Income Tax News: So, with the deadline for ITR filing creeping closer, they must have already filed it or are getting ready to do so. July 31 is the last date to file the return. One should be clear on this note that after the submission of the income tax return, one’s job does not end there. It is only through the verification process that one can ensure one has legally been compliant with the taxes. These are the ways that it aids in:
Legal Compliance
Filing of ITR indicates to the Income Tax Department that you have declared the income in the manner required, including deductions claimed by you. This is a statutory requirement under the Income Tax Act of India. Failure to comply will lead to penal consequences mentioned in law.
No Penalties
Section 234F: However, Section 234F penalizes if the assessee doesn’t validate the ITR within the prescribed times. In this regard, the amount of penalty could differ, ranging from ₹1,000 to ₹10,000, according to the period of delay.
Starting 2022, ITR verification has a reduced time limit of up to 30 days from the date of filing. These make it imperative that the taxpayers should verify their returns with promptness to reduce the penalties and for the taxing authority to treat them and have their returns processed in time.
Faster Processing
The Income Tax Department will process the authenticated ITRs at a faster rate, invariably resulting in faster refunds, besides bringing down the potential of errors or mismatches.
E-Verification Convenience
E-verification has automated the verification process, making it easier and more convenient for the department as well as the taxpayers. The returns can be verified electronically via aadhaar OTP, net banking, and Demat account. Consequently, the physical ITR-V forms are no longer required.
Confirmation of Submission
By verifying the ITR, a person is assured that his tax return was successfully filed and the department took it on record. This brings one peace of mind and checks compliance with the requirements of the tax laws.
E-verification is truly extremely important to avoid penalties, ensure compliance with the tax regime as prescribed in the Income-tax Act, 1961, and process your taxes within time. It’s fair, therefore, that each taxpayer is advised on the timelines and each taxpayer takes up on e-verification to make the complete experience of handling and filing of tax returns a hassle-free exercise.
