ITR 2021-22: Using the Demat account to verify your income tax return | Business Standard News

Clipped from: https://www.business-standard.com/article/pf/itr-2021-22-using-the-demat-account-to-verify-your-income-tax-return-122072000224_1.html

Once the ITR 2021-22 is filed, the taxpayer needs to verify their return within 120 days, or it is deemed invalid

tax

The income tax department (I-T department) has set the last date for filing the income tax return for the financial year 2021-22 (ITR 2021-22) as July 31, 2022. For the individuals that require an audit, the last date has been fixed as October 31. However, once the ITR is filed, the taxpayer must verify their return within 120 days, or it is deemed invalid.

Here is a guide to e-verify your ITR using the Demat account

The Demat account or the dematerialisation account is the account where the investors hold their shares and securities in electronic form. It is used in the trading of equity shares and bonds.

You can use your Demat account to e-verify the ITR 2021-22.

Here is how:

  1. Go to the official portal of income tax e-filing and click on ‘e-verify return’
  2. Click on ‘EVC through Demat account’ and click on ‘Continue’
  3. Now, you will receive an EVC on your mobile and the registered e-mail ID.
  4. On the screen, enter the EVC and click on ‘e-verify’
  5. Your ITR is now e-verified.

What happens if you do not verify your ITR?

If the ITR is not verified within 120 days of filing, it is considered invalid. It would mean that the ITR of the previous financial year (FY) has not been filed.

It can lead to a number of penalties and fines:

  • Interest payable: The taxpayer will be liable to pay an additional tax of 1 per cent on the outstanding tax if the ITR is not filed. It will be calculated from the last date of filing the ITR, i.e. July 31, 2022.
  • Late fees: Under Section 234F of the I-T Act, late fees of Rs 1,000 or 5,000 will be payable.
  • Prosecution: The individual may also be charged with imprisonment of tenure between three months and seven years.

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