E-verification of ITR: Dos and Dont’s

Gone are the days of filing of paper returns of income. It is the age of electronic filing or e-filing which is the process of filing your return of income using the internet, by registering yourself to the income tax website or even with the help of various tax filing platforms.

This facility was introduced in the year 2004, initially on a voluntary usage basis. Having undergone modifications over a period of time to make it more taxpayer friendly and also to assist the tax authorities have access to requisite information from the taxpayer, e-filing now is mandatory for all classes of taxpayers barring exceptions.

If you are e-filing your return, do note that mere uploading your return will not complete the return filing process. An income tax return once filed, must be verified.

Significance of verification or e-verification of a return:

During the time when paper returns were being filed, it was a mandate for the taxpayer to verify the return by affixing his signature on it declaring that he has made correct and complete disclosure of all information in the return to the best of his knowledge. Such verification gives an authenticity to the document.

Subsequently, when e-filing was introduced, the process of verification required taxpayers to sign and send the ITR V(return filing acknowledgement) to CPC within 120 days of return filing. With time, in an effort to further simplify the verification process, the government has notified new modes via which taxpayers may electronically file and verify their returns too. Electronic verification of return is called e-verification.

Doing an e-verification, treated on par with signing a return, renders authenticity to the return filed and hence assumes tremendous significance.

Your return can be verified by generating an Electronic Verification Code (EVC) which is a 10 digit alphanumeric code and is unique to a PAN.

Let’s take a look at the different modes of e-verification and aspects to be taken care for such e-verification under
each such mode:

Netbanking

For e-verification using net banking, make sure your bank is authorised by the income tax department for providing such facilities.

Proceeding further, for verification of return form using netbanking, login to your netbanking account using your net banking login credentials. There is a tab related to income tax filing on the home page. On selecting the e-verify option, the page will be redirected to the government e-filing portal. Clicking on my account on the e-filing page will generate the EVC which will be sent to your registered email ID and registered mobile number. Using the EVC you may e-verify your income tax return.

Government e-Filing Portal

In case: Your income is below Rs 5,00,000; and you do not have a refund, you must opt for the government portal for e-verification where the EVC would be sent to your registered email ID and mobile number.

You need not trouble yourself by getting into the process of linking your Aadhaar with mobile number or obtaining net banking credentials etc.

Bank Account Details

First and foremost, make sure your bank provides this facility. Secondly, once you confirm this, you must pre-validate your bank account on the government e-filing portal to avail yourself of this method of e-verification. Bank account details which you will need to provide for validation will include bank name, account number, IFSC code and mobile number. Validation will only be successful if your PAN details match your bank account details.

Demat Account

If you are opting for this mode of verification, you need to pre-validate your Demat account on the filing portal. You will be required to select your depository and enter both mobile number and email id. Validation is considered successful when the details provided by you are confirmed by the depository.

On successful validation you may use this mode for generation of EVC.

Adhaar Card OTP

For this mode of verification, do ensure to link your Aadhaar with the mobile number registered on the income tax portal.

Click on the option “generate Aadhaar OTP to e-Verify my return”. A One-Time Password will be sent to the registered mobile number and will be valid only for 10 minutes. Enter the OTP for verification of your return. On successful validation, the return is verified and you may download the acknowledgement for the same.

(The writer is Founder and CEO of ClearTax)