ITR Verified: How to Ensure Your Income Tax Return Counts

In India, once you’ve submitted your Income Tax Return (ITR), the journey isn’t over until you verify it. This crucial step, which must be completed within 30 days of filing, is paramount. Missing this deadline renders your ITR invalid, potentially leading to penalties and delays in your refund. To simplify this, the Income Tax Department offers seven distinct methods for verification.

Thank you for reading this post, don't forget to subscribe!

The Critical Importance of ITR Verification

An unverified ITR is, simply put, an unfixed ITR. This oversight can trigger several undesirable outcomes:

• Financial Penalties: You could face late fees under Section 234F, with a penalty of ₹5,000 (or ₹1,000 for incomes below ₹5 lakh).
• Interest on Unpaid Taxes: A monthly interest of 1% can be levied on any outstanding tax amount.
• Refund Roadblocks: If you’re expecting a refund, it won’t be processed until your ITR is verified.
• Potential Legal Issues: Persistent non-verification can lead to further scrutiny and complications with tax authorities.

Seven Convenient Ways to Verify Your ITR

The Income Tax Department has streamlined the verification process with these seven options:

1. Aadhaar OTP: The most common and immediate method. An OTP is sent to your Aadhaar-linked mobile number, which you then enter on the e-filing portal for instant verification.
2. EVC via Bank Account: Generate an Electronic Verification Code (EVC) through your pre-validated bank account. Many major banks facilitate this via their internet banking platforms, making it a handy option for online banking users.
3. EVC via Demat Account: For active investors, an EVC can be generated through your Demat account. This is particularly useful for stock market participants with integrated Demat details on the e-filing portal.
4. EVC via ATM: Some banks allow EVC generation directly from their ATMs. The EVC is sent to your registered mobile number. It’s wise to confirm with your bank if this service is available.
5. Net Banking: This method offers a seamless experience, allowing direct access to the e-filing site through your net banking portal, eliminating the need for separate codes.
6. Digital Signature Certificate (DSC): This highly secure method is often mandatory for specific taxpayers, such as companies and individuals with income exceeding ₹50 lakh. It requires the purchase and installation of a valid DSC token.
7. Physical Verification (ITR-V): For those who prefer traditional methods, you can mail a signed ITR-V acknowledgment form to the Centralised Processing Centre (CPC) in Bengaluru. Ensure it reaches within the 30-day window. This process typically takes 2-3 weeks, and its status can be tracked online.

Consequences of Missing the Deadline

If your ITR remains unverified after 30 days, it’s considered invalid. While you can file a “Condonation of Delay” request explaining the reason for the lapse, its acceptance rests entirely with the tax department’s discretion. Even if approved, the verification date becomes the deemed filing date, which could still impact adherence to original filing deadlines.

Confirming Your ITR Verification

Once your ITR is successfully verified, the e-filing system will display a confirmation message, complete with a Transaction ID. You will also receive a confirmation email on your registered email address. Retaining this proof of transaction is vital for future reference.

By proactively choosing one of these verification methods, taxpayers can ensure their ITR is complete, avoid unnecessary stress and penalties, and facilitate the smooth processing of their tax returns and timely refunds.