The Income Tax Return (ITR) filing season in India brings with it not only the responsibility of filing returns correctly but also verifying the return within a specified time frame. Verification is a mandatory step to complete the ITR filing process. Over the years, the Income Tax Department has revised the timelines for ITR verification to streamline processes and encourage timely compliance.
Recently, changes have been made in the compliance timeline for ITR verification, impacting both individual taxpayers and professionals managing returns for clients. In this article, we’ll discuss the latest changes, implications, verification methods, and what every taxpayer should know to stay compliant and avoid penalties.
After filing your Income Tax Return on the e-filing portal (https://eportal.incometax.gov.in/iec/foservices/), the return must be verified to be considered valid. Without verification, the return is not processed and is treated as invalid.
Verification confirms the authenticity of the information provided in the return. This can be done either electronically (e-verification) or by sending a signed physical copy of ITR-V (Verification form) to the CPC office in Bengaluru.
Until July 2022, taxpayers were allowed 120 days from the date of filing the return to complete the verification process. This gave individuals ample time to opt for e-verification methods or post the signed ITR-V.
However, the Income Tax Department noticed that a considerable number of taxpayers delayed the process, often forgetting to verify the return altogether, which resulted in delayed processing, refunds, or the return being declared invalid.
To bring more discipline and timeliness in return processing, the Central Board of Direct Taxes (CBDT), via Notification No. 5/2022, reduced the timeline for ITR verification from 120 days to 30 days. This change came into effect from August 1, 2022.
For ITRs filed on or after August 1, 2022, the verification must be completed within 30 days of filing.
For ITRs filed before August 1, 2022, the old 120-day timeline still applies.
If verification is not completed within 30 days, the return is considered invalid, and you may have to file it again as a belated return, subject to penalties.
There are two methods to verify an ITR:
This is the fastest and most preferred method. You can verify your return through:
Aadhaar OTP
Net banking
EVC (Electronic Verification Code) via bank account or demat account
Digital Signature Certificate (for companies and certain individuals)
Download the ITR-V form from the e-filing portal.
Sign it manually in blue ink.
Send it via ordinary post or speed post (not courier) to:
Centralized Processing Centre (CPC),
Income Tax Department,
Post Box No. 1, Electronic City Post Office,
Bengaluru – 560100, Karnataka.
Note: The date of dispatch of the post will be considered for the 30-day timeline.
Failure to verify your ITR within the prescribed time frame can lead to the following consequences:
Your ITR will be considered invalid.
You will be required to refile the return, possibly under belated return, which attracts:
Late filing fee under Section 234F.
Loss of certain deductions or exemptions.
Delayed refunds, if any.
May trigger unnecessary scrutiny notices from the department.
Verify Immediately: Always verify the return on the same day or within a couple of days after filing.
Opt for E-Verification: It is quick, secure, and hassle-free. Avoid physical forms unless necessary.
Track Verification Status: Login to your e-filing portal and check the status under “View Filed Returns.”
Set Reminders: Especially useful for businesses and tax consultants handling multiple filings.
In certain cases where the delay is due to genuine hardship or technical issues, the Income Tax Department may condone delay in verification. However, such relief is not automatic and must be applied for separately, with valid reasons and supporting documents.
The reduction of the ITR verification timeline from 120 days to 30 days reflects the government's intent to fast-track return processing and encourage prompt compliance. For taxpayers, this means staying updated and responsive during the ITR filing season.
If you’re filing your ITR, ensure that verification is not overlooked—it’s just as important as the filing itself. Choose an e-verification method wherever possible to complete the process quickly and securely.