Relaxation For Verification Of Income Tax Returns

Going through the records, the Central Board of Direct Taxes recently noticed that a vast number of

income tax returns are pending only because of the non-submission of duly signed ITR-V. To overcome the same, the Government has announced a one-time relaxation for verification of the income tax return for the last five years, which are pending only for want of ITR-V. The current article briefly covers the original provisions attached to the verification of income tax returns and the Government’s one-time relaxation.

Provisions relating to verification of income tax returns

The income tax return filed online (without using Digital Signature Certificate) must be verified as per the provisions. Any of the following ways can be adopted for verification of the return-

E-verification using Aadhaar OTP.
E-verification through Bank Account Number.
E-verification through net banking.
E-verification through Demat Account Number.
E-verification through bank ATM.
Sending duly signed copy of ITR-V via post to CPC, Bengaluru.

Noticeably, the first five options/ ways, narrated above, are

electronic verification, and the last i.e., the sixth option, is offline verification. In case the taxpayer has selected the sixth option, the taxpayer is required to send a copy of ITR-V to the Income Tax Department within 120 days of uploading/ filing the return at the below address- CPC, Post Box No. 1, Electronic City Post Office, Bengaluru – 560 100. If the taxpayer fails to duly submit a copy of ITR-V, the e-return filed shall be considered invalid. It is worth noting that verification of electronically filed returns is important since the taxpayer doesn’t sign the return at the time of filing. Further, in case the return is filed using the ‘Digital Signature Certificate’, the verification of the same is not required.

One-time relaxation

The Central Board of Direct Taxes, vide circular no. 13/2020 dated 13

th July 2020, has come up with one-time relaxation. The purpose, applicability, and non-applicability of one-time relaxation is explained hereunder-

Purpose of one-time relaxation-

Following are the two main purpose of one-time relaxation-

To resolve the grievance of the taxpayers associated with non-submission of ITR-V of the earlier assessment years; and
To regularize the results, which have either become non-est (i.e., invalid) or are pending because of non-receipt of ITR-V.

Applicability of one-time relaxation-

The one-time relaxation is available only if the following two conditions are satisfied-

The returns for the relevant Assessment Year are electronically uploaded within the time limit specified under section 139 of the Income Tax Act; and
ITR-V of the same is pending for submission.

If both the above conditions are satisfied, then, as a measure of relaxation, the taxpayer is permitted to complete the verification of any of the pending returns for the Assessment Year 2015-2016, 2016-2017, 2017-2018, 2018-2019, and 2019-2020 by 30

th September 2020.

Non-applicability of one-time relaxation-

The one-time relaxation shall not be available to the cases, wherein, the income tax department, during the intervening period, has already taken recourse of other possible measures to ensure filing of the taxpayer’s income tax return.

Conclusion

Verification is required for all the income tax returns which are filed electronically without using Digital Signature Certificate. The return shall become invalid if the verification of the same is not complete within a prescribed time limit of 120 days. The Government’s present one-time relaxation is undoubtedly a good opportunity for the non-filers to regularize their pending income tax return and receive the pending income tax refund, if any, stuck up due to non-filing ITR-V. But it is vital for the non-filers to take note that for availing the one-time relaxation, the taxpayer is required to complete the verification i.e., submit the copy of duly signed ITR-V to CPC by 30

th September 2020.

Back to Learn

Frequently Asked Questions

Common questions about Income Tax Return Verification & One Time Relaxation.

ITR-V stands for Income Tax Return Verification. It is an important document that needs to be submitted to the Income Tax Department to complete the verification process for electronically filed income tax returns. Failure to submit ITR-V within the prescribed time limit of 120 days can render the e-filed return invalid.

The one-time relaxation has two main purposes: to resolve the grievances of taxpayers associated with non-submission of ITR-V for earlier assessment years, and to regularize the returns that have become invalid or are pending due to non-receipt of ITR-V.

To be eligible for the one-time relaxation, two conditions must be met: (1) The returns for the relevant assessment years (2015-16 to 2019-20) were electronically uploaded within the time limit specified under section 139 of the Income Tax Act, and (2) ITR-V for the same is pending for submission.

Taxpayers who meet the eligibility conditions can avail the one-time relaxation to complete the verification of their pending returns for the assessment years 2015-16 to 2019-20 by submitting the duly signed ITR-V by September 30, 2020.

Verification of electronically filed income tax returns is essential because the taxpayer does not physically sign the return at the time of filing. The verification process serves as a confirmation and validation of the return by the taxpayer.

Taxpayers can verify their electronically filed income tax returns through various methods, such as e-verification using Aadhaar OTP, e-verification through bank account number or net banking, e-verification through Demat account number or bank ATM, or by sending a duly signed copy of ITR-V via post to CPC, Bengaluru.

No, verification is not required for income tax returns filed using a Digital Signature Certificate (DSC). The DSC serves as a secure electronic signature, eliminating the need for separate verification.

No, the one-time relaxation cannot be availed if the Income Tax Department has already taken recourse to other measures to ensure the filing of the taxpayer's income tax return during the intervening period.

The purpose of sending the ITR-V to CPC (Centralized Processing Center), Bengaluru is to complete the offline verification process for electronically filed income tax returns. CPC, Bengaluru is the designated address for receiving and processing ITR-V forms.

No, the one-time relaxation is applicable only for the assessment years 2015-16, 2016-17, 2017-18, 2018-19, and 2019-20. It does not cover assessment years prior to 2015-16.