Time limit for verification of income tax return reduced from 120 days to 30 days

The income tax department has reduced the time limit for e-verification or hard copy submission of the ITR-V, post-filing taxpayer returns, from 120 days to 30 days. The order comes into effect from August 1.

The department issued a notification on July 29 announcing the change in the timeline.

E-verification of an income tax return (ITR) completes the return filing process, and if it is not done within the stipulated time, an ITR is treated as invalid.

Also read: 10 key changes in Income Tax rules this year

IT department notification

“It has been decided that in respect of any electronic transmission of return data on or after the date of this notification comes into effect, the time limit for e-verification or submission of ITR-V shall now be 30 days from the date of transmitting/uploading the data of return electronically,” the notification said.

Until now, the period to e-verify the ITR or send the ITR-V through the post after filing it was 120 days from the date of the uploading of the ITR.

The notification clarified that in case the e-verification of the ITR or hard copy ITR-V is sent through post beyond the time limit of 30 days, the return shall be treated as late or beyond the due date.

Hard copy to be sent through ‘speed post’

Those who wish to send the ITR-V in a hard copy can send it through the usual address through “speed post only” to Centralised Processing Centre, Income Tax Department, Bengaluru-560500, Karnataka.

“The date of dispatch of speed post shall be considered for the purpose of determination of the 30 days period, from the date of transmitting the date of Income-tax return electronically,” it said.

Also read: Number of income tax returns rising: CBDT Chairman

Meanwhile, more than 5.8 crore ITRs were filed till July 31 – the last day for filing the return — for FY 2021-22. Taxpayers who failed to file their returns by the due date would have to pay a penalty from August 1. There is a fine of up to Rs 5,000 on late ITR filing, which can be done till December 31, 2022.