Discarding of Income Tax Return
Understanding of new feature "Discarding of Income Tax Return"
Understanding the "Discard" option for Income Tax Returns (ITRs) is essential for taxpayers to manage their tax filings effectively. This feature, recently introduced by the Income Tax Department on efiling portal, offers flexibility but comes with important considerations. It's vital for users to know when and how to use this option to avoid potential complications.
Filed Original ITR u/s 139(1) but not yet verified
• The user can avail of the option of “Discard” for the ITRs being filed u/s 139(1) /139(4) / 139(5) if they do not want to verify them.
• The user is provided with the facility to file an ITR afresh after discarding the previous unverified ITR.
• However, if the “ITR filed u/s 139(1)” is Discarded and the subsequent return is filed after the due date u/s 139(1), it would treated as belated return and the tax payer will have to face late fees u/s 234F.
• Thus, it is advised to check whether the due date for filing the return u/s 139(1) is available or not before discarding any previously filed return.
ITR was discarded by mistake. Is it possible to reverse it?
• If ITR is discarded once, it can’t be reversed. Please be vigilant while availing Discarding option. If an ITR is Discarded, it means that, such ITR is not filed at all.
Is it mandatory to file a subsequent ITR if the user “Discarded” previous unverified ITR ?
A user, who has uploaded the return data earlier, but has made use of the facility to discard such unverified return is expected to file subsequent ITR later on, as it is expected that he is liable to file the return of income by way of his earlier action.
If ITR V sent to CPC and it is in transit and not yet reached CPC. But user don’t want to verify the ITR. Can we still avail “Discard” option?
User shall not discard such returns, where the ITR-V has already been sent to CPC. There is an undertaking to this effect before discarding the return.
Discard option availability:
• User can avail this option only if the ITR status is “unverified” / “Pending for verification”.
• There is no restriction on availing this option multiple times. Precondition is “ITR status” is “Unverified” / “Pending for verification”.
• User can avail this option only from AY 2023-24 onwards for the respective ITR. This option will be available only till time limit specified for filing ITR u/s 139(1)/139(4) /139(5) (i.e., 31st December of respective AY as of now).
Which section do user need to select in subsequent filling?
• If user discards the Original ITR filed u/s 139(1) for which due date u/s 139(1) is passed, they are required to select 139(4) while filing subsequent return.
• As there is no prior valid return exist, date of Original ITR / Acknowledgement number if Original ITR fields are not applicable.
• Further, if user wants to file a revised return in the future, he needs to provide details of “Original filing date” and “Acknowledgement number” of the valid ITR.
Discard option in below path:
www.incometax.gov.in → Login → e-File → Income Tax Return → e-Verify ITR → “Discard”
In summary, the "Discard" option is a significant tool for correcting or updating ITRs, but it must be used with caution. Taxpayers should be aware of the implications of discarding an ITR, especially regarding deadlines and verification status. By staying informed and careful, taxpayers can ensure they comply with tax laws while managing their filings efficiently.
You can refer FAQs from below link:
https://www.incometax.gov.in/iec/foportal/help/discard-return/faqs
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