CBDT Grants Relaxation For Verification of ITRs e-filed For The AY 2020-21

The Central Board of Direct Taxes (CBDT) has granted a one-time relaxation for the verification of all e-filed income tax returns for Assessment Year 2020-21 that are still pending for verification and processing. CBDT has said on Tuesday in an official statement that "it has been brought to the notice of Central Board of Direct Taxes ('Board') that large number of electronically filed ITRs for the Assessment Year 2020- 21 still remain pending with the Income-tax Department for want of receipt of a valid ITR-V Form at CPC, Bengaluru or pending e-Verification from the taxpayers concerned. In law, consequences of failure to verify the ITR within the time allowed is significant as such an ITR is/can be declared non-est."

In this regard, the Board has decided to grant a one-time extension until February 28, 2022 for submitting ITR-V/e-Verification in order to address taxpayers' concerns regarding non-verification of ITRs for the Assessment Year 2020-21.

CBDT has said in an official statement dated 28th December 2021 that "In this context, it has been decided by the Board to provide one-time relaxation for submission of ITR-V/e-Verification for resolving the grievances of the taxpayers associated with non-verification of ITRs for the Assessment Year 2020-21 and to regularise such ITRs which have either become non-est or have remained pending with Income-tax Department for want of receipt of respective ITR-V Form or pending e-Verification. Therefore, in respect of alllTRs for Assessment Year, 2020-21 which were uploaded electronically by the taxpayers within the time allowed under section 139 of the Act and which have remained incomplete due to nonsubmission of ITR-V Form pending e-Verification, the Board, in the exercise of its powers under section 119(2)(a) of the Act, hereby permits verification of such returns either by sending a duly signed physical copy of ITR-V to CPC, Bengaluru through speed post or through EVC/OTP modes as listed in para 1 above. Such verification process must be completed by 28.02.2022."

The Central Board of Direct Taxes (CBDT) has also 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 a tax return by the taxpayer concerned after declaring the return as non-est. Further, Board also relaxes the time-frame for issuing the intimation as provided in the second provision to sub-section (1) of Section 143 of the Act and directs that such returns shall be processed by 30.06.2022 and intimation of processing of such returns shall be sent to the taxpayer concerned as per the laid down procedure. In refund cases, while determining the interest, provision of section 244A (2) of the Act would apply. It is clarified that this relaxation would be applicable to all such returns which are verified during the extended period."

In the case of an Income-tax Return (lTR) that is submitted electronically without a digital signature, the taxpayer must validate it using one of the following ways within 120 days of the date of filing the ITR:-
i. Through Aadhaar OTP
ii. By logging into an e-filing account through net banking
iii. EVC through Bank Account Number
iv. EVC through Demat Account Number
v. EVC through Bank ATM vi. By sending a duly signed physical copy of ITR-V through post to the CPC, Bengaluru.

If the taxpayer does not have her or his return regularised by providing a valid verification (either ITR-V or EVC/OTP) before February 28, 2022, the law's provisions for non-filing the return may apply.