Good News for Assessee’s whose Income Tax Returns are in default for last 4 Assessment Years due to pending verification

The CBDT on 13 July 2020, has extended a one-time relaxation for verification of e-filed income tax returns for assessment years 2015-16 to 2019-20.

A circular by CBDT on Monday said that that a large number of electronically filed ITR’s still remain pending with the Tax Department for want of receipt of ITR-V at CPC, Bengaluru from the concerned taxpayers.

CBDT has permitted verification of such returns by EVC or by sending a signed physical copy of ITR-V to CPC, Bengaluru. The due date for completing the verification process is 30 September, 2020.

As per law, all the unverified returns are invalid and thus consequences of non-filing the ITR-V within the time is significant. Thereafter, all the consequences for non-filing of ITR is applicable to all such returns.

The circular, further, clarified that “this relaxation shall not apply in those cases, where during the intervening period, Income Tax Department has already taken recourse to any other measure as specified in the Act for ensuring filing of income tax returns by the taxpayer concerned after declaring the return”.

CBDT also relaxes the time-frame for processing such returns by 31.12.2020 and intimation of processing of such returns shall be sent to the taxpayer. In refund cases, while determining the interest, provision of section 244A (2) of the Act would apply.

This provides a good opportunity for all the taxpayers to complete their defaults in the filing of ITR due to pending verification.

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