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Introduction: 

Filing annual tax returns is an important responsibility for all taxpayers. Not only does this important work bring great relief, but it also lightens a huge burden for many. However,  process does not end there. Taxpayers need to e-verify their tax returns again to complete the filing process.

It is important not to overlook the important steps of ITR verification. Below is a detailed description of the e-verification requirements and the various options for taxpayers to complete this process.

What is E-verification of ITR: 

ITR verification is a way of confirming that the tax return was filed by the taxpayer and not by anyone else, which acts as an important step to reduce the chances of filing an erroneous or fraudulent income tax return reduce This e-verification must be completed within 120 days of the date of filing of tax returns. Till the taxpayer completes the e-verification process, the Income Tax Department refrains from initiating the ITR. Successful e-verification of the ITR results in an acknowledgment known as ITR-V, which is a confirmation that tax returns have been completed for the relevant financial year

Need for ITR verification:

E-verification of income tax return filing is a mandatory step for all taxpayers, with various consequences for not doing so. There are several special points that highlight the importance of completing the e-verification process for ITR.

• Unless e-verification is completed, tax returns remain incomplete.
• If the assessee or the taxpayer fails to do the e-verification within 120 days of filing the tax return, it is treated as non-filing in time under Section 139 of the Income Tax Return Regulations. Such unacknowledged returns shall be treated as if filed at any time, and may result in the penalty mentioned in the relevant sections of the Income Tax Act, 1961
• The assessment process of the ITR will commence only upon receipt of proper e-verification from the assessee.
• Failure to maintain the tax return in e-very will delay the processing of the ITR and consequently delay any possible refund to the taxpayer.

Methods to E-Verify Tax Return online: 

There are various ways to process your ITR certificate. To initiate the process, you need to login to your account through the Income Tax Portal and select the e-Verify Return option.

e-Verify Through Aadhaar OTP:

• Login  your income tax e-filing account.
• Go to ‘e-file’ tab, then select ‘Income Tax Returns’ followed by ‘e-Verify Return’.
• If you don’t have Aadhaar OTP, select ‘I want to verify using OTP on mobile number registered with Aadhaar’ option.
• Make sure your mobile number is linked to your Aadhaar number and your PAN is linked to your Aadhaar number.
• Select the check box to confirm the validity of your Aadhaar details, then click on ‘Generate Aadhaar OTP’.
• Enter the 6-digit OTP received on your registered mobile number, then click on the ‘Validate’ button.
• Your ITR will verified upon successful submission. Please note that the OTP is only valid for 15 minutes.

e-Verification Using Digital Signature Certificate :

• If your account books are being audited, be sure to use a digital signature certificate (DSC) to e-verify returns.
• On the e-verification page, select ‘I want to e-verify with a digital signature certificate (DSC)’.
• Download and install the ’emSigner utility’.
• Once you have installed the emSigner utility, select ‘I have downloaded and installed the emSigner utility’ and click ‘Continue’.
• Please provide ‘provider’, ‘certificate’ and ‘provider password’ on the Data Sign page.
• Just click the ‘Sign’ button to complete the process.
• Upon completion, a success message is displayed with the Transaction ID. Be sure to keep a record of the Transaction ID for future reference.
• You will also receive a confirmation message through the email address and mobile number registered in the e-filing portal.

e-Verification Through Bank Account: 

• Below are the steps for e-verification using the taxpayer’s bank account number.
• Go to the e-Filing portal and login to your account, then select “e-verify return”.
• Select “EVC – By Bank Account Number”.
• If the bank account number is not validated, proceed to pre-validate it.
• Click on the tab labeled ‘Prevalidate your bank account’.
• Please provide required banking information.
• Click on ‘Prevalidate’.
• If you are successful in verifying the bank account details, click on the e-verify link.
• The next step is e-verification using bank account details by generating an OTP.
• Enter the OTP received on the e-filing portal.
• Once the e-verification is done, the same will be received and validated on the registered mobile number and email address of the taxpayer.

e-Verify Through Net Banking: 

• For e-verification using Net Banking Facility, ensure that your bank account is linked to an active Net Banking Facility.
• Select the ‘Through Net Banking’ option and then click ‘Continue’.
• Select your bank from the provided options and then click on ‘Continue’.
• View and accept the post, then click ‘Continue’ to continue.
• You will redirected to the login page of your bank’s Net Banking Portal.
• Please enter your net bank credentials to proceed.
• Look for the ‘e-verify your return’ option and select it.
• Once you have completed the verification process, you will be redirected to the e-filing portal. Now go to the relevant ITR form and click on ‘e-verify’.

Through Bank ATM: 

• Below are the steps for e-verification through bank ATM.
• The first step is to withdraw the ATM card at the slot provided.
• The user will need to provide the PIN to proceed with e-filing.
• The user will receive the EVC on the registered mobile number.
• The next step is to visit the e-filing portal and choose the option for e-verification of tax returns using bank ATMs.
• The user must enter the generated EVC in this portal.
• A successful e-verification receipt will be sent to the registered mobile number and email address of the taxpayer.

Through Demat account:

• Below are the steps for e-verification using Demat account.
• Go to the e-Filing portal and login to your account, then select “e-verify return”.
• Select “EVC – By Bank Account Number”.
• Pre-validate your Demat Account Number if it has not been validated before.
• After successfully validating the Demat account, click on the e-verify link.
• This provides an OTP that needs to be entered in the e-filing portal.
• The e-verification will be completed and the same will be received and verified on the registered mobile number and email address of the taxpayer.

How to verify the income tax return offline: 

• The offline mode of ITR verification is traditional and is less commonly used by taxpayers in recent times. Below are the steps involved in this process.
• The first step is to file the relevant ITR based on the identity of the accused and their income
• To file the ITR, one has to visit the official e-filing website and click on ‘Login’ at the top right corner of the home page. They then have to provide their valid user name (PAN) and password to access it.
• The next step after login is to click on the ‘View Returns/Forms’ tab.
• This process redirects the user to another page where they have to select ‘Income Tax Returns’ from the drop-down menu and click on ‘Submit’ to proceed.
• The following page will show the status of ITR filed for various assessment years. The assessee should select the corresponding assessment year pending review and click on ‘Acknowledgment Number’ corresponding to that year.
• On the next page you will find the option to download the redemption form. Once downloaded, you can view the file in the saved location.
• The acknowledgment must be printed and signed by the assessee.
• This signed copy should be submitted to the Department of Information Technology Office (CPC) in Bangalore by plain mail or registered post
• Once the ITR-V is received by the CPC, the assessee will receive a notification of the same through SMS to his registered mobile number.

Conclusion:

E-verification of tax returns may seem small but it is an important step in the tax process. Failure to comply with this important requirement may result in unnecessary complications and penalties for the taxpayer. The IT approach has dramatically simplified this process, reducing the burden on taxpayers and ensuring seamless and maximum compliance.