Failed to verify your e-returns in the past? You can do so by September 30

The Central Board of Direct Taxes (CBDT) recently extended a one-time relaxation for tax-payers who have not managed to verify their electronically filed income tax returns (ITR) for assessment years 2015-16 to 2019-20. Usually, they are supposed to complete the verification within 120 days of having filed the return online. The income tax (I-T) department has acknowledged that “a large number” of e-filed returns remained pending for processing for want of receipt of a valid ITR-V (verification) form. Now, such individuals can complete the process of verifying their e-returns by September 30, 2020.

Meeting the new deadline

Every year, return-filers are required to send this signed form by post – and not via courier – to the department’s centralised processing centre (CPC), Bengaluru, after filing their returns online. Alternatively, and preferably, they can also complete the verification process online through electronic verification code (EVC) or one-time password (OTP) modes. You can do so by using Aadhaar-based OTP, through your internet banking account, and generating an EVC through bank accounts, demat accounts or bank ATMs (see graphic).

You will have to follow a similar process after this relaxation too. If you intend to submit your signed ITR-V physically after this one-time relaxation, you will have to do so through speed post.  The returns will be processed by December 31, 2020.

“The department has given this one-time relaxation after taking note of such returns being declared ‘non-est.’ That is, the e-returns will be treated as ‘not filed’. Hence, this measure will bring relief to a lot of tax-payers who were facing this issue as they had not closed the loop by sending ITR-V to CPC or completing the process online,” says Amit Maheshwari, Tax Partner, AKM Global. Considering the fact that the returns were filed and taxes paid, this should provide a big relief to tax payers, he added.

However, it is not a blanket relaxation for all tax-payers. The I-T department has made it clear that it will not be applicable in cases where it has already initiated action in the matter. “This relaxation shall not apply in those cases, where, during the intervening period, the I-T department has already taken recourse to any other measure as specified in the (Income Tax) Act for ensuring filing of tax return by the taxpayer concerned after declaring the return as non-est,” the CBDT said.