I-T Dept offers one-time relaxation for verification of last 5 years ‘e-filed’ returns

The Central Board of Direct Taxes (CBDT), has provided a one-time relaxation for verification of e-filed income tax returns for Assessment Year (AY) 2015-16 to 2019-20, which are pending due to non-filing of the ITR-V form.

Once, the return is filed electronically, it needs to be verified using one of six means within 120 days of uploading the Income Tax Return. Verification could be done through Aadhaar based OTP (One Time Password), by logging into e-filing account through net banking, by getting Electronic Verification Code (EVC) through bank account number/demat account number/bank ATM or by sending a duly signed copy of IR-V through post to the Central Processing Centre (CPC), Bengaluru.

Acknowledging that a large number of electronically filed ITRs still remain pending with the IT Department for want of receipt of a valid ITR-V Form at CPC, Bengaluru from the taxpayers concerned, and also taking note of legal consequences of such returns being declared as ‘non-est’, the CBDT has permitted verification of such returns either by sending a physical copy of the ITR-V to CPC, Bengaluru or through EVC/OTP modes, latest by September 30.

These returns will be processed by December 31 and intimation to the investors will be sent. Also, if refund is there, it will be paid with interest, as applicable.

“This relaxation shall not apply in those cases, where during the intervening period, Income-tax Department has already taken recourse to any other measure as specified in the Act for ensuring filing of tax return by the taxpayer concerned after declaring the return as Non-est,” CBDT clarified.

Shailesh Kumar, Partner at Nangia & Co LLP said that in many cases, ITRs filed by individuals became invalid due to non-completion of verification process. Consequently, tax refunds, if any claimed in those ITRs also got stuck. By this order, the government not only relaxes the timeline allowing taxpayers to verify their past years’ invalid ITRs by September 30 but also allows processing of such past ITRs by December 31, 2020.

“This order can benefit a large number of taxpayers, mostly being individual taxpayers, who could not verify their past ITRs inadvertently due to lack of knowledge of prescribed procedure or otherwise. This order provides a good opportunity to them for regularising their past ITRs and not only solve the issue of past non-compliance but also receive past pending refunds stuck due to this procedural lapse,” he said.

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