Verification of Income Tax Return

Income Tax Return Verification

Once you file an Income Tax Returns, it is mandatory to verify the same within 120 days from the date of filing the returns. In case one does not verify the filed returns within the stipulated time, the IT returns that have been filed will be invalidated by the IT department. The IT department starts processing the returns so filed as well as refunds if applicable, only after the completion of the Income Tax ( ITR) verification process.

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Methods of Income Tax Return (ITR) Verification

Traditionally, ITR could be verified through a physical ITR-V form. Now there are multiple online methods for verifying returns for Individual, LLPs, Partnerships, HUF etc. such as Aadhar OTP, EVC via Net Banking or bank account, verification through Demat account etc. while in case of the One Person Company or Private Limited Company the ITR e- verification must be done through DSC only.

With E-verification of ITR, Verifying your tax returns has become quite simple and straight-forward. Although you can still send your ITR to CPC Bangalore by post, the e-Verification facility allows you to verify your ITR with ease. Let us discuss the methods of E-verification of ITR in detail.

ITR Verification via Aadhar OTP

• This is the most common and easiest method for the ITR verification.
• To verify your ITR using the Aadhaar-based one-time password (OTP), your mobile number must be linked to Aadhaar.
• It must be registered as such in the Unique Identification Authority of India (UIDAI) database.
• Your PAN must be linked with Aadhaar.

Generating EVC via Net banking

• You can verify your ITR if you have availed the Net banking facility of your bank account.
• One must remember that only selected banks allow you to e-verify your ITR.
• Also, before logging in to your bank account, ensure that you are not already logged in on the e-filing website.
• Your PAN must be registered with the bank as well.
• Log in to your bank account and click on the “e-Verify” link, usually under the Tax tab. As you click on this link, your bank’s website redirects you to the e-filing portal.
• Once there, under the “My Account” tab, you will have an option to generate the Electronic Verification Code (EVC).
• The code will be sent on your registered mobile number and email-id.

Generating EVC via Bank account

• The IT department allows you to e-Verify your ITR through the bank account.
• This facility is available only with the selected banks.
• However, you must validate your bank account on the e-filing portal first. To do so, log in to your e-filing account and go to the “Profile Settings”.
• You will have to enter details like your bank’s IFSC code and name, your account number, and your mobile number.
• The PAN in your bank account must match the IT records.

Generating EVC through your bank ATM

• The income tax department offers the facility to generate code through selected bank ATMs.
• To generate EVC, visit your bank’s ATM and swipe your ATM card.
• Click on the ‘Pin for Income Tax filing’. An EVC will be sent to your registered mobile number.
• This EVC is valid for 72 hours.

Verifying tax-returns through demat account

• If you are a demat account holder, you can use your demat account to verify your ITR.
• This method is similar to the bank account based ITR validation. You must pre-validate your demat account to verify your tax return.
• Go to profile settings and enter the required details such as mobile number, email ID, and your depository name, i.e., NSDL or CDSL.
• You must enter mobile number and email ID which is linked to the demat account.

Verifying ITR through DSC

• A digital signature is an electronic form of a signature that authenticates the signatory of a document.
• A Digital Signature Certificate (DSC) is the electronic format of a physical or paper certificate that serves as a proof of identity of an individual.

What should you use to verify your Income Tax return- OTP or DSC?

Taxpayers belonging to the below categories should e-verify ITR using OTP or any other method other than DSC:

• Following taxpayers can e-verify their ITR through OTP or by generating EVC (if they does not require to audit their account):

1. Individuals
2. Partnership firm
3. Limited Liability Partnership (LLP),
4. Hindu Undivided Family (HUF)

Taxpayers belonging to the below categories should e-verify ITR using a DSC:

• The One Person Companies and Private Limited Companies must verify their income tax returns via DSC only.
• Individual, Hindu Undivided Family (HUF), Partnership firm, and Limited Liability Partnership (LLP) who needs their Accounts audited u/s 44AB.

Must read: Tax Audit u/s 44AB- whether you require to audit your books of account or not?