However, there is a catch! You can solely avail the “Discard” ITR possibility in case you have not verified your earnings tax return for the evaluation yr 2023-24.Let’s perceive this higher:
What is the “Discard” ITR possibility?
If you “discard” your tax return on the earnings tax return submitting web site, www.incometax.gov.in, it is going to be deleted from the information of the Income Tax Department eternally and there is no means of retrieving it by the taxpayer.
The technique of discarding your ITR is pretty easy: Go to the Income Tax web site (www.incometax.gov.in), Login and go to the e-filing possibility. Under that choose Income Tax Return after which e-verify ITR. Here you’ll get the choice to discard your return.
This new possibility can solely be exercised for Income Tax returns which have been filed on or after April 1, 2023. This means it is relevant for the monetary yr 2022-23 (Assessment yr 2023-24). As identified above, you possibly can solely discard your IR return if it is not verified (e-verification or by submit to the CPC). In case you’ve gotten despatched your ITR verification to CPC and it has not reached it, the discard possibility can nonetheless not be exercised.
Kuldip Kumar, Partner, Mainstay Tax Advisors welcomes the transfer stating, “It will benefit especially those taxpayers who, after submitting the return, realized an error or omission in the tax return. Instead of first e-verifying the tax return and then revising it, they can now simply “discard” the unverified tax return and file a fresh return.”
How is Discard ITR completely different from Revised ITR?
Before the Income Tax Department launched the Discard Income Tax Return possibility, a taxpayer needed to confirm the tax return after submitting it, even when they realized that an error had been made. It is solely after the verification of the ITR that one may go to the ITR portal to revise their tax return.
In case of discard ITR, the saved however not verified return, shall be utterly deleted from the Income Tax Department’s web site. So, from a taxpayer’s perspective it might entail submitting a contemporary return. This may have implications if the new return is filed after the unique due date of July 31 yearly since it might be handled as a belated return.
For instance, you file your earnings tax return on July 25, however don’t confirm it. You discard the return on August 10 after which file a new earnings tax return. This new return could be handled as a belated return and would invite penal penalties since it might be filed after the unique due date of July 31. However in case you have verified your ITR after which file a revised return after July 31, then no penal penalties are relevant.
Kuldip additionally cautions the taxpayers on the identical. “Taxpayers should carefully evaluate the “discard” option, particularly where they filed the return in July and choose to “discard” the unverified return in August. This is so because the return once discarded is considered as if the return has never been filed and thus, the fresh filing (after the discard) will attract a late filing fee of Rs 5,000 and taxpayer will not be able to carry forward any losses incurred during the year,” he tells TOI.
Here are some Frequently Asked Questions (FAQs) about the Discarded I-T returns:
- Can my ITR filed for AY 2023-24 be discarded if not verified?
Certainly! A consumer has the choice to “Discard” ITR filed underneath sections 139(1), 139(4), or 139(5) if it is not verified. This characteristic allows customers to file a contemporary ITR after discarding the earlier unverified one. However, discarding an “ITR filed u/s 139(1)” and subsequently submitting a return after the due date underneath the identical part would possibly result in implications resembling penalties outlined in part 234F, contemplating it a belated return. Hence, it is advisable to verify the availability of the due date for submitting the return underneath part 139(1) earlier than discarding any beforehand submitted return. - Can an ITR discarded by mistake be retrieved?
Unfortunately, as soon as an ITR is discarded, it can’t be reversed. Exercise warning when opting for the discarding possibility. Discarding an ITR implies that the return has not been filed at all. - Where can a consumer discover the “Discard” possibility on ITR web site?
You simply must observe the path: www.incometax.gov.in → Login → e-File → Income Tax Return → e-Verify ITR → “Discard” - If my unverified ITR has been discarded by me, is it obligatory for me to file an ITR?
A consumer who beforehand uploaded return knowledge however later selected to discard the unverified return is anticipated to file a subsequent ITR later. This motion aligns with the consumer’s accountability to file their earnings return based mostly on their earlier exercise. - If my ITR V has not reached CPC but, can I discard my return?
You ought to chorus from discarding returns for which the ITR-V has already been dispatched to CPC. Prior to discarding the return, an endeavor affirming this resolution is required. - Can the “Discard” IT return possibility be used greater than as soon as?
There’s no limitation on using this selection a number of instances, offered the “ITR status” stays “Unverified” or “Pending for verification.” - Can I avail the
Discard ITR possibility for a earlier evaluation yr (AY 2022-23)?
A taxpayer can solely avail this selection from Assessment Year 2023-24 onwards for the corresponding ITR. This alternative will stay accessible till the specified time restrict for submitting the ITR underneath sections 139(1), 139(4), or 139(5), which is presently the thirty first of December of the respective Assessment Year. - I filed my Original ITR on July 25, 2023 and discarded it on August 10, 2023. Which part ought to I file the return now on December 5, 2023?
If a consumer discards the Original ITR filed underneath part 139(1) after its due date has handed, they need to choose 139(4) whereas submitting a subsequent return. In the absence of a previous legitimate return, the date of the Original ITR or the Acknowledgement quantity for the Original ITR fields doesn’t apply. Additionally, ought to the consumer want to file a revised return later, they need to present the particulars of the “Original filing date” and “Acknowledgement number” from the legitimate ITR.
