It has been brought to the notice of Central Board of Direct Taxes (`CBDT’) that a large number of electronically filed ITRs still remain pending with the Income-tax Department for want of receipt of a valid ITR-V Form at CPC, Bengaluru from the taxpayers.
In law, consequences of non-filing the ITR-V within the time allowed is significant as such a return is/can be declared as non-existent ( i.e. declaring such returns as ‘non-est’), thereafter, all the consequences for non-filing a tax return, as specified in the Income-tax Act,1961 (Act) follow.
The CBDT has provided a one-time opportunity to taxpayers in case of returns for Assessment Years 2015-16, 2016-17, 2017-18, 2018-19 and 2019-20 which were uploaded electronically by the taxpayer within the time allowed under section 139 of the Act and which have remained incomplete due to non-submission of ITR-V Form for verification, permits the verification of such ITRs which must be completed by 30.09.2020
In respect of an Income-tax Return (ITR) which is filed electronically without a digital signature, the taxpayer is required to verify it using any one of the following modes within the time limit of 120 days from date of uploading the ITR: –
Through Aadhaar OTP
By logging into e-filing account through net banking
EVC through Bank Account Number
EVC through Demat Account Number
EVC through Bank ATM
By sending a duly signed physical copy of ITR-V through post to the CPC, Bengaluru.
Considering the large number of ITRs still pending for verification as per IT dept records, as a one-time measure for resolving the grievances of the taxpayers associated with non-filing of ITR-V for earlier Assessment Years and to regularize such returns, hereby permits verification of such returns through any of the modes listed above.
Such verification process must be completed by 30.09.2020.
This relaxation shall not apply in those cases, where during the intervening period, Income-tax Department has already taken recourse to any other measure as specified in the Act for ensuring filing of tax return by the taxpayer concerned after declaring the return as invalid. (i.e non-est).
CBDT, also extended the last date for issuing the intimation ( comparison of computation submitted by taxpayer in ITR vs IT dept. calculated computation) as per section 143(1) of the Act and directs that such returns shall be processed by 31.12.2020. As per Income tax provisions, the due date for the same is within one year from the end of the relevant AY of which ITR has been filed.
Circular No. 13/2020, dated 13-7-2020 (click here to download)