One-time Relaxation for Verification of Last 5 years “E-filed” Income Tax Returns

CBDT has noticed that a large number of electronically filed ITRs were pending for processing with IT Department because of non-furnishing of a valid ITR-V at CPC, Bengaluru from concerned taxpayers. CBDT, further, stated such returns can be treated non-existent (i.e. declaring such returns as ‘non-est’) to the IT department. Hence, CBDT has provided a one-time relaxation vide Circular No. 13/2020 dated 13th July, 2020, for verification of e-filed returns for AYs 2015-16 to 2019-20 that are pending due to non-filing of a valid ITR-V either by sending a physical copy of ITR-V to CPC, Bengaluru or through EVC/OTP modes by 30th Sept, 2020.

However, the above relaxation shall not apply in cases where during the above-mentioned period, the IT Department has already issued notice or taken any measures as provided in the Act for ensuring filing of tax returns after declaring such returns as invalid.

Further, the last date for issuing the intimations (containing comparison of computation as per taxpayer furnished in return and computation as per IT department) required u/s 143 after processing of above-mentioned returns has been extended to 31st Dec, 2020. Earlier, the due date for the same was 1 year from the end of the relevant AY.

Circular No. 13/2020

F. No. 225/59/2020/ITA-II
Government of India
Ministry of Finance
Department of Revenue
Central Board of Direct Taxes

New Delhi, dated the 13th of July, 2020

Subject: – One-time relaxation for Verification of tax-returns for the Assessment years 2015-16, 2016-17, 2017-18, 2018-19 and 2019-20 which are pending due to non-filing of ITR-V form and processing of such returns – reg.

In respect of an Income-tax Return (ITR) which is filed electronically without a digital signature, the taxpayer is required to verify it using any one of the following modes within the time limit of 120 days from date of uploading the ITR: –

i. Through Aadhaar OTP

ii. By logging into 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

2. In this regard, it has been brought to the notice of Central Board of Direct Taxes (`CBDT’) that a large number of electronically filed ITRs still remain pending with the Income-tax Department for want of receipt of a valid ITR-V Form at CPC, Bengaluru from the taxpayers In law, consequences of non-filing the ITR-V within the time allowed is significant as such a return is/can be declared Non-est in law, thereafter, all the consequences for non-filing a tax return, as specified in the Income-tax Act,1961 (Act) follow.

3. In this context, as a one-time measure for resolving the grievances of the taxpayers associated with non-filing of ITR-V for earlier Assessment Years and to regularize such returns which have either become Non-est or have remained pending due to non-filing/non-receipt of respective ITR-V Form, the CBDT, in exercise of powers under section 119 of the Act, in case  of returns for Assessment Years 2015-16, 2016-17, 2017-18, 2018-19 and 2019-20 which  were uploaded electronically by the taxpayer within the time allowed under section 139 of the Act and which have remained incomplete due to non-submission of ITR-V Form for  verification, 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 30.09.2020.

4. However, 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 tax return by the taxpayer concerned after declaring the return as Non-est.

5. Further, CBDT, also relaxes the time-frame for issuing the intimation as provided in second proviso to sub-section (1) of Section 143 of the Act and directs that such returns shall be processed by  31.12.2020  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.

6. In case the taxpayer concerned does not get his return regularized by furnishing a valid verification (either ITR-V or EVC/OTP) by 30.09.2020, necessary consequences as provided in law for non-filing the return may follow.

7. Hindi Version follows.

(Rajarajeswari R.)

Under Secretary (ITA.II), CBDT

Copy to: –

i. PS to FM/OSD to FM/PS to MoS(F)/OSD to MoS(F)

ii. PS to Secretary (Revenue)

iii. Chairman, CBDT & All Members, CBDT

iv. All Pr. CCsIT/ Pr. DGsIT

v. All Joint Secretaries/CsIT, CBDT

vi. C&AG

vii. CIT (M&TP), Official Spokesperson of CBDT for giving wide publicity

viii. 0/0 DGIT(Systems) for uploading on official income-tax website

ix. Addl. CIT (Database Cell) for uploading on the irsofficersonline website

(Rajarajeswari R.)

Under Secretary (ITA.II), CBDT