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Consequences if you do not verify your ITR?
What will Consequences if you do not verify your Income tax Return with 120-day deadlines; it could happen that you forgot to do so.
- The final phase in the tax return process of filing is verification (ITR). The ITR should be verified within 120 days after the date of filing, according to income tax department. There are 6 alternative ways to confirm an ITR;
- 5 of them should be possible electronically,
- while the 6 th option is to submit an actual duplicate to the Bangalore Centralized Processing Center (CPC).
Is it mandatory to verify ITR?
What will happen if you do not confirm your ITR within the 120-day time limit; it is possible that you may be penalised.
- If an ITR is not verified, the income tax department will not accept it as a valid return. Furthermore, if your ITR is not verified, the tax department will not accept it for processing. Furthermore, any tax refund you request will not be granted unless you have filed a valid ITR and the income tax department has confirmed it after processing.
- If there is a valid reason why an ITR was not confirmed within the required time frame, a condonation delay request can be submitted using the e-filing income tax system. A single will be required at the time of documenting such a request to indicate the explanation for why ITR was not checked previously.
- "U/s 119(2)(b) of the Income Tax Act, the CBDT has given the tax department CBDT discretion to accept an application or claim for any exemption, deduction, refund, or other relief after the term prescribed in the Act has expired." As a result, the income tax department can excuse a delay in certain circumstances, such as when the ITR is not verified within the specified time limit of 120 days from the date of filing."
If the following conditions are met, the tax department will consider a request for a delayed payment:
a) The claim is true and correct;
b) In the hands of any other individual, the income for which a tax return is filed is not assessable.
c) The taxpayer has suffered genuine hardship as a result of the ITR not being verified in a timely manner.
Procedure of filing condonation delay is as follows
To submit a condonation delay request on the new income tax portal, follow the below steps below:
Step-1: Go to the new income tax portal and log in to your account.
Step-2: Select ‘Condonation Request' from the Services Tab on your Dashboard.
Step-3: On the Condonation Request page, you must choose which type of condonation request you want to submit. However, the income tax agency now only offers one option: a delay in ITR-V submission. Select it and press the 'Continue' option.
Step-4: Click Create Condonation Request on the Delay in ITR-V Submission page.
Step-5: On the Select ITR page, click Continue after choosing the record for which you want to submit a condonation for a delay in ITR-V submission.
Step-6: Select the reason for your delay on the Provide reason for delay screen and click Submit.
A success message appears, along with a Transaction ID. Make a note of the Transaction ID for future reference.
A confirmation message will be sent to the email address and mobile number you provided when you registered with the e-Filing portal.
The deadline to submit a request for a condonation delay has expired.
"There is no specific provision in the Income Tax Act that allows for a limitation period for filing a condonation delay request."
However, the CBDT has said in Circular No. 9/2015 dated June 9, 2015 that "no condonation application for claim of refund/loss shall be heard beyond six years from the end of the assessment year for which such application/claim is made."
Monitoring the status of an application for a delay condonation
- The new income tax portal is where you can track the status of your condonation request. The status can be viewed under the 'Services' tab in the 'Condonation Request' page.
- Keep in mind that you won't be able to file an ITR unless your delay condonation request is approved.
- It's important to note that there's no time constraint for condonation requests to be approved or rejected. However, the tax department usually processes such requests in 3 to 4 months.
What if your request for a condonation delay is rejected?
- Under personal assessment laws, a non-checked return is viewed as an invalid return, meaning that a person should bear all of the consequences of failing to register a government form.
- If the assessee's application for approval isn't granted, he or she will be forced to make corrective arrangements. on the grounds that not documenting ITR could be interpreted as tax evasion, one may face consequences or even imprisonment.
What happens if you don't verify your ITR?
Here's a summary of what consequences if you don't file your ITR.
- Such kind of default may be imposed late filing fees of INR 5k U/s 234F. But if total income of An assessee is up to INR 5,00,000/-, then such late fees would be restricted to INR 1k.
- An Assessee would also be subjected to interest U/s 234A at 1 percentage per month or part of the month for any amount of tax remaining outstanding.
- Assessee would not be allowed to claim the benefit of certain deductions and/or set off and carry forward of losses other than loss from house property loss, due to non-filing of the ITR within the specified timeline.
- If a tax return is not filed, the tax dept will assume the reason is tax evasion. They have the authority to apply a penalty U/s 270A for under-reporting income, which is equal to 50 percentage of tax evaded by the taxpayer due to non-filing of the return.
- The authority can also bring a prosecution u/s 276CC against the defaulting taxpayer, which could result in him being sentenced to a period of rigorous imprisonment ranging from three months to two years, as well as a fine, based on the amount of tax avoided.
Income Tax Consultants
- Income tax consultants in India are professionals who are subject matter experts in the field of income tax. In India, income tax is levied on income earned by a person or entity.
- The Central Government regulates income tax, and the applicability of income tax varies between salaried individuals, professionals, businesses, and others. Many individuals and entities in India have a PAN from the Income Tax Department and pay income tax.
- Income tax consultants can help with a variety of services such as income tax return filing, capital gains advice, income tax auditing, income tax consultation, income tax hearings, and more.
- Individuals earning more than a certain amount of money must pay income tax, file returns, and submit a tax audit report. Income tax consultants in India offer all services related to income tax regulation.
What Are a Tax Consultant's Responsibilities?
- Tax Return Preparation
- Calculate Taxes Due
- Conduct Client Interviews/Collect Information
- Embrace Technology
- Provide Clients with Information
- Be familiar with tax rules and regulations.
