Discard ITR option 4 unverified belated/original/revised ITR

Very Important Update Related to ITRs from AY 2023-24- Tax Dept issue on FAQ related to Discard ITR

• The Income Tax Department portal now features a “Discard ITR” option for unverified Income Tax Returns (ITRs), applicable for belated, original, or revised ITRs under sections 139(1), 139(4), and 139(5) starting from Assessment Year (AY) 2023-24.
• ‘Discard Return’ option on the Tax dept portal, which permitted income tax taxpayers to rectify errors in their Income Tax Return & file a fresh Income Tax Return.
• Income tax taxpayers’ users can avail option of ‘Discard’ for Income Tax Return’s being submitted under section 139(4) /139(1) / 139(5) if they do not want to verify ITR.
• Discard option is only available for Income tax taxpayers with unverified ITR returns from AY 2023-2024 onwards.  while there are no specific income tax provisions under Tax Law for option of discard return,
• This income tax law change is an attempt to streamline process of filing ITR’s.  It is compulsory to submit subsequent fresh  Income Tax Return, after discarding previous unverified Income Tax Return.
• Moreover, Incase Income tax taxpayer wishes to file a revised ITR return in future date, Taxpayer must provide information of original filing acknowledgment number & date of the valid Income Tax Return.

Key Points on discard the Income Tax Return

1. Discard Option Availability: Available for unverified ITRs from AY 2023-24 onwards. &  Applies to ITRs filed under sections 139(1), 139(4), and 139(5).
2. Allows taxpayers to rectify errors in their ITR and file a fresh return. Once the discard option is exercised, the previous unverified ITR is considered non-filed. A new ITR must be submitted after discarding the previous one.
3. If the new ITR is filed after the deadline, late fees and other consequences may apply. The discard option is irreversible once exercised. The feature is available until the ITR filing due date (31st December following the end of the financial year).
4. When filing a revised return, provide the acknowledgment number and date of the original valid ITR.

Summary on discard the Income Tax Return

• Opting to discard the Income Tax Return is equivalent to non-filing of the Tax Return.
• Following the discard, a new ITR can be Filed. But, if fresh ITR Return is file after timeline date, it will incur late fees & other associated consequences.
• Once discard option is exercised, Income Tax Return cannot be reversed. Use this option cautiously.
• The Discard ITR feature is available until the Income Tax Return filing due date, i.e., until 31^st Dec following  end of FY. It is advising to Income tax taxpayer Timely action is advised.

Taxpayers are advised to use the discard option cautiously and take timely action to avoid penalties and ensure compliance. this is update from Tax Portal new features a “Discard ITR” option for unverified belated/original/revised (u/s 139(1) /139(4) / 139(5)) ITR’s starting from AY 2023-24.

For more details and FAQs on discarding a Tax return, You may visit the official Income tax FAQ page which mention here under : link 

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