Verification can be done either electronically with Net Banking, Aadhaar registered mobile, Digital Signature Certificate, Demat account etc. or manually by sending the signed ITR V to the Central Processing Center (CPC), Bangalore. The time limit for verification is within 30 days. There is an option to file a condonation request if the said 30 day deadline is not met, but the tax authorities have the discretion to waive such delay or not.
Now, to further streamline the process, the tax authorities have introduced a facility wherein the taxpayer can choose to ‘reject’ the ITR before it is verified. Let us analyze it in detail.
What is “Discard ITR” option?
If you have filed your return, whether original, revised, or delayed, which has not yet been verified, you can avail the facility to discard the same and later file a fresh ITR after discarding the unverified. Can file. This can happen if you identify a mistake/error after filing your ITR. Before this facility, the taxpayer had to first verify the uploaded return, then file a revised return incorporating the details of the original return such as acknowledgment number, filing date, etc. and then complete the entire process. The amended return has to be verified. Now, with this facility, new returns can be filed directly without verifying the ITR first.
timeline to Discard IT Returns,
You can choose to reject the ITR filed for FY 2022-23. However, this option will be available only till the specified deadline for filing ITR which is 9 months from the end of the relevant tax year i.e. 31st December. For tax year 2022-23, it is December 31, 2023.
Are there any caution points?
Yes, before choosing this option, keep the following things in mind:
- The option is available only for ‘Unverified’ or ‘Pending for Verification’ ITRs. Before rejecting the ITR, an online undertaking to this effect has to be submitted.
- You can reject ITR multiple times. Once it is rejected, it cannot be reversed and will be considered not filed.
- If you verify your ITR manually and have already sent the signed ITR V to CPC, you should not abandon the ITR, as ITR V is in transit.
- This is not a facility to relieve you from the filing requirement. You will be required to file a fresh return even after relinquishment, as applicable to your case.
- Suppose you filed your original ITR (say on July 20, 2023) and rejected it before it could be verified. You filed a fresh ITR after the due date (e.g. 10th August 2023). In such case the penal fee will be Rs. Rs 5,000/- Along with Rs 1,000, other consequences will also be applicable, such as interest on late filing, ban on carrying forward losses (except house property losses), no option to opt for the new individual tax regime, etc. Where fresh ITR was filed (e.g. 30th July 2023), then no penal fee.
This feature aims to streamline the return filing process and avoid unnecessary amendments. Although it is a simple click facility and user friendly, taxpayers should exercise caution and follow the above points.
(The author is a Partner at Vialto Partners. Manvi Gupta, Director, Vialto Partners also contributed to the article. Views are personal)