Filing your income tax return is a crucial financial responsibility, but the process doesn’t conclude with the submission of your Income Tax Return (ITR) form. One of the crucial steps that often is overlooked is ITR verification. In this blog post, we’ll dive into the significance of Income Tax Return Verification, the methods available, and why it’s a critical aspect of your financial planning.
On this page
What is Income Tax Return Verification?
Form ITR-V or Income Tax Return Verification Form, a concise one page document issued when an individual files their ITR online without utilizing a digital signature. The income tax department dispatches the ITR-V to taxpayers via email, and taxpayers also have the option to download it from the income tax e-filing website.
Validating the ITR is a crucial step in completing the income tax filing process. This can be accomplished either manually by mailing a signed copy of the ITR-V acknowledgment in ‘blue ink’ to the Income Tax Department Centralized Processing Centre (CPC), Bangalore, or through the online verification method.
When filing your ITR, the tax department initially receives the return but delays processing until it’s verified. The verification process must be completed within 30 days of submitting the ITR, a change from the previous 120 day limit, effective for returns from August 1, 2022. If you filed your ITR before July 31, 2022, the 120-day limit still applies for e-verification.
What is the importance of Income Tax Return Verification?
Failure to verify your return within the specified time will result in it being considered as not filed, subjecting you to the consequences outlined in the Income Tax Act of 1961 for non-filing ITR.
- Legally Binding:
- Verifying your income tax return is not just a formality; it is a legal requirement. Without verification, your ITR submission is considered incomplete.
- Confirmation of Accuracy:
- Verification ensures that the information provided in your ITR is accurate. It’s your way of confirming that the details regarding your income, deductions, and exemptions are correct.
- Initiating Processing:
- The processing of your tax return begins only after successful verification. Until then, your filing is considered provisional. Timely verification is crucial to initiate the refund process or address any discrepancies.
What are the different methods of Income Tax Return Verification?
The Income Tax Department has streamlined the e-verification process, eliminating the need to log in to the portal. Unlike the previous method, which required taxpayers to log in and verify, the new approach is quicker and more efficient.
- Electronic Verification Code (EVC):
- EVC is one of the simplest methods. It involves generating a code through methods like Aadhar OTP, net banking, or bank ATM. Once generated, enter the code on the income tax e-filing portal to complete the verification process.
- Digital Signature Certificate (DSC):
- For a more secure verification process, taxpayers can opt for a Digital Signature Certificate. This method ensures the authenticity of the return by providing a digital signature that is linked to your PAN.
- Sending a Physical Copy (Paper Verification):
- If electronic methods aren’t feasible, a signed physical copy of ITR-V (Acknowledgment) can be sent to the CPC, Bengaluru, via ordinary post within 120 days of e-filing. This method, however, is considered a bit old-fashioned and can result in delays.
Why is Income Tax Return Verification crucial?
- Avoiding Penalties:
- Non-verification can lead to penalties. Ensure timely verification to steer clear of legal repercussions and additional fines.
- Ensuring Refund Processing:
- If you’re expecting a tax refund, verification is a prerequisite for processing. Timely verification expedites the refund into your bank account.
- Building Financial Credibility:
- Regular and accurate filing, including verification, contributes to your financial credibility. It reflects your responsible approach to tax compliance.
What are the steps for verifying without logging to filing portal?
- Step 1: Click on “e-verify Return” on the home page of the Income Tax portal.
- Step 2: On the e-verify Return page, input the Permanent Account Number (PAN), select the Assessment Year, enter the Acknowledgment Number of the filed ITR, and provide the Mobile Number and click continue.
- Step 3: Enter the 6-digit Mobile OTP received on the registered mobile and click ‘Submit.’
- For verification after 30 days of filing, follow Step 4 and 5. For verification within 30 days, proceed to Step 6.
- Step 4: If verifying after 30 days, click ‘Ok.’
- Step 5: If a condonation delay request is needed, select the reason from the dropdown and click Continue.
- Step 6: Choose the e-Verification mode. Options include Aadhaar OTP, existing Aadhaar OTP, existing EVC, or EVC through bank/Demat account. Follow the specific steps for your chosen method.
After verification, a success message will display, and a confirmation will be sent to your registered email and mobile number
How to verify ITR online after using the Income Tax Portal?
Method 1: E-Verify Return with Aadhaar OTP
- Step 1: Access the e-filing website Navigate to the ‘e-file’ tab on the dashboard, select ‘Income Tax Returns,’ and choose ‘e-verify return.’
- Step 2: Opt for ‘I would like to e-verify using OTP on the mobile number registered with Aadhaar.’ Ensure your mobile number is linked to Aadhaar and PAN-Aadhaar is connected.
- Step 3: Agree to validate Aadhaar details and generate Aadhar OTP (valid for 15 minutes).
- Step 4: Submit the OTP for verification. A success message will confirm the successful verification. An acknowledgment will be available for download and sent to your email.
Method 2: E-Verify Return with Digital Signature Certificate
- Step 1: After filing ITR, select “I would like to verify using Digital Signature Certificate.”
- Step 2: Verify your identity by downloading the emsigner utility.
- Step 3: Confirm the installation of emsigner utility.
- Step 4: Select the provider, certificate, and provider password, then click on “Sign.” A successful message with the transaction ID will be displayed and sent via email.
Conclusion
Income Tax Return Verification is a key element of responsible financial management. Whether through the ease of EVC, the security of a Digital Signature Certificate, or the traditional paper verification, choosing the right method ensures the smooth processing of your tax return. Stay compliant, verify your return, and embrace financial peace of mind.
To make sure your income tax return is accurate, contact 24efiling for verification and assistance. Also, remember to submit your ITR on time to avoid any issues.
FAQs
-
1. What is Income Tax Return Verification?
When a taxpayer files an ITR, the income tax department receives the tax return, but its processing does not start. The processing will start only after the return gets verified. This sequence is termed Income Tax Return Verification.
-
2. Why is income tax return verification necessary?
Verification is crucial to authenticate the accuracy of the details provided in the tax return, ensuring compliance with tax regulations and preventing fraudulent filings.
-
3. What are the methods available for income tax return verification?
Common verification methods include an Electronic Verification Code through Aadhar, Net Banking, Demat Account, Bank ATM, or sending a physical signed copy of the ITR-V to the CPC.
-
4. How long do I have to verify my income tax return after filing?
The verification should be completed within 120 days of filing your tax return to avoid any potential complications. Failure to verify within this timeframe may result in the return being considered invalid.
-
5. Can someone else verify my income tax return on my behalf?
No, Verification typically needs to be done by the taxpayer. However, if you are unable to verify, you can authorize someone else using a Power of Attorney.
-
6. What happens if I forget to verify my income tax return?
If you forget to verify your return within the stipulated time, your filing will be considered incomplete. The Income Tax Department may not process your return, and you may need to refile.
-
7. Can I change my verification method after filing my return?
Once a verification method is chosen and the return is filed, it cannot be changed. It is essential to carefully select the appropriate method during the filing process.
-
8. Can I e-verify my income tax return if my mobile number is not linked to Aadhar?
Yes, you can still e-verify using alternative methods such as Net Banking or Demat Account even if your mobile number is not linked with Aadhar.
