Good News Taxpayers! Relaxations in Income Tax Returns Filing; Check New Rule for Verification of Old ITRs

The income tax department has given a one-time relaxation to taxpayers who have not yet verified their e-filed tax returns. So, if you have not yet verified your income tax returns (ITR) for assessment years 2015-16 to 2019-20, then you still have time till 30th September 2020. Once filed, it has to be verified by the taxpayer to complete the ITR filing process.

However, if there is non-filing of ITR-V form within the prescribed time period then your ITR can be declared as 'non-est'. According to the income tax department, a large number of electronically filed ITRs still remain pending with the I-T department for want of receipt of a valid ITR-V Form at CPC, Bengaluru from the taxpayers concerned.

Important things to know about old ITRs verification

• It is to be noted that the relaxation is a one-time measure which is applicable for the last five assessments years- 2015-16, 2016-17, 2017-18, 2018-19 and 2019-20 only.

• But, the relaxation will not apply in the cases, where the income tax department has already taken recourse to other measures for ensuring filing of tax return by the taxpayer concerned after declaring the return as Non-est.

• A taxpayer who is electronically filing income tax returns (ITR) without digital signature must verify it by using either Aadhaar one-time password (OTP), or logging into e-filing account with net banking, or by Electronic Verification Code (EVC) or through sending a duly signed physical copy of ITR-V through post to CPC Bengaluru within 120 days of uploading the ITR.

Due to non-completion of verification process, in many cases, ITRs filed by individuals became invalid Consequently tax refunds, if any claimed in those ITRs also got stuck. But from this order, the government has not only relaxed the timeline to allow taxpayers for verifying their past years' invalid ITRs by 30th September. They also allowed processing of these past ITRs by 31 December 2020," said Shailesh Kumar, Partner, Nangia & Co LLP.

As per ClearTax CEO Archit Gupta, taxpayers who could not verify their returns timely now have a sufficient time to do so. "They shall use this opportunity to make sure all their past returns are duly verified, so that they can be processed. However, if such compliance is not completed by duly time (30th Sept), then a notice may be sent to taxpayers for non-filing.