ITR Verification time limit reduced from 120 days to 30 days

The time limit for verification of electronically filed Income Tax returns is reduced from 120 days to 30 days for returns filed on or after 1st August 2022. . The Central Board of Direct Taxes (CBDT) has announced this via a notification dated 29th July 2022.

The Income Tax Department (ITD) processes your returns only if it is verified electronically or by sending ITR-V to ITD. 

The time limit for the taxpayers who have filed their Income Tax returns before 1st August 2022 remains 120 days from the date of submission of ITR.  

Let’s simplify it-

As per the notification, if the ITR filed is verified (electronically or by sending ITR-V to ITD) before the time limit of 30 days, then the date on which the return was filed will be considered as the date of furnishing ITR. 

However, if the ITR filed is verified (electronically or by sending ITR-V to ITD) beyond 30 days, then the date of ITR verification will be treated as the date of furnishing the Income Tax return. The taxpayer will have to bear all the consequences provided in the Income Tax Act for late filing the return.

Consequences for ITR verification done beyond the time limit are simplified in the table below for taxpayers filing the ITR for FY 2021-22.

Some taxpayers choose to verify the returns offline by sending the ITR-V via speed post to the Income Tax department. The notification clarified that the taxpayers should submit the duly verified ITR-V in the prescribed form and in the prescribed manner by speed post only to the below address- 

Centralised Processing Centre, 

Income Tax Department, 

Bengaluru – 560500, Karnataka. 

In such cases, the date of dispatch of speed post of duly verified ITR-V will be considered for determining the 30 days period, from the date of filing ITR electronically. 

It is to be noted that these rules apply only to the Income Tax returns filed electronically.

You can e-verify your Income Tax return online in a few minutes on the Income Tax e-filing portal. If your Aadhaar is linked to your PAN, you can e-verify by generating Aadhar OTP and verify your return in just two steps. You can avoid the hassles of verifying your ITR physically by speed posting it to the Income Tax department. There are various ways in which you can verify your ITR online. You can select any of the modes of e-verification as mentioned below:

• By generating Aadhaar OTP
• Using existing Aadhaar OTP
• Generating Electronic Verification Code (EVC)
  • through a bank account
  • through the Demat account
  • through Net-banking
• Using existing EVC
• Using Digital Signature Certificate (DSC)

You can refer to the guide How to e-Verify Your Income Tax Return to know the steps for e-verification.

For any clarifications/feedback on the topic, please contact the writer at namita.shah@clear.in