ITR verification time limit reduced from 120 to 30 days
The time limit for the e-verification or hard copy filing of the ITR-V (Income Tax Return-Verification), which is done after filing taxpayer returns, has been reduced from 120 days to 30 days, with effect from Monday (August 1), by the Income Tax Department. The department issued a notification on Friday (July 29), informing of the change in the time limit. Here are more details.
Why does this story matter?
The verification of an ITR concludes the process of filing the returns, and if it is not completed within the allotted period, the ITR is considered invalid. Earlier, three other significant changes in India's income tax rules came into effect on July 1. They are related to cryptocurrency investments, the linking of Aadhaar-PAN cards, and sales benefits received by doctors and social media influencers.
What did I-T Department's notification say?
"It has been decided that in respect of any electronic transmission of return data on or after the date of this notification comes into effect, the time limit for e-verification or submission of ITR-V shall now be 30 days from the date of transmitting/uploading the data of return electronically," the I-T Department's notification stated. It added the order would be effective from August 1.
More details regarding the development
Until now, the limit for e-verifying the ITR or mailing the ITR-V via post after filing an Income Tax Return (ITR) was 120 days from the uploading date of the ITR. However, the notification highlighted that if the ITR e-verification or physical ITR-V copy is mailed after the time limit of 30 days, the ITR will be considered late or past the due date.
Hard copy can be sent through 'speed post only'
Those who want to submit the ITR-V hard copy can mail it to the Centralised Processing Centre, Income Tax Department, Bengaluru-560500, Karnataka, through "speed post only." "The date of dispatch of speed post of duly verified ITR-V shall be considered for the purpose of determination of the 30 days period, from the date of transmitting the date of Income-tax return electronically," the notification said.
What are three new changes introduced in ITR rules?
As per the new income tax rule changes, the late fee for Aadhaar-PAN linking was increased. The tax deducted at source (TDS) rules for doctors and social media influencers were also changed, directing them to pay 10% on the benefits from sales/promotions. Also, cryptocurrency transactions will attract a 1% TDS charge. The government has also set limits on cash transactions to combat black money.
