Aadhaar OTP, electronic verification: Ways to verify Income Tax return

If you fail to complete the process, your return is treated as not filed and it will attract all the consequences of not filing ITR under the Income Tax Act, 1961

Millions of Indians are preparing to file their Income Tax Returns (ITR) as the deadline for the process nears. However, the process doesn't end with just filing the return. Verification of the ITR is a crucial step that completes the filing process and ensures its acceptance by the Income Tax Department. To simplify this procedure, the government has introduced various methods for ITR verification.

 

E-verification is the most efficient way to complete this requirement. It allows you to verify your tax return electronically, without the need to print, sign, and physically mail the ITR-V form.

 

Dheeraj Basantani, associate partner at Forvis Mazars, said: “ITR must be verified within 30 days from the date of filing return of income. If the ITR submitted is verified beyond the time-limit of 30 days, in such cases date of verification shall be treated as date of furnishing of return and all consequences of late filing of return shall apply. For instance – date of filing of ITR is 25th July, date of verification is 30th August. In such case, since ITR is verified post due date (i.e 31st July, in case of individuals), date of filing shall be deemed to be 30th August.”

 

 

Here are the various ways taxpayers can verify their ITR:

 

Aadhaar OTP: Taxpayers can use their Aadhaar number to generate a one-time password (OTP) sent to their registered mobile number. Entering this OTP on the income tax portal instantly verifies the return.

 

Electronic verification code (EVC): You can generate an Electronic Verification Code (EVC) through your pre-validated bank account or demat account. The EVC will be sent to the registered mobile number and email address associated with that account, which you can then use to e-verify your return.

 

Net banking: For those who prefer online banking, this method allows verification through the taxpayer's bank account. Most major banks in India offer this service, enabling users to log in to their net banking account and verify their ITR with a few clicks.

 

Digital signature certificate (DSC): This method is particularly useful for businesses and individuals required to get their accounts audited. A DSC ensures a higher level of security and is mandatory for certain categories of taxpayers.

 

EVC through ATM (offline method): For this ensure PAN is linked with AadhaarPre-validated and EVC-enabled bank / demat account.

 

Physical verification: For those not comfortable with digital methods, the traditional route of sending a signed physical copy of ITR-V (acknowledgment) to the Centralised Processing Center (CPC) in Bengaluru remains available. However, this process can take up to 30 days for confirmation.

 

Prerequisites for availing of this service:

 

Registered user on the e-Filing portal with valid user ID and password

 

Acknowledgement Number (to e-Verify ITR without logging into the e-Filing portal)

 

You have filed a return or an ERI has filed the return on your behalf (to e-Verify ITR)

 

“A fee of Rs 5,000 (Rs 1,000 where the total income does not exceed INR 5 lakhs) is levied for default in furnishing the return of income. Wilful failure to furnish income tax return also results in prosecution ranging from 3 months to 7 years along with a fine,” said Kumarmanglam Vijay, Partner, Head of Practice, Direct Tax at JSA Advocates and Solicitors.