The Central Board of Direct Taxes (CBDT) has recently introduced a change in the process of verifying Income Tax Returns. The CBDT has reduced the time limit for ITR verification from 120 days to 30 days, vide Systems Notification 5/2022 dated 29/07/2022, with an aim to make the verification process more efficient for taxpayers.
CBDT Income Tax Systems Notification 5/2022 dated 29/07/2022: CBDT notifies Revised Timeline of 30 Days for ITR Verification
Revised Timeline Effective from August 1, 2022
Under the new notification, taxpayers filing their ITR electronically on or after August 1, 2022, must now complete the verification within 30 days from the date of transmitting or uploading the data of their ITR. This shortened timeline will apply to all ITRs filed through the electronic mode, bringing about a significant change in the way tax compliance is managed.
Timeline up to July 31, 2022
For those taxpayers who filed their ITR before the implementation of the new notification (i.e., before August 1, 2022), the earlier time limit of 120 days for verification will continue to be applicable. This transition phase allows taxpayers to understand and adapt to the new regulations without immediate disruptions.
Ensuring Timely Verification
With the revised 30-day timeline, taxpayers must be proactive in verifying their ITRs within the stipulated period. The verification process can be completed in two ways:
1. E-Verification
Taxpayers can opt for e-verification (Aadhaar OTP/DSC), where they validate their ITR electronically within 30 days of submitting the return data. If the verification is completed within this period, the date of transmitting the data electronically will be considered as the date of furnishing the return of income.
2. ITR-V Submission
Alternatively, taxpayers can choose to submit the ITR-V form. In such cases, the ITR-V must reach the Centralized Processing Centre in Bengaluru by speed post within 30 days of electronically transmitting the return data. The date of dispatch of the speed post will be considered for determining the 30-day verification period.
Consequences of Late Verification
It is crucial for taxpayers to adhere to the 30-day timeline for ITR verification. Failure to verify within the stipulated period will result in consequences for belated returns as per the Income Tax Act. Late verification may lead to penalties or other legal implications, underscoring the importance of timely compliance.
Conclusion
The CBDT’s move to reduce the ITR verification time limit from 120 days to 30 days is a significant step towards enhancing tax compliance efficiency. Taxpayers must embrace this change and be proactive in completing the verification process within the prescribed timeline.