The income tax portal ‘Discard ITR’ option serves as a lifesaver for people who made mistakes while filing the returns. There will be a lot of confusion on how to use it and when to use it. An ITR filer who filed a return under Sections 139(1) /139(4) / 139(5) of income tax act can opt for the discard option if he doesn’t want to verify the return.
However, this fresh filing is not free of consequences if it misses the original due date. As per the statute any return filed after the deadline is treated as a belated return, attracting the usual penalties and restrictions that come with late filing, including late fees under Section 234F. The same logic applies here also.
The Discard option is also time-bound. It is available only within the overall time limit prescribed for filing returns, which currently stands at 31st December following the end of the relevant financial year.
This facility is not available retroactively for all prior years. It applies only from Assessment Year 2023-24 onwards.
What Is the “Discard ITR” Option?
The income tax portal allows the taxpayers to discard returns irrespective of whether it’s original Belated, or Revised ITR. However, the tax filer has to use this option before the return is verified. Once you discard an ITR filed before verification, the department/system treats it as ‘you never filed’.
You can find the Discard ITR option in the income tax portal. Then login to the portal and go to the e-file. Go to Income Tax Return, then select e-Verify ITR. If your ITR is not verified, then you can discard it.
Filing an Original Return
A taxpayer who has filed an Original return under Section 139(1) but has not yet verified it, and later decides they no longer wish to proceed with that filing. For instance, someone who filed their Original ITR under Section 139(1) on 30th July 2023 but left it unverified is indeed permitted to discard it. The portal allows this facility for returns filed under Section 139(1), 139(4), or 139(5), provided the taxpayer does not wish to verify the return as filed.
After discarding, the taxpayer is free to file a fresh return. The important part is the due date. If the original return filed under Section 139(1) is discarded and the new return is filed after the due date applicable under that section, the new return will be treated as belated. Thus penalties will be attracted under Section 234F.
Discarded ITR Reversible?
Discarding ITR is a one way action. If a return is discarded by mistake, there is no way to reverse or undo it. The portal does not offer any restoration mechanism, and a discarded return is permanently treated as though it was never filed. The tax filers have to be cautious while discarding the return.
ITR-V Is Already in Transit to CPC
If you send your returns for verification directly to the Centralized Processing Centre (CPC) via post rather than verifying it electronically, the discard option must be used before sending the same. If the ITR-V is already in transit to CPC or it has already dispatched the ITR-V but it has not yet reached CPC, you still cannot use this option. Once the ITR-V has been sent to CPC, the return is considered to be in the process of verification.
How many times you can opt ‘Discard Facility’
There is no upper or lower limit for opting the facility. You can use this facility before your ITR is verified and also before December 31st. That is you can use this facility when your return is in “Unverified” or “Pending for Verification” status.
Difference between ‘Discard Facility’ & ‘Revise Facility’
| Discarded Return | Revised Return |
| Erased and no longer visible on the portal | Not erased. It’ll be still visible in the portal |
| Original return must be unverified | Original return must already be verified |
| A completely fresh, independent filing | Not completely fresh. Linked to original filing |
While concluding this, the Discard Facility is a best tool for tax filers who made a mistake in filing and corrected it later. Compared to revised return, you cannot make corrections in the existing/original ITR itself. While opting to discard the facility, the whole ITR will be erased and the tax filer has to file a new ITR, which will not be linked to the original ITR.
Support our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates
aniltikotekar4sme.com 