Income Tax: In a significant development for the financial year 2024-25, more than 7.28 crore income tax returns (ITRs) were filed by the deadline of July 31, 2024. This marks a 7.5% increase compared to the 6.77 crore ITRs filed by the same date last year, as per a Press Information Bureau (PIB) release dated August 2, 2024.
Importance of E-Verification for Processing and Refunds
However, it’s important to note that filing the return is just the first step. The process of e-verification is crucial to commence the processing of ITRs and to issue any refunds. As of July 31, 2024, over 6.21 crore ITRs have been e-verified, with more than 5.81 crore of these verifications completed through Aadhaar-based OTP, accounting for 93.56% of the total. Of the e-verified ITRs, more than 2.69 crore returns (43.34%) have already been processed for the assessment year 2024-2025.
Taxpayers are urged to ensure that they e-verify their ITRs within the stipulated 30-day window, as failure to do so will delay the processing of returns and any potential refunds.
New 30-Day E-Verification Timeline
A key update highlighted by the PIB is the revised timeline for e-verification. Effective from August 1, 2022, the Income Tax Department reduced the time limit for e-verification or hard copy submission of ITR-V from 120 days to 30 days. This means taxpayers now need to verify their returns within 30 days of filing to complete the process. The earlier 120-day limit remains applicable for returns submitted electronically before August 1, 2022.
Implications of E-Verifying Within the 30-Day Deadline
If taxpayers e-verify their returns within the 30-day deadline, the date of electronic transmission of ITR data will be considered the date of furnishing the return. This is crucial for the timely processing of ITRs and the issuance of refunds. Failure to verify within this period could lead to delays and complications, potentially requiring reissuance of the ITR.
Ensuring Timely Refunds
Taxpayers are reminded that no income tax refund will be issued unless the ITR is verified. Both online and offline methods are available for verification, ensuring that the process is accessible and convenient for all. It is advisable for taxpayers to complete this step promptly to avoid any delays in receiving refunds.
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