Don't forget to verify your income tax return in August: Here's the process

An ITR return needs to be verified within 120 days of filing of tax return.

Now that you have filed your income tax return, remember to verify it because your return filing process is not complete unless you do so. The CBDT has reduced the time limit of ITR verification to 30 days (from 120 days) from the date of return submission. The new rule is applicable for the returns filed online on or after 1st August 2022. 

E-verification is the most convenient and instant method for verifying your ITR. However, if you prefer not to e-verify, you have the option to verify it by sending a physical copy of the ITR-V. 

Taxpayers who filed returns by July 31, 2023 but forget to verify their tax returns, will get the following email from the tax department, as per ClearTax.

 

Caution! Your ITR verification is Pending!

If your ITR is not verified within 30 days of e-filing, it will be considered invalid, and may be liable to pay a Late Fee.

You can verify with-

Aadhaar OTP | EVC through bank account | EVC through Demat account | Sending duly signed ITR-V through speed post to CPC Bengaluru

* Late fee of Rs 1000 or Rs 5000 will be applicable as per Section 234F of the Income Tax Act, 1961. 

ClearTax explains the compliance for pending ITR verification

 Here’s what you should do –

Verify your tax return to complete your return filing process.

Verification of tax returns for the assessment year 2022-23 

Within 120 days of the date of e-filing– for the returns filed on or before 31st July 2023.

Within 30 days of the date of e-filing– for the returns filed on or after 1 August 2023. 

You may e-verify using Aadhaar OTP or EVC or send your ITR-V (steps here).

 Why do I need to e-Verify?

You need to verify your Income Tax Returns to complete the return filing process. Without verification within the stipulated time, an ITR is treated as invalid. 

 What are the different ways in which I can e-Verify my returns?

You can e-Verify your returns online using:

OTP on mobile number registered with Aadhaar: For  this PAN should be linked with Aadhaar
 

EVC generated through your pre-validated bank account, or EVC generated through your pre-validated demat account, or

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

Net Banking: For this  ensure PAN is linked with your bank account and ensure Net Banking should be enabled for the preferred bank account
 

Digital Signature Certificate (DSC): For this you should have 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 Certifying Authority provider  andThe DSC USB token is a Class 2 or Class 3 certificate.

Prerequisites for availing 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)

I have filed my return more than 120 days ago. Can I still verify my returns online?

Yes. You need to submit request for condonation of delay (refer to the Service Request user manual) by providing an appropriate reason for the delay. But the return will be taken as verified only after approval of the condonation request by the Income Tax Department.

How will I know that my e-Verification is complete?

In case you are e-Verifying your return:

A success message will be displayed along with a Transaction ID

An email will be sent to your email ID registered with the e-Filing portal
 

In case you are an Authorized Signatory / Representative Assessee:

A success message will be displayed along with a Transaction ID

After successful verification, an email confirmation will be sent to the primary email ID of both Authorized Signatory's / Representative Assessee's and your email ID registered with e-Filing portal

My registered mobile number is not updated with Aadhaar, can I still e-Verify my return using Aadhaar OTP?

No. You need to update your mobile number with Aadhaar to e-Verify your return using Aadhaar OTP.

 My demat account / bank account is inactive, can I e-Verify my return with this account?

No. You need to have an active demat account / bank account which needs to be pre-validated and EVC-enabled on e-Filing portal to e-Verify your return using your demat account / bank account.

 Will delay in e-Verification attract any penalty?

If you do not verify in time, your return is treated as not filed and it will attract all the consequences of not filing ITR under the Income Tax Act, 1961. However, you may request condonation of delay in verification by giving appropriate reason. Only after submission of such a request, you will be able to e-Verify your return. However, the return will be treated valid only once the condonation request has been approved by the competent Income Tax Authority.

 What to do in case ITR-V is rejected?

You can see the reason for rejection on your e-Filing Dashboard. You may send another ITR-V or choose to e-Verify the ITR online.