E-verification: Meaning, Deadline and Consequences of Non-verification

What is Verification of ITR?

Verification of ITR means to authenticate the ITR. In simple words, the Income-tax department asks you to verify the ITR so that it is confirmed that the ITR is filed by you only. Verification of ITR can be done online and offline. Online verification is also known as e-verification and can be done through various methods. In case of Offline verification, ITR V is to be sent by post to CPC, Bengaluru. To know more about ITR V, click here.

What is the Time limit to Verify your ITR?

The time limit for verification is 30 days from the date of filing the return. Let's say you have filed the ITR on the due date i.e. 31st July then the last date to verify your ITR would be 31st August. Earlier this time limit was 120 days. However, as per the new amendment by CBDT, the ITR verification timeline has now been reduced to 30 days.

What if Verification is not done?

If the ITR is not timely verified then such return becomes invalid be it original or revised. So, all the hard work done to file your return in time goes in vain. It is considered as if you never filed the return for that year. Therefore, along with the timely filing of ITR timely verification is also necessary.

However, in some genuine cases where you could not verify your ITR on time, a condonation delay request can be filed on the income tax e-filing website. This is to avoid genuine hardship faced by the assessee.

How does the Invalid ITR look like?

Recently, the income tax department has launched a watermark facility on the invalid ITR V. Earlier, there was no such watermark. Now, the Invalid ITR V will always have a watermark stating Invalid on it.

Email from the Income Tax Department

Attention! Your ITR Verification is Pending

If you don’t verify your ITR within 30 days of e-filing, it is considered invalid, and may be liable to pay a late fee.

You can verify now with EVC through a Bank Account, Aadhaar OTP, EVC through a Demat account, and send a signed ITR-V to CPC Bengaluru through speed post.

*A late fee of Rs.1,000 or Rs.5,000 will be applicable as per section 234F of the Income Tax Act.

What are the Repercussions of Invalid ITR?

You may face the effects of an Invalid ITR at various places. Some of them are as follows :

• Claim refunds.
• Carry forward your losses.
• Apply for Loans.
• Obtain Visa.

Further, the point to be noted here is that even if the ITR is filed before the due date but not e-verified within the time limit then the ITR shall become invalid. Consequently, fees u/s 234F shall be levied for that ITR. So, be aware and don't fall prey to Sec 234F even after filing your ITR on time.

Consequences for Late Verification of ITR for FY.2022-23

Here are the consequences if the taxpayers verify the return of FY 2023-24 beyond the time limit:-

Where to Send ITR-V for Verification?

Some people complete ITR verification by sending it to the Income Tax Department via Speed Post. The ITR-V must be signed in the signed form and submitted in the prescribed manner through speed post at the address “Central Processing Centre, Income Tax Department, Bengaluru, 560500, Karnataka.”

In such a case, the date of dispatch of the speed post is used for determining the 30-day timeline.

These rules are only applicable to the ITRs filed through electronic mode.

Conclusion

Verifying your return is equally important as filing your return. If the time limit to verify your ITR expires then the ITR filed will become Invalid and it will mean as if you have never filed it. So, you need to make sure you e-verify your ITR as soon as possible after filing your return. If you find filing ITR or e-verifying complicated, you can seek assistance from our expert CAs, who can help make the entire filing and e-verification process smoother. Book an eCA Now!