Simply Put: e-verification

Balaji and Rohit catch up after a long while. Here’s how their conversation unfolded.

Rohit: I have filed my income tax returns already, now there will be no last-minute rush like last year, I just need to send ITR V to CPC Bengaluru, rest all sorted.

Balaji: That’s great but why are you taking the bother to send a physical copy of ITR V when you can just e-verify your returns?

Rohit: What is e-verification?

Balaji: Verification of return is an essential step to complete the filing of return. If the verification is not done before the prescribed time, then the returns filed will be considered invalid. Previously, assessees had to send a copy of ITR V to CPC but now, through e-verification, one can verify their returns in real time with a few clicks.

Rohit: That is interesting. How do we do e-verification?

Balaji: It is quite simple. Once you finish filing a return (in online mode), you must look to verify it for which many options are available. The assessee can e-verify the returns online through an OTP on mobile number registered with Aadhaar card (PAN and Aadhaar must be linked) or through an EVC (Electronic Verification Code), which is a 10-digit alphanumeric code sent to registered mobile to verify an item electronically. EVC can be generated through pre-validated bank or demat account or through net banking, EVC, once generated, is valid for 72 hours only.

Another way to e-verify is through Digital Signature Certificate (DSC). The assessee can go to an e-filing website and register for DSC (option will be in profile section of the account). DSC authenticates your identity electronically and is considered very secure by ensuring absolute privacy of information exchanged.

Rohit: Cool, but what is the deadline for e-verifying returns filed?

Balaji: It is advisable to verify the return immediately after filing but the department gives time of 30 days post filing of return (online). In case one misses this deadline, a condonation request must be filed with a valid reason for delay. It must be noted that the return will be deemed to be filed only when the condonation request is approved.

Rohit: What are the consequences if the filed returns are deemed invalid because of delay in verification?

Balaji: In such a case, the assessee is liable for penalty u/s 234F of Income Tax Act i.e., penalty of ₹5,000 if the return is filed before December 31 of the assessment year or ₹10,000 in any other case. However, if the total income of the assessee does not exceed ₹5 lakh, then the fine will be limited to ₹1,000.