6 ways to verify your income tax return


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With less than 10 days left to the deadline of July 31 for filing income tax returns (ITR), most people have started filing their ITR. An ITR after being filed has to be verified by the assessee.

As per the existing tax laws, a return filed by the taxpayer is not valid until it is verified as filed by the concerned assessee. A taxpayer can verify his/her return either electronically using E-Verification Code (EVC) using any one of multiple options or physically.

In case of e-filing taxpayers have the option to e-verify their respective returns at the time of uploading or after uploading. In case of an already-uploaded return, taxpayers can e-verify the same by clicking on the “e-Verify Return” option under the ‘My Account’ tab after logging into the e-filing website. Physical verification method can be used only after filing the return.

Under the ‘e-verify return’ option, a taxpayer will be shown three alternatives to verify their returns.

  1. I already have an EVC to e-verify my return.
  2. I do not have an EVC and I would like to generate EVC to verify my return.
  3. To verify your returns using Aadhaar OT

If you’re using Aadhaar OTP method, your mobile number must be linked to your Aadhaar. In this process a, OTP is generated and sent to your registered mobile number. Enter the OTP in the text box provided and click on submit. Success page will be displayed. It is important to remember that Aadhaar OTP is valid for 30 minutes only.

If you do not have EVC or your mobile number is not linked to aadhaar, then you can choose option 2 mentioned above. EVC can be generated by clicking on ‘Generate EVC’ option under ‘My Account Tab’. Four options to verify your ITR will appear. An Individual can choose any of the following method to verify it.

Using Electronic methods
You can use any one of the following four methods to verify your ITR electronically apart from Aadhaar OTP. Once you have verify it.

Using Electronic methods
You can use any one of the following four methods to verify your ITR electronically apart from Aadhaar OTP. Once you have verified it electronically you are not required to send the physical ITR-V copy to Bengaluru.

(a) Using One Time Password (OTP): You can verify your ITR by receiving an OTP on your registered mobile number and e-mail ID. OTP is a 10 digit alphanumeric code which can be generated through the income tax department’s e-Filing portal and is valid for 72 hours.

This OTP can be used only if your gross Income minus deduction is less than or equal to Rs 5 lakh. And/or, refund/demand is less than or equal to 100. This is first option to that appears under the ‘Generate EVC’ option. Click on ‘Generate e-filing OTP’. The OTP will be you’re your email id.

(b) Generating EVC using net-banking: You can also verify your return by using the net-banking facility of your bank account. Log-in to your net banking account and click on tab related to income tax filing. Select the e-verify option and you will be redirected to e-filing website.

Once logged in to the income tax e-filing website, click on the ‘My Account’ to generate the EVC. A 10-digit alpha-numeric code will be sent to your email and mobile number which is valid for 72 hours. Now, click on ‘e-verify’ option in ‘My Account’ tab to verify your returns using option 1 ‘I have EVC already’.

(c) Receiving EVC by using bank account based validation system: To use this method you must first pre-validate your bank account. You can pre-validate your bank account through the profile settings menu in your e-filing account. You will be required to enter details such as bank name, account number, IFSC and mobile number.

Pre-validation will be successfully completed only if your PAN and name match with bank account records. You must enter the mobile number which is linked to that bank account. Once these details are confirmed and validated by the bank then only you can generate EVC using this option. You will receive the code on the mobile number mentioned by you. Currently, only 12 banks are providing this facility. You must ensure that your bank is in the list before using this option. No change of mobile number or email as mentioned above will be permissible without revalidation of the bank.

(d) Verifying returns through Demat Account Number: This method is similar to bank account based validation. This method was launched earlier but has become functionally usable starting from this assessment year. To use this method for verifying your tax returns, your must also first validate your Demat account in the profile settings menu.

You will be required to select your depository and enter both mobile number and email id. Once the details (PAN, mobile number and email id) mentioned by you is confirmed and validated by the depository then you can use this option to generate the code. Here too, no change of mobile number or email id will be permitted without revalidation with the depository.

Using Physical Method (by sending ITR-V/Acknowledgement receipt)
If the taxpayer is not able to e-verify his return because of any reason or is not comfortable in using the electronic verification mode, then he/she can download the ITR-V also known as acknowledgement receipt. He needs to sign it and send it to CPC through post. This ITR-V should reach CPC within 120 days from the date of upload of the return for the return to be treated as valid.

