• Notification Date: 29-11-2023
• Notification No: N/A

New ‘Discard ITR’ Facility on Income Tax Website from AY24

The income tax (I-T) department has introduced a crucial functionality on its website allowing taxpayers to discard their previously filed but unverified Income Tax Returns (ITR). Earlier, taxpayers were allowed to revise the ITR only in case of error or omission. 

“The income tax portal has introduced a new feature that enables users to ‘Discard ITR’ for unverified original, belated, or revised ITRs starting from the assessment year 2023-24. It is a good move by the income tax department as it will increase the scope for taxpayers for revision of their income tax return, which was earlier limited to omission and error. However, so far there is no provision in law for discarding the ITR hence going forward its legal validity can be questioned,” said Tarun Kumar Madaan, Tax Head at Coherent Advisors. 

The discard option can be used repeatedly, provided the ITR status remains as unverified or pending verification. The facility is only available for the AY24 onwards for the respective ITR till the specified time limit for filing ITR under section 139(1)/139(4) /139(5). Once an ITR is discarded, it cannot be reinstated. The action is irreversible, and therefore it is essentially disclaiming that the ITR was not filed at all. 

To locate the 'Discard' option, follow the website pathway: www.incometax.gov.in → Login → e-File → Income Tax Return → e-Verify ITR → “Discard.”