The income tax department has offered a one-time relaxation for verification of returns filed electronically in the last five years that have been pending for want of valid ITR-V forms.
The Central Board of Direct Taxes (CBDT) has allowed for returns of all years from AY 2015-16 till AY 2019-20, to be signed and sent to CPC, Bengaluru either physically or electronically, by September 30.
It has directed that these returns should be processed by December 31, 2020, as per a circular dated July 13.
“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 the tax return by the taxpayer concerned after declaring the return Non-est,” the Board said.
Experts said that the move will help taxpayers that have filed returns but have not got refunds due to non-completion of verification process.
“This is a welcome measure as practically we have seen several cases where there were legacy issues in terms of non-receipt of ITR V. Also, considering the consequences of non-filing, this was a much needed relief,” said Amit Maheshwari, tax partner at AKM Global.
It can also benefit a large number of taxpayers, mostly being individual taxpayers, who could not verify their past ITRs inadvertently due to lack of knowledge of prescribed procedure or otherwise.
“This order provides a good opportunity to them for regularising their past ITRs and not only solve the issue of past non-compliance but also receive past pending refunds stuck due to this procedural lapse,” said Shailesh Kumar, partner at Nangia & Co LLP.
Source : Times of India