Income tax department has reduced the time limit of verify income tax return from 120 days to 30 days last year. To read more about this change CLICK HERE: Time limit for verification of ITR reduced from within 120 days to 30 days of filing of ITR electronically – Taxontips
However, there was one more condition added in the notification when the time limit to verify income tax return was reduced from 120 days to 30 days.
Normally if an income tax return is not verified within the prescribed time limit it is considered as a defective return and then assessee has to apply for condonation application on e-filing portal before CPC and then he can verify his income tax return.
In the notification No. 05 of 2022 Dt. 29.07.2022, another condition or after effect was added if the return was not verified within due time. In the notification it was mentioned that
(i) if the return is verified within due time then the date of filing income tax return would be considered as the date when return was filed.
(ii) However, if the return is filed after the due date i.e. after 30 days of filing the date of filing of such income tax return shall be considered as the date on which the return was verified and all the consequences of late filing as is applicable in the law shall follow. Now what does that mean?
Let’s try and understand it with an example:
Suppose an assessee has filed income tax return on 31.07.2023, his due date for verifying the income tax return would be 30.08.2023, but the assessee verifies his income tax return on 31.08.2023. Now according to the above notification the actual date of filing would be 31.08.2023 and accordingly all consequences of late return would apply which means that such assessee will have to pay late fees as per section 234F of the Act as return has been filed after due date assuming his due date for filing income tax return is 31.07.2023.
Further, if the assessee had claimed any loss in the Income tax return it won’t be allowed to be carried forward, because as per Income tax Act if an assessee has to carry forward any loss (except loss form house property), assessee has to file income tax return within due date.
If an assessee would have opted for new regime, as per the above notification he won’t be allowed to opt for new regime.
There could be more consequences but these are some visible consequences of verifying the income tax return after 30 days. Such consequences would be visible in intimation received from income tax department after the income tax return is processed u/s 143(1) of the Act.
Relevant extract of the Notification are as under:
“6. It is further clarified:
Where ITR data is electronically transmitted and e-verified/lTR-V submitted within 30 days of transmission of data — in such cases the date of transmitting the data electronically shall be considered as the date of furnishing the return of income.
Where ITR data is electronically transmitted but e-verified or ITR-V submitted beyond the time-limit of 30 days of transmission of data — in such cases the date of e-verification/lTR-V submission shall be treated as the date of furnishing the return of income and all consequences of late filing return under the Act shall follow.”
Hence, now nothing has been mentioned about applying for condonation application as was required earlier wherein no late fees was being charged. However, now the provisions are more harsh wherein if assessee has verified income tax return then date of filing of such return would be date of verification of income tax return.
Further, also clarification is required what if return is filed on 30.06.2023 and if verified on 31.07.2023, will there be any consequences of such an action also?
Further, as earlier assessee should be allowed condonation for such an action as was done earlier since it is a right of assessee and if assessee is filed his return on his own e-filing portal, date of filing return of income should not depend on when the return is verified or else it might lead to lot of litigation and hardships to assessee.
What are your thoughts on above? Did you verify your income tax return within due time?
To read more about how to E-verify your income tax return CLICK HERE: Income tax department runs campaign to allow e-verification of return after 120 days for AY 2022-23 – Taxontips
Guidance on above article for Indian Income Tax by:
Naman Maloo (C.A., B.Com)
He is currently working as Partner – Direct Tax with a renowned firm in Jaipur having experience in dealing Assessments before Income Tax authority, Tax Audit, International Taxation, Tax planning for NRI, Business planning and consultation.
E-mail: naman.maloo@jainshrimal.in | LinkedIn: Naman Maloo
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