CBDT: One-time relaxation, proof of all ITR e-filed for 2020-21, pending proof and processing

CBDT: One-time relaxation, proof of all ITR e-filed for 2020-21, pending proof and processing

Central Board of Direct Taxes (CBDT) has announced a one-time relaxation for verification of all e-filed Income Tax Return (ITR) pending verification and processing for Assessment Year 2020-21.

In the case of electronic filing of an Income-tax Return (ITR), without a digital signature, the taxpayer is required to verify it using one of the following methods within 120 days of uploading the ITR. It was through Aadhaar OTP, log in with net banking, EVC with the bank account number, EVC with Demat account number, EVC with bank ATM, sending a duly signed physical copy of ITR-V by post to the CPC, Bengaluru.

According to the CBDT, a large number of ITRs submitted electronically for the Assessment Year 2020-21 are still pending with the Income-tax Department due to the absence of a valid ITR-V Form at the Central Processing Centre (CPC), Bengaluru, or pending e-Verification by the taxpayers concerned. The consequences of failing to verify the ITR within the time allowed are significant since such an ITR can be declared invalid when it is not verified. A non-filing ITR is followed by the consequences specified in the Income-tax Act, 1961.

The Board of Directors has decided to relax the submission of ITR-V/e-Verification for resolving grievances of taxpayers associated with non-verification of ITRs for the Assessment Year 2020-21 and regularizing such ITRs which have either become non-est or have remained pending with the Income Tax Department for lack of ITR-V Form or pending e-Verification. Due to this, the Board has decided to complete all TRs for Assessment Year 2020-21 which have been uploaded electronically by the taxpayers within the time allowed under section 139 of the Act. It remained incomplete due to no submission of the ITR-V Form pending e-Verification, in exercise of its powers under section 119(2)(a) of the Act. It allows verification of such returns either by submitting a duly signed physical copy of ITR-V to the CPC, Bengaluru through speed post or by means of EVC/OTP as mentioned in paragraph 1 as above. By 28th Feb, 2022, this verification process must be completed.

It shall not be applicable to cases where the Income-tax Department has already taken any other measure prescribed by the Act to ensure the filing of tax returns by the taxpayer concerned after declaring the return non-est during the interim period.

Furthermore, the Board has eased the time-frame for sending the intimation, as stipulated in the second proviso to subsection (1) of Section 143 of the Act, by instructing that such returns shall be processed by 30th June, 2022 and notification of such processing shall be sent to the taxpayer concerned, according to the procedure laid down. When determining interest, section 244A (2) of the Act will be applied to refund cases. All the returns that are verified during the extended period will be subject to this relaxation.