The income tax department has introduced a new functionality on its website- ‘Discard ITR’.
This new feature will allow taxpayers to discard their previously filed but unverified Income Tax Returns (ITR).
Starting from Assessment Year 2023-24, this new ‘Discard ITR’ functionality, provides users with the ability to discard original, belated, or revised ITR, expanding the scope for revision beyond just errors or omissions.
– Opting to discard the ITR is equivalent to non-filing of the return.
– Following the discard, a new ITR can be submitted.
However, if the fresh ITR is filed after the due date, it will incur late fees and other associated consequences.
– Once the discard option is exercised, it cannot be reversed.
Hence, use this option cautiously.
– The discard feature is available until the ITR filing deadline, i.e., until December 31 following the end of the financial year.
Hence, timely action is advised.
The tax department has released FAQs to address common queries on Discard ITR Option. Here is all you need to know about the new functionality on the income tax website that allows taxpayers to discard their unverified Income Tax Returns (ITR).
1)Taxpayers can avail of the option of “Discard” for the ITRs being filed u/s 139(1) /139(4) / 139(5) if they do not want to verify it.
2)However, if the “ITR filed u/s 139(1)” is discarded and the subsequent return is filed after the due date u/s 139(1), it would attract implications of belated return like 234F, etc.,
3) To access the ‘Discard’ option, users can follow the specified pathway on the income tax website. On the income tax portal, users can find the Discard option www.incometax.gov.in → Login → e-File → Income Tax Return → e-Verify ITR → “Discard”
4) Users can avail of this option only if the ITR status is “unverified” / “Pending for verification”.
5) Users can utilize the discard option repeatedly as long as the ITR status remains unverified or pending verification.
6) The feature is available for AY24 onwards. Once an ITR is discarded.
7) This option will be available only till the time limit specified for filing ITR u/s 139(1)/139(4) /139(5) (i.e., 31st December of respective AY as of now).
8) Once an ITR is discarded, it cannot be reinstated, making the action irreversible and essentially disclaiming the filing of the ITR.
Meanwhile, a record number of over 7.85 crore Income Tax Returns were filed till October 31 this year, said the Central Board of Direct Taxes (CBDT). According to the official release, October 31 was the due date for filing ITRs (other than ITR-7) for taxpayers not having any international or specified domestic transactions.
