News

Published: August 1, 2023
Updated: August 1, 2023

Ensure Timely ITR Verification to Avoid Penalties - New Rules Effective from Aug 1

The Income Tax Department has implemented crucial changes in the Income Tax Return (ITR) verification process, reducing the time limit for verification and imposing penalties for non-compliance. Stay informed about the new rules to secure your tax filing and avoid unnecessary hassles.

Hike in Windfall Tax and Revised ITR Verification Time Frame:

Effective from August 1, the Central Board of Direct Taxes (CBDT) has increased the windfall tax on petroleum crude to INR 4,250 per tonne, aiming to regulate profits and maintain equitable pricing. Moreover, the ITR verification time limit has been reduced to 30 days from the date of e-filing, applicable for returns filed online after August 1, 2022.

Importance of ITR Verification:

Remember, your tax return filing process is incomplete without verifying it. An unverified ITR is considered invalid and may lead to late fees and penalties as per Section 234F of the Income Tax Act, 1961. Ensure timely verification to avoid unnecessary financial implications.

Ways to e-Verify your ITR:

E-verification offers the most convenient and instant method to verify your ITR. You can choose from various options, such as Aadhaar OTP, EVC through a pre-validated bank account, EVC through a pre-validated demat account, or sending a duly signed ITR-V via speed post to CPC Bengaluru.

New Timeframes for ITR Verification:

It is essential to adhere to the updated ITR verification timeframes:

● For returns filed on or before July 31, 2023, the verification must be completed within 120 days from the date of e-filing.

● For returns filed on or after August 1, 2023, the verification deadline is reduced to 30 days from the date of e-filing.

Consequences of Non-Verification:

Failure to verify your ITR within the stipulated time frame may render your return as invalid, inviting late fees and penalties. The Income Tax Department may notify you through emails if the ITR verification remains pending.

Completing ITR Verification - A Must:

To complete your return filing process, ITR verification is of utmost importance. Without verification, your ITR will not be considered valid, impacting your tax compliance and financial standing.

Various e-Verification Options:

Explore the array of e-verification methods, including Aadhaar OTP, EVC through pre- validated accounts, and Net Banking. Ensure your PAN is linked with Aadhaar and that you have a valid and active DSC for the DSC method.

Know the Verification Status:

Once you e-verify your ITR, a success message with a transaction ID will be displayed, and an email will be sent to your registered email ID. Stay updated with the verification status for peace of mind.

As responsible taxpayers, timely ITR verification is our duty. The new rules emphasize the importance of adhering to the revised time frames to avoid penalties and ensure a smooth and compliant tax filing experience. Choose the most suitable e-verification method and complete the process promptly to stay on the right side of tax regulations.