Verification Time Limit Of E-filed Income Tax Returns Reduced From 120 Days To 30 Days

The Central Board of Direct Taxes (CBDT), on July 27 announced in a notification "The time limit for verification of electronically filed Income Tax returns (ITR) is reduced from 120 days to 30 days for returns filed on or after August 1, 2022." However, taxpayers who had filed their income tax returns up to July 31, remain 120 days from the date of submission of ITR. The Indian Income Tax Department processes the returns when it is verified electronically or by sending ITR-V to the department.

CBDT added, that in case, the income tax returns filed are verified before the time limit of 30 days, the return date was filed, will be considered as the date of furnishing income tax returns. In addition to that, in case the income tax returns filed are verified beyond 30 days, the income tax returns verification date will be considered as the date of furnishing the income tax returns, and the taxpayers will have to face the consequences for late filing.

In case, the income tax returns are submitted but not verified within 30 days of the ITR filing date, for returns filed electronically on or after August 1, 2022, a late filing charge of up to Rs. 5,000 or Rs. 1,000 (whichever is applicable). Additionally, 1% interest per month or part of the month on outstanding tax as of August 1, 2022, if any will be charged. The interest rate will be calculated from August 1, 2022, to the date of verification. However, the income tax returns submitted but not verified within 120 days of the ITR filing date, for up to July 31, 2022, no late free will be charged. One can e-verify the income tax returns online on the Income Tax e-filing portal.