The Central Board of Direct Taxes (CBDT) has issued a notification making changes in the ITR-V and acknowledgement forms. Form ITR-V stands for ‘Income Tax Return-Verification’ Form. The verification form is a single-page document provided to individuals when they file their Income Tax Returns online without using a digital signature.
The CBDT issued the notifications on March 27, 2024, for the changes made in the Income Tax Act, 1961, as announced in the Budget 2023. The forms are effective from April 1, 2024.
The Income Tax Department sends ITR-V to taxpayers via email. Taxpayers can download it from the e-filing website. Verifying the ITR is crucial. Verification can be manual by sending a signed ITR-V to the CPC, Bangalore, or online.
The ITR-V has added two instructions for the taxpayers:
> Wherever ITR data is electronically transmitted and ITR-V is submitted within 30 days of transmission of data, in such cases the date of transmitting the data electronically shall be considered as “the date of furnishing the return of income”.
> Where ITR data is electronically transmitted but ITR-V is submitted after the time limit of 30 days of transmission of data, in such cases the date of ITR-V submission shall be treated as “the date of furnishing the return of income”. All consequences and terms of late filing of return under the Income-tax Act, 1961 shall be applied.
This means, if a taxpayer verifies the income tax return within 30 days of filing, the submission date of the ITR form is considered the filing date. But if the verification is done after 30 days, it would make the verification date the filing date, potentially leading to consequences for late filing.
In 2022, the income tax department reduced the time limit for verifying ITR from 120 days from date of filing ITR previously to 30 days.
In a notification issued on July 29, 2022, the Central Board of Direct Taxes (CBDT) stated that this new rule regarding ITR verification will be effective from August 1, 2022. The CBDT notification also stated that the reduced time limit of 30 days is applicable to ITRs filed on or after August 1, 2022; for individuals who have filed ITRs on or before July 31, 2022, the time limit to verify continues to be 120 days.
It is to be noted that if a taxpayer files the ITR for AY 2023-24 (FY 2022-23) on or before July 31, 2023, then they should ensure that the same is verified within 30 days from the date of filing. If one fails to verify it within 30 days and verifies the same after July 31, 2023, then a penalty of Rs 5,000 under Section 234F will be applicable.