ITR filed? Missing this post-filing step could mean no refund, more tax

Verifying your ITR within 30 days is mandatory. Skip it, and your return may be treated as invalid, leading to penalties, loss of refund, and other tax setbacks.

According to the latest directive from the Central Board of Direct Taxes (CBDT), taxpayers must verify their Income Tax Return (ITR) within 30 days of submission. If not, the return will be considered invalid, triggering penalties, delays, and loss of tax benefits. This reduced time limit, earlier 120 days, has been in effect since August 1, 2022.

 

Why e-verification matters

“Many taxpayers mistakenly assume that filing the return completes the process,” says Niyati Shah, chartered accountant, vertical head of personal tax at 1 Finance.

 

“But unless you verify your return, the Income Tax Department doesn’t treat it as filed at all,” she said.

 

“Verification acts as the official acknowledgement of your return. Without it, even a timely and accurate ITR gets invalidated, exposing the filer to penalties under Section 234F,” added Shefali Mundra, tax expert at ClearTax. 

Echoing this, Mrinal Mehta, chartered accountant, joint secretary of Bombay Chartered Accountants’ Society, explains, “If you verify after the 30-day window, the date of verification is treated as the filing date. This triggers all late-filing consequences like interest, penalty and loss of carry-forward of losses.”

 

The steep price of a simple mistake

In a recent case, a salaried individual, who forgot to verify his ITR, lost the ability to carry forward capital losses from equity trading.

 

“When he came to us two months later, his return had already been declared invalid,” Shah notes.

 

In another case, a taxpayer missed the 30-day deadline. “He faced a Rs 5,000 penalty, lost interest on his tax refund, and got pushed into the new tax regime, which led to higher taxes,” says Mundra.

 

Mrinal Mehta recalls a client who was overseas and couldn’t receive the OTP for e-verification. Despite later verifying the return, the delay meant it was treated as a belated return and the client forfeited significant capital loss carry-forward benefits.

 

Why do people forget to verify?

Experts list several reasons:

 

• Misunderstanding that filing is enough 
• Missing reminder emails/SMS from the IT department 
• OTP-related technical issues 
• Delays in sending the physical ITR-V form 
• No professional guidance during filing

 

What’s the easiest way to verify your ITR?

 

According to the CBDT, there are multiple methods of e-verification:

 

• Aadhaar OTP (most preferred by individuals) 
• Net banking login 
• Demat or bank account EVC 
• Digital Signature Certificate (for professionals and firms) 
• Bank ATM 
• Sending a signed ITR-V to CPC Bengaluru (physical mode)

“Aadhaar OTP is the most seamless option for individual taxpayers,” says Shah. “It’s instant and doesn’t need any login credentials apart from the OTP,” she adds.

 

“For non-corporates, Aadhaar OTP is the fastest. But for audited entities, DSC is a reliable digital option,” adds Mehta

 

To e-verify your ITR, visit: incometax.gov.in → How to e-Verify

 

Bottom line: Don’t delay, verify

With tighter timelines and digital oversight, experts urge taxpayers to complete verification immediately after filing. “It’s not a procedural formality, it’s a statutory safeguard,” says Shah. “Missing it could cost you more than just time.”