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The Importance of Income Tax Return (ITR) Verification

Income Tax Return (ITR) verification is a crucial step in the tax filing process for individuals. It signifies the completion of the tax return filing and ensures that the submitted returns are valid and will be processed by the tax authorities. This article delves into the significance of ITR verification and why it is essential for every taxpayer.

Validity

One of the primary reasons for verifying your ITR is that it is a required procedure. According to the Income Tax Department of India, an ITR is not considered valid until it is verified. Failure to verify your ITR can result in your return being treated as invalid, which means that you have not fulfilled your obligation to file taxes.

Preventing Penalties

If you fail to verify your ITR, it is equivalent to not filing your return at all. This can attract penalties under the Income Tax Act. Penalties for non-compliance can be significant and may include fines and interest on the tax due. By verifying your ITR, you avoid these unnecessary penalties and ensure compliance with tax laws.

Ensuring Timely Refunds

For taxpayers who are eligible for refunds, timely verification of ITR is crucial. The Income Tax Department processes refunds only after the ITR is verified. Delayed verification can lead to delays in receiving refunds, which can affect your financial planning. Verifying your ITR promptly ensures that any refunds due to you are processed and credited to your account without unnecessary delays.

It is important to note that the ITR should be verified within 30 days of filing the ITR.

How to Verify Your ITR

The Income Tax Department of India offers several methods for ITR verification:

Aadhaar OTP: Using the OTP sent to your registered mobile number linked with Aadhaar.

Net Banking: Through the net banking facility of your bank.

Electronic Verification Code (EVC): Using the EVC generated through your pre-validated bank account or EVC generated through your pre-validated demat account.

Digital Signature Certificate (DSC): Using a registered DSC.

Physical Verification: Sending a signed physical copy of the ITR-V to the Centralized Processing Center (CPC) of the Income Tax Department.

As per the Income Tax Department, certain prerequisites for ITR verification are:

1. PAN must be linked with Aadhaar to verify ITR using Aadhaar OTP option.

2. PAN must be linked with bank account and the net banking account should be enabled as the preferred bank account to verify ITR through Net Banking.

3. The bank account should be pre-validated and EVC enabled to verify ITR using EVC.

4. A valid and active DSC is required to verify ITR using DSC.

ITR verification is a simple yet vital step that ensures your tax return is complete and compliant with all the mandatory requirements. By verifying your ITR, you avoid potential penalties and ensure timely processing of refunds. Therefore, every taxpayer should prioritize ITR verification to enjoy a hassle-free tax experience.