government has introduced various methods to simplify and expedite the ITR verification process. These measures aim to enhance efficiency and accuracy in tax filings.
The Press Information Bureau stated: “The process of e-verification is important to commence the processing of ITRs and to issue refunds, if any. It is encouraging to note that over 6.21 crore ITRs have been e-verified, out of which more than 5.81 crore are through Aadhaar-based OTP (93.56%). Of the e-verified ITRs, more than 2.69 crore ITRs for the A.Y. 2024-2025 have been processed (43.34%) till 31st July, 2024. Taxpayers are also requested to verify their unverified ITRs if any, within 30 days of filing the ITR.”
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30-day deadline
Before August 1, 2022, the time limit to e-verify your ITR was 129 days. From August 2022, the Income Tax Department issued a notification reducing the time limit for e-verification or hard copy submission of ITR-V to 30 days. This means taxpayers must now verify their returns within 30 days from the date of filing to successfully complete the process.
The notification specified that the previous time limit of 120 days will still be applicable for returns submitted electronically prior to the implementation date of the notification, which is August 1, 2022.
If the income tax return (ITR) data is transmitted electronically and the ITR-V is submitted within 30 days of such transmission, then the date of electronically transmitting the data will be deemed as the date of furnishing the income tax return.
What if you miss the 30-day deadline
When the ITR data is electronically transmitted but the e-verification or ITR-V submission surpasses the 30-day time limit from the transmission of data, the date of e-verification/ITR-V submission is considered as the date of furnishing the income tax return. Consequently, all consequences of late filing under the Income Tax Act will be applicable.
Therefore, if you have submitted your Income Tax Return for Assessment Year 2024-25 (Financial Year 2023-24) on or before July 31, 2024, ensure that you verify it within 30 days from the filing date. Failure to complete the verification within the stipulated period and doing so after July 31, 2024, will result in a penalty of Rs 5,000 under Section 234F. The verification date will be recognised as the filing date by the income tax department.
Furthermore, if your filed ITR remains unprocessed, any potential income tax refund will not be issued, and it will be assumed that you have not submitted your Income Tax Return.
Condonation Request
If you do not verify your return in a timely manner, it will be considered as not filed, leading to the imposition of penalties and late fees as per the Income Tax Act, 1961. In case of failure to verify, you can request condonation of delay by providing a valid reason. The e-Verification process can only be completed after submitting this condonation request, and your return will only be deemed valid once it has been approved by the competent Income Tax Authority.
How to go about e-verification
The Aadhaar OTP (One-Time Password) is a unique code generated using the Aadhaar number and sent to the designated mobile number of taxpayers. By inputting this OTP on the income tax portal, the verification of their return is promptly completed.
Electronic Verification Code (EVC) is another method for verification. An EVC can be generated through a pre-validated bank account or DEMAT account. The EVC is sent to the registered mobile number and email address linked to the account, enabling individuals to e-verify their return conveniently.
Net Banking is a convenient option for individuals looking to conduct transactions online. This service allows users to verify their Income Tax Returns (ITR) through their respective bank accounts. Many prominent banks in India offer net banking services, enabling users to log in to their accounts and authenticate their ITR quickly and efficiently.
A Digital Signature Certificate (DSC) is especially advantageous for businesses and individuals with audited accounts. A DSC enhances the security of online transactions and is mandatory for certain taxpayer categories. It ensures a secure and trustworthy verification process, giving users peace of mind when submitting important financial documents.