  1. ITR-V is a one-page document which you need to sign in blue ink and send via ordinary post or speed post. You cannot courier the ITR-V.
  2. ITR-V is a password protected document which can be downloaded from your account on the e-filing website under the ‘View Returns/Form’ on the ‘Dashboard’. This ITR-V is auto-generated after you successfully upload/e-file your income tax return. Password to open ITR-V is your PAN number in lower letters along with your date of birth (DOB). If your PAN is “AAAPA1111F” and DOB is 01/01/1975, then your password will be “aaapa1111f01011975”.
  3. You are not required to send any supporting document along with the ITR-V. Just send the one page signed ITR-V.
  4. When your duly signed ITR-V is received and entered in the records at CPC, you will receive an email on your registered email ID that the ITR-V has been received and your return has been verified. Processing of your return will only start after verification.
  5. Address of CPC Bangalore for speed post: ‘CPC, Post Box No – 1, Electronic City Post Office, Bangalore – 560100, Karnataka, India’.

Note: Not all assessee can use the e-verification option to verify their returns. Some assesses are required to verify their returns by using the ‘Digital Signature Certificate (DSC)’. Such assesses are the individuals or HUF using ITR 3 for the FY 2016-17 (ITR 4 for the FY 2015-16) to file their tax returns and whose accounts are required to be audited under section 44AB. Once returns are filed using DSC method, they are not required for further verification as they are digitally signed by the taxpayer.

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Middle class can breathe bit easy as tax rate halved


news24in7(IANS) In a major relief to the tax-burdened middle-class people, Finance Minister Arun Jaitley on Wednesday proposed to halve the income tax to five per cent for those earning between Rs 250,000 and Rs 500,000 per annum.

Presenting the 2017-18 Budget in the Lok Sabha, Jaitley said he proposes to halve the income tax for persons earning between Rs 2.5 lakh-Rs 5 lakh from the current 10 per cent.

“This will reduce the tax liability of all persons with incomes below Rs 500,000 either to zero (with rebate) or 50 per cent of their existing liability,” Jaitley said.

The existing benefit of rebate available to the same group of beneficiaries is being reduced to Rs 2,500 that is available only to assessees up to an annual income of Rs 350,000.

According to him, the combined effect is that there will be nil tax liability for people with incomes of up to Rs 300,000 per annum.

The tax liability will only be Rs 2,500 for people with incomes between Rs 300,000 and Rs 350,000.

If the limit of Rs 150,000 under Section 80C for investment is used fully, the tax would be zero for people with incomes of Rs 450,000.

While the tax liability of people with incomes of up to Rs 500,000 is being reduced to half, all other categories of taxpayers in the subsequent slabs will also get a uniform benefit of Rs 12,500 per person.

“The total amount of tax foregone on account of this measure is Rs 15,500 crore,” Jaitley said.

In an effort to somewhat make good the loss of revenue, Jaitley proposes to levy a surcharge of 10 per cent of tax payable on individuals whose annual taxable income is between Rs 50 lakh and Rs 1 crore.

The surcharge will generate additional revenue of Rs 2,500 crore.

The existing surcharge of 15 per cent of the tax on people earning more than Rs 1 crore will continue.

For those with incomes of up to Rs 500,000 — other than business income — Jaitley said a single-page income tax return form will be introduced.

“It is a populist budget for the middle class. The budget proposes to give relief to the middle class while taxing the super-rich,” Neha Malhotra, Executive Director, Nangia & Co., an international tax advisory and accounting firm, told IANS.

“It was a legitimate expectation post-demonetisation that the personal income tax rate will be reduced to soften the tax hit on the pockets of the individuals,” she added.

According to Malhotra, immovable property owners have been relieved by lowering the holding period for availing lower rate of long-term capital gains tax from three years to two years.

“Also, the base year for computing capital indexation benefit has been changed from existing April 1, 1981, to April 1, 2001. This move will give significant relief to the taxpayers earning profits from sale of house property and will encourage investments in the real estate sector,” she said.

Another woe of the taxpayers is that provisions applicable on dishonoured cheque under Section 138 of the Negotiable Instrument Act are ineffective.

New effective way to tackle the issue of bounced cheque is a welcome move which shall relieve those facing hardship on these fronts, she added.

–IANS