Submitting your Income Tax Return (ITR) is merely the initial step in fulfilling your tax responsibilities. According to the Income Tax Department, the filing remains incomplete until the return is verified within a 30-day time frame.
This requirement, which was enacted on 1 August 2022, significantly shortens the previous 120-day period and underscores the necessity for swift action to avoid potential penalties and blocked refunds.
Why ITR verification matters
If your ITR is left unverified, the tax department treats it as if it was never filed. This oversight may result in undesirable consequences, including late fees under Section 234F amounting to ₹5,000 for delays, 1% monthly interest on unpaid taxes, and potential legal issues if the delays persist. Such financial implications highlight the critical importance of ITR verification. Additionally, refunds may be significantly delayed, causing inconvenience and possible cash flow problems for taxpayers.
How to verify your ITR: 7 options
To facilitate the verification process, the Income Tax Department provides several options. One of the most straightforward methods is using an Aadhaar OTP, where a One-Time Password is sent to the Aadhaar-linked mobile number. This method allows immediate verification on the e-filing portal.
1. Aadhaar OTP
An OTP (One-Time Password) is sent to the mobile number linked with your Aadhaar. Enter this OTP on the e-filing portal to instantly verify your ITR. This method is considered one of the most convenient for taxpayers who have their Aadhaar details updated and linked to their e-filing account.
2. EVC via Bank account
Another option is generating an Electronic Verification Code (EVC) through a pre-validated bank account. Many major banks offer this service through their internet banking platforms. This method is convenient for those who frequently use online banking services and is supported by numerous major banks, ensuring accessibility to a wide range of taxpayers.
3. EVC via Demat Account
For those with a Demat account, an EVC can be generated as well. This option is ideal for active investors with integrated Demat details in the portal and is particularly beneficial for stock market investors who regularly manage their portfolios online. This integration allows for seamless account management and verification.
4. EVC via ATM
Some banks also permit the generation of EVC via ATMs. The EVC is sent to the registered mobile number, which can be used for verification. However, not all banks support this feature, so it’s advisable to check with your bank beforehand. This option provides an additional layer of convenience for those who prefer in-person banking services.
5. Net Banking
Net banking offers a seamless verification method by allowing direct access to the e-filing site without the need for separate codes. This method is favoured by many due to its simplicity and ease of use, and it is particularly useful for those who manage their financial affairs primarily through digital means.
6. Digital Signature Certificate (DSC)
For certain taxpayers, such as companies and individuals with incomes exceeding ₹50 lakh, a Digital Signature Certificate (DSC) is required. It is a secure method but necessitates purchasing and installing a valid DSC token. This option is mandatory for specific categories of taxpayers and ensures an additional layer of security in the verification process.
7. Physical Verification (ITR-V)
Those preferring non-digital options can opt for physical verification by sending a signed ITR-V acknowledgment form to the Centralised Processing Centre in Bengaluru. The form should reach CPC within 30 days. Processing for physical verification typically takes 2-3 weeks, and taxpayers can track the status under ‘View Returns/Forms’ on the e-filing portal. This method caters to those less comfortable with digital transactions and offers a reliable alternative.
What happens if you miss the deadline?
Failure to verify within 30 days results in the ITR being invalid. A taxpayer can file a Condonation of Delay request, explaining the reason for the missed deadline. The tax department may or may not accept the request-it’s entirely at their discretion. Missing the verification deadline can lead to additional stress and uncertainty, underlining the need for timely action.
How to know your ITR is verified
Once your ITR is successfully verified, the system displays a confirmation message along with a Transaction ID. You’ll also receive an email on your registered email ID. Keeping this transaction proof safe is important for future reference. This confirmation signifies that your tax return is being processed smoothly, ensuring peace of mind for taxpayers.
With the stricter 30-day verification rule firmly in place, taxpayers should ensure not to leave their ITR half-done. By choosing any of these seven methods to complete the filing process, taxpayers can avoid penalties, delays, and unnecessary stress. Verifying your ITR immediately ensures smooth tax processing and faster refunds, which is essential for maintaining financial health and preventing future complications.