• Notification Date: 02-08-2023
  • Notification No: N/A

ITR Filing: Will Income Tax Return be considered Invalid if ITR is not Verified?

Verification of the Income Tax Return (ITR) is a mandatory step to complete the return filing process. If you fail to follow this step within the specified period, your ITR filing could become invalid. 

Failure to verify the ITR within 30 days after e-filing can result in potential delays in processing and refund. It is mandatory for taxpayers to adhere to the specific rules set forth by the Income Tax Department, including timely verification of the ITR. 

The Central Board of Direct Taxes (CBDT) has recently notified that the e-verification timeline for ITRs filed on or after 1st August 2022 has been reduced to 30 days. 

Modes of Verification:  

1. Electronic and Physical 

Verification can be done using electronic methods like the Aadhaar OTP, Electronic Verification Code (EVC) through a bank or Demat account, or even physically by sending a signed ITR-V through speed post to CPC Bengaluru. To e-verify using Aadhaar OTP, it's necessary that your mobile number is updated with your PAN-linked Aadhaar. 

Recently, the income tax department has been in the practice of sending email reminders to taxpayers who have neglected to verify their tax returns.   

Penalties for not verifying ITR filing 

The Income Tax Department considers an unverified ITR as invalid. An invalid ITR is as good as not filing the ITR at all, even though you may have submitted all the details correctly. It won't be processed until it's been verified. Due to the ITR not being processed, no tax refunds will be issued until verification. You may also attract additional interest on the due tax amount. The interest is usually calculated at 1 per cent per month or part of a month on the outstanding tax due. 

Non-verification within the stipulated time can result in a late fee of Rs 1,000 or Rs 5,000 (Where the total income is more than Rs 5 lakh) as per Section 234F of the Income Tax Act, 1961. Additional penalties and legal repercussions may also follow if ITR is not verified for a longer period.