An income tax return is a legally mandated record that reports your income, earnings, losses, deductions, and information about any tax refund or due. While submitting an ITR may appear difficult, modern innovations like as e-filing websites and Demat Accounts have made the process much simpler. Use these resources to make filing your taxes easier.
Verification is the last step in completing your income tax return (ITR). The ITR would have been declared invalid if e-verification had not been finished within 120 days. But as of August 1, 2022, the CBDT reduced this period to 30 days from the date of return filing.
The new rule will only apply to returns submitted online. The easiest and quickest way is e-verification. You can still verify your ITR by sending a physical copy of the ITR-V if you would like not to use e-verification.
How to Use a Demat Account to e-Verify Your Income Tax Return
- Step 1: Start by visiting the e-filing portal’s homepage and selecting “e-Verify Return.”
- Step 2: Select “EVC (Electronic Verification Code) through Demat account” next, then click “Continue” to move on.
- Step 3: Fill in the EVC that you received and select “e-Verify.”
- Step 4: Your return will be successfully validated.
Note: Only once the additional Demat account has been verified and EVC enabled will the option for EVC through a Demat Account be generated. Only if your email address or phone number is validated by NSDL/CSDL will you receive the EVC on it.
Verifying Your Income Tax Return Is Important For Several Reasons:
- Compliance: It guarantees compliance with government-mandated tax rules and regulations.
- Validity: The tax authorities consider an ITR that has been confirmed as valid, meaning that your tax filing procedure is finished.
- Processing: The tax department processes verified returns more quickly, which results in quicker refunds or the settlement of tax liabilities.
- Avoid Penalties: The tax agency can give fines or notifications if you fail to validate your ITR within the allotted period.
