A final chance to complete filing pending returns

You can electronically verify returns and regularise these by August 31.

If you had filed your income tax return but it has not been processed because the acknowledgement (ITR-V) didn’t reach the department, there’s a chance to regularise it.

The Central Board of Direct Taxes (CBDT) has provided a ‘final opportunity’ to taxpayers to complete pending tax returns for the previous six assessment years. 

In a recent circular, CBDT said despite filing returns, the income tax department has not been able to process returns of “a large number” of assessees because of non-receipt of ITR-V.

The department is therefore giving such individuals a chance to verify their returns from assessment year 2009-2010 onwards. This can be done by August 31. 

“It’s common that despite sending the ITR-V to the Central Processing Centre (CPC) of Income Tax at Bengaluru, the returns are not processed. It can happen as your document didn’t reach the CPC on time because of a logistical issue or because the assessee has not followed the instructions mandated by the I-T department,” says Amit Maheshwari, managing partner at chartered accountancy firm Ashok Maheshwary & Associates.

An assessee needs to send the ITR-V within 120 days of filing returns. 

This is especially a good opportunity for those who have not received their refunds and also those who were unable to carry forward their losses as the department had not received their ITR-V. On verifying returns, these will be regularised, too. 

But, this is meant only for those who have filed returns, points out Vikram Ramchand, co-founder of Makemyreturns.com. Those who haven’t don’t have a recourse.

Experts also say individuals should comply with other information that the department might seek along with verifying returns. Once you log into your account on the I-T filing website, under the tab ‘compliance’ and ‘worklist’, you may see that the department is seeking explanations for unfiled tax returns, or an outstanding demand or investments made over Rs 2 lakh in a financial year. 

If you don’t comply with the deadline, it can have consequences. “If you miss the August 31 deadline, the I-T department will consider that you have not filed your returns,” says Homi Mistry, partner, Deloitte Haskins and Sells. This can lead to the department sending you a notice asking to explain the reasons and thereafter levying a penalty. 

The best part is that the assessee can use the newly-introduced methods to verify returns rather than physically send the ITR-V through post.

If you have filed returns electronically, you can use the Aadhaar card or bank account to verify returns online. All you need to do is log into your online I-T filing account. Click on the ‘Dashboard’ tab.

On the page that opens up, click on the option ‘View Returns/Forms’. Here, you will see an option to check returns pending for verification.

On selecting the option, you can see all the years where your returns were not processed because of non-receipt of ITR-V. You can e-verify your returns using options such as net banking, bank account number, demat account, registered ID and mobile number and also using Aadhaar. 

The I-T department has made it easy for verification of returns for previous years, use the opportunity to regularise them.