Filing income-tax return after July 31? Verify within 30 days, say experts

Use any one of six methods of verification available

Besides meeting the July 31 deadline for filing the income-tax return (ITR), taxpayers must also remember to verify it. An important development in this regard has been that the Central Board of Direct Taxes (CBDT) has reduced the time limit for ITR verification for taxpayers who failed to meet the deadline.

Ankit Jain, partner, Ved Jain & Associates, says, “Taxpayers who were able to meet the deadline of July 31, 2022 for filing ITR have 120 days after the filing of their return to verify it. But those who file the return after the deadline will get only 30 days to verify it.”

The significance of verification

The return must be verified to ensure its authenticity. Sandeep Bajaj, managing partner, PSL Advocates & Solicitors, says, “The Electronic Verification Code (EVC) is used to verify the identity of the person furnishing the return of income.” This ensures that the ITR is not filed by someone without the taxpayer’s consent, as an incorrect return has serious consequences.

If you fail to verify

Failure to verify ITR within the prescribed period has consequences. Moiz K. Rafique, managing partner, Privy Legal Service LLP, says, “Such an ITR will not be taken up for processing by the tax department till it is verified.”

The tax department will assume that the taxpayer didn’t file his return for that year. Jain adds, “A person who is unable to verify his return on time should apply for condonation of delay, providing the reasons. He may then be allowed to verify his return.”

Six ways of verification

There are six ways to verify an ITR—via a Digital Signature Certificate, one-time password (OTP) on the mobile number registered with Aadhaar, bank account EVC or demat account EVC, net banking, at a bank ATM, and by sending a signed ITR-V.

Bajaj says, “Of these, five methods are electronic and one is physical. These methods can only be used for tax returns that don’t have to be audited. Those returns that have to be audited must be verified using the Digital Signature Certificate.”

The most popular method is to use the OTP generated through Aadhaar. Jain says, “The taxpayer must ensure that his mobile number is linked to his Aadhaar and his Aadhaar is linked to his PAN.” The taxpayer can then log into the income-tax portal, navigate to the e-verification option, and submit a request for OTP generation. When it comes on the mobile number linked to Aadhaar, he should furnish it on the tax portal.

OTP/EVC can also be generated through a bank account or a demat account updated on the income-tax website. Only a limited number of banks offer this facility. On the e-verification page, select the bank account option to generate the EVC.

The process for verifying ITR using a demat account is similar. The demat account, too, must be pre-validated.

Another option is to verify via an ATM. Visit the ATM and generate the EVC at the machine using your debit card or ATM PIN. Your PAN must be linked to that account. You will get the EVC on your mobile phone and email.

In the offline mode, you can send a signed copy of the tax acknowledgement to the Central Processing Centre of the Income-Tax Department in Bengaluru. Jain adds, “They validate the signature against the signature present in their records and issue an acknowledgement via email or SMS.”

Use either ordinary post or speed post, not a courier service, and sign the tax acknowledgement using blue ink.

A taxpayer who didn’t verify last year’s return should not avoid filing or verifying this year’s return. V.M. Kannan, senior associate, SKV Law Office, says, “There is no bar on a person to file ITR for AY 2022-23 in case he has not verified the ITRs of previous years. However, if the past year’s ITR has not been verified and is treated as non-est, the possibility of action, including prosecution, can’t be ruled out.” Non-est means absent or not there.

e-verification methods and prerequisites

Method

• Digital Signature Certificate
   

What you require
 

• Valid and active DSC
• emSigner utility 
• installed and running on your PC
• Plugged-in DSC USB token in your PC
• DSC USB token procured from a certified authority provider 
• The DSC USB token is a Class 2 or Class 3 certificate

Method
 

• OTP on mobile number registered with Aadhaar

What you require
 

• PAN linked to Aadhaar card

Method
 

• Bank account EVC/demat account EVC

What you require
 

• Pre-validated and EVC-enabled bank or demat account

Method
 

• Netbanking

What you require
 

• PAN linked with bank account and netbanking should be enabled for preferred bank account