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Not verifying your income tax returns might have serious consequences

Refunds get blocked, losses aren't carried forward, and you could face a penalty

income tax returns

Round-the-clock performance review

September 30 was the last date for verifying your pending income-returns (ITR) for the past several assessment years. If you have failed do so despite an extension, you could face the heat from the I-T department.

Taxpayers need to meet four stages of compliance. Says Vivek Jalan, partner, Connect Advisory Services: “Pay income tax, prepare and submit an I-T return on the filing portal, verify the return, and then get it processed by the I-T department. At times, taxpayers do not verify their returns. This could be an oversight on their part. Overburdened tax professionals don’t ensure their clients do so. Sometimes, it is because their Aadhaar and mobile number are not updated, or there is a delay in sending the hard copy of ITR-V.”

Relaxation was given: The Central Board of Direct Taxes (CBDT) had, via a circular dated July 13, allowed a one-time relaxation for verification of returns for specified years. “Individuals whose returns were not verified for assessment years (AY) 2015-16, 2016-17, 2017-18, 2018-19 and 2019-20 could verify them by September 30, 2020,” says Gopal Bohra, partner, NA Shah Associates.

Not everyone was eligible for this relaxation. “It did not apply to cases where during the above-mentioned period, the department has already issued a notice or taken measures to ensure filing of returns after declaring such returns as invalid,” says Jalan.

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First Published: Fri, October 23 2020. 16:01 IST