ITR Verification Time Limit Missed: You May Be Liable To Pay Up To Rs. 5000 Penalty

As the time line for ITR verification has been reduced from the earlier 120 days to now 30 days from the date of ITR filing, you may end up paying up to Rs. 5000 penalty in case you miss the ITR verification deadline.

According to the latest CBDT circular released on July 29, 2022, the new rule in relation to the ITR verification shall be effective from August 1, 2022. Further the circular clarified that the said condition or the reduced time-limit per se ITR verification shall apply to ITRs filed on or after August 1, 2022. So, for taxpayers who have filed the ITR on or before July 31, 2022, the ITR verification can be done within 120 days from the date of filing ITR.

ITR verification is the step which completes the ITR filing process and in case if it is not done within the stipulated time then the ITR shall be deemed invalid.

What shall happen if the ITR is verified after the stipulated limit of 30 days?

As per the circular by the CBDT, in case the taxpayers upon filing return on or after August 1, 2022, does not adheres to the ITR verification time limit then in such a case the ITR verification or ITR V submission date shall be taken as the date of the filing the ITR. Additionally, as per the Income Tax Act, 1961 all of the consequences in relation to late filing of ITR shall apply including penalty implications.

Now, there can be cases in relation to ITR filing and verification that is discussed below:

You file your return for Fy22 before the due date of July 31, 2022 but fail to comply with the e-verification timeline

Now in case you miss the ITR verification timeline i.e. fail to complete the verification within 120 days from the ITR filing date then in such a case you have the option to apply for condonation of the delay to the tax department. Now post this application, either the tax dept. can accept or reject your request. If your request is accepted you may well e-verify your ITR and in case the same is rejected your filed ITR shall be treated as invalid and you will be required to file it again as a belated ITR. For the belated ITR, a penalty of up to Rs. 5000 shall be payable. Remember here the new e-verification time limit of 30 days has to be adhered to.

Supposing you have missed the ITR filing due date of July 31, 2022 and are filing belated return

In such a condition the late fee shall be applicable in any case. So, even if you miss the ITR verification time line which is 30 days, you will not have to pay additionally for missing the ITR verification time limit.

If your accounts are to be audited for ITR filing

For such taxpayers the due date to file the ITR is September 30, 2022 and the timeline for ITR verification shall be 30 days from the ITR filing date. Now in an event when you don't adhere to the ITR verification timeline then the ITR verification date shall be taken as the date of filing ITR. Consequently, if the normal due date (of filing ITR i.e. Sept 30) applicable to you, is past when you verify your ITR then you would have to pay the fees applicable to belated ITR.