Income Tax Return: I-T dept provides one-time relaxation, relief for ITR filing

The Income Tax department has now informed that the Central Board of Direct Taxes (CBDT) has decided to provide one-time relaxation for the verification of e-filed Income Tax Returns which are pending e-verification. The tax department stated that the last date to file ITR for AY 2020-21 will remain December 31, 2021. The announcement comes amid taxpayers complaining over hardship to e-file ITR 2020-21 due to glitches in the portal.

The tax department in its latest tweet informed that the CBDT will be providing one-time relaxation for the verification of e- tax filing. The department shared the circular by the board regarding the new decision. The circular issued by CBDT said, “It has been brought to the notice of Central Board of Direct Taxes (‘Board’) that a large number of electronically filed ITRs for the Assessment Year 2020-21 still remain pending with the Income-tax Department for want of receipt of a valid ITR-V Form at CPC, Bengaluru or pending e-Verification from the taxpayers concerned.”

CBDT eases ITR pending E verification

“In law, consequences of failure to verify the ITR within the time allowed is significant as such an ITR is/can be declared non-est. Thereafter, the consequences for non-filing an ITR, as specified in the Income-tax Act,1961 (‘the Act’) follow,” the circular further stated. The board informed that the verification process of e-filing the ITR must now be completed by February 28.  

The CBDT, in its circular also noted the process for the verification of e-filing ITRs. It reiterated that taxpayers filing ITRs electronically without an electronic signature must verify it within 120 days using data like Aadhaar OTP, EVC through Bank ATM etc. It further noted that the returns can now be filed by February 28, 2022.

CBDT issues new deadlines to complete ITR pending E Verification

“In respect of all ITRs for Assessment Year, 2020-21 which were uploaded electronically by the taxpayers within the time allowed under section 139 of the Act and which have remained incomplete due to nonsubmission of ITR-V Form pending e-Verification, the Board, in the exercise of its powers under section 119(2)(a) of the Act, hereby permits verification of such returns either by sending a duly signed physical copy of ITR-V to CPC, Bengaluru through speed post or through EVC/OTP modes as listed in para 1 above. Such verification process must be completed by 28.02.2022,” the circular noted.

The board also noted that the relaxation shall not apply in cases, where the 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, during the intervening period. It also said that, “the board was now relaxing the time-frame for issuing the intimation as provided in second proviso to sub-section (1) of Section 143 of the Act and directs that such returns shall be processed by 30.06.2022 and intimation of processing of such returns shall be sent to the taxpayer concerned as per the laid down procedure.”

Earlier on Monday, the Ministry of Finance said that more than 4.67 crores ITRs had been filed on Income Tax's new portal, with over 15.49 lakh ITRs on December 27. "Out of 4.67 crore ITRs filed for AY 2021-22, 53.6% of these are ITR1 (2.5 crore), 8.9% is ITR2 (41.7 lakh), 10.75% is ITR3 (50.25 lakh), 25% are ITR4 (1.17 crore), ITR5 (5.18 lakh), ITR6 (2.15 lakh) and ITR7 (0.43 lakh). Over 48.19% of these ITRs have been filed using the online ITR form," Centre said. Not filing an income tax return or late filing can draw a penalty up to Rs 5000. If the taxable income is less than Rs five lakh then the penalty will be Rs 1,000. 

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