Filing your Income Tax Return (ITR) is a crucial annual task that requires meticulous planning and attention to detail. For the Assessment Year (AY) 2024-25, the deadline to file your ITR was July 31, 2024. However, simply filing the return is not enough to fulfill your tax obligations. The process extends beyond submission, requiring verification to complete the filing procedure and ensure acceptance by the Income Tax Department.
The Importance of Verifying Your ITR
Verification is a pivotal step in the ITR process. Without it, your filing remains incomplete, potentially leading to penalties and delayed refunds. The Indian government has introduced several methods to simplify and expedite the ITR verification process, aiming to enhance efficiency and accuracy in tax filings.
According to the Press Information Bureau, over 6.21 crore ITRs have been e-verified as of July 31, 2024. Out of these, more than 5.81 crore (93.56%) were verified through Aadhaar-based OTPs. Furthermore, 43.34% of the e-verified ITRs for AY 2024-25 have already been processed. Taxpayers who have not yet verified their ITRs are urged to do so within 30 days of filing to avoid penalties.
The 30-Day Deadline for Verification
The Income Tax Department has set a 30-day deadline for e-verifying your ITR or submitting a hard copy of the ITR-V after filing. This rule has been in effect since August 1, 2022, replacing the previous 129-day time limit.
For ITRs filed electronically before August 1, 2022, the 120-day time limit still applies. If the ITR data is transmitted electronically and the ITR-V is submitted within 30 days, the date of electronic transmission is considered the filing date.
Consequences of Missing the 30-Day Deadline
If you miss the 30-day verification deadline, the date of e-verification or ITR-V submission will be treated as the new filing date. This delay triggers all the consequences of late filing under the Income Tax Act, including penalties. Specifically, if you filed your ITR by July 31, 2024, but did not verify it within 30 days, you could face a penalty of ₹5,000 under Section 234F. Additionally, any potential refund will be withheld, and the ITR will be considered unfiled until verification is complete.
Condonation Request for Delayed Verification
If you fail to verify your ITR within the stipulated time, you can request a condonation of delay by providing a valid reason. This request must be submitted to the Income Tax Authority, which will review it and, if accepted, allow you to complete the e-verification process. Your return will only be deemed valid after the competent authority approves your condonation request.
Methods to E-Verify Your ITR
The government has introduced several convenient methods to e-verify your ITR:
- Aadhaar OTP: This method uses a One-Time Password (OTP) sent to your registered mobile number. By entering this OTP on the income tax portal, you can promptly complete the verification of your return.
- Electronic Verification Code (EVC): An EVC can be generated through a pre-validated bank account or DEMAT account. The EVC is sent to your registered mobile number and email address, allowing you to e-verify your return easily.
- Net Banking: Many banks in India offer net banking services, enabling users to log in and verify their ITR through their bank accounts. This method is convenient and quick, especially for those who frequently conduct online transactions.
- Digital Signature Certificate (DSC): A DSC is mandatory for certain taxpayer categories, particularly businesses and individuals with audited accounts. This method ensures a secure and trustworthy verification process, providing additional security for your financial transactions.
Final Thoughts
Completing your ITR filing process is not just about submitting your returns; it also involves timely verification. Failure to verify within the specified period can lead to penalties and delays in processing your return. By using one of the available e-verification methods, you can ensure that your ITR is accepted by the Income Tax Department, avoiding any complications.
For those who missed the deadline or need assistance with the process, seeking professional advice or contacting the Income Tax Department can provide the necessary guidance to rectify the situation.
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