An overview of new ITR-V and E-verification notification by the CBDT :
The Central Board of Direct Taxes has always been coming with new notifications and detailed circulars to make it rather easier for the taxpayers or income tax filers to adhere to different return filing guidelines and statutory pronouncements. In this context, the CBDT has come up with an all-new notification pertaining to sending the ITR-V to the Centralized Processing Centre, Bangalore, or getting the ITR E-Verification executed using the EVC or OTP-based arrangement. This new CBDT notification aims to streamline the ITR verification process and thus aims to replace the erstwhile window of filing the ITR-V/E-Verification arrangement w.e.f. August 01, 2022.
This discussion is prepared and thus aims to explain all relevant statutory points pertaining to the sending of ITR-V or getting the E-Verification done in detail with the objective of making every relevant provision clear.
The Central Board of Direct Taxes (CBDT) has come with a notification on July 29, 2022, that restricts the time limit for sending ITR-V to the Centralized Processing Centre to 30 days with a view to speeding up the process of Income Tax Return Processing. Earlier, the income tax filers opting to send the ITR-V in paper form to the CPC were provided with a substantially large time span of 120 days but to expedite the processing of income tax returns, the CBDT has decided to reduce the earlier 120-day window to just 30 days.
This notification will start taking effect on August 01, 2022. This gives rise to a couple of scenarios as regards the application of this CBDT notification. Logically, there are two cases pertaining to all those who opt to send ITR-V to CPC, Bangalore instead of resorting to the OTP verification route.
Case 1 :- When ITR has been transmitted electronically before this CBDT notification takes effect
In the context of all the income tax returns that have been filed before August 01, 2022, the CBDT has clarified that the shorter ITR-V filing window of 30 days will not apply which may be considered a kind of a breather for all those income tax filers who have already submitted their income tax return by July 31, 2022, as they can send the paper form ITR-V to CPC Bangalore within the earlier time limit of 120 days.
Case 2 :- When ITR has been filed electronically after this CBDT notification takes effect
Another case that arises in the context of the new ITR-V filing deadline is related to the income tax filers who file income tax returns from August 01, 2022, onwards. If people file their income tax returns on or after August 01, 2022, then the new time limit of sending the ITR-V to CPC will now be reduced to just 30 days. The implication of such latest development will be that people who had to file the income tax return by July 31, 2022, will now have to file the belated returns under section 139(4) by paying the late fees under section 234F along with sticking to the stringent requirement of sending their respective ITR-V to the CPC Bangalore within 30 days of filing their income tax return electronically.
In the context of sending the ITR-V to the CPC Bangalore, a couple of points are noteworthy:
The date of dispatch of the ITR-V in paper form as reflected through the Speed Post receipt will be considered to judge whether the ITR-V has been sent within or beyond the 30-day time limit.
If the income tax filers who have filed their income tax returns electronically and have sent ITR-V pertaining to their respective income tax returns after the 30-day window getting expired, then the date of ITR-V transmission will be considered as the date of furnishing the income tax return, and consequently the other relevant provisions pertaining to the filing of income tax return will apply accordingly. This also gives rise to a simple consequence that the income tax filer will be held to have not filed his income tax return in actuality.
Position of the ITR verification notification pertaining to the income tax returns that have been filed electronically and have been e-verified by means of the OTP verification scheme.A simple reading of the latest CBDT notification pertaining to the e-verification of the income tax return suggests that the reduced time limit of e-verifying the ITR within 30 days of electronically filing the ITR will apply here as well.
Consequently, it makes sense that the CBDT notification setting a shorter time span for ITR verification of 30 days also covers in its ambit the ITRs that are e-verified using the EVC or OTP-based verification arrangement. Thus the income tax return filers who opt to verify their income tax return using the OTP mode will now have to get their income tax return verified within the time span of 30 days from the date of having filed their income tax return electronically.
The real consequence of not being able to actually execute the ITR e-verification will render the income tax return null and void, and the Income Tax Department will not consider the ITR for further processing. Also, in case the 30-day time limit for getting the income tax returns e-verified gets breached, and then the income tax filer gets the e-verification done, then the date of e-verification will be considered as the date of furnishing the income tax return, thereby making a bigger headroom for the Income Tax Department to apply other relevant provisions related to filing and verifying the income tax return.