No fine for verifying ITR after due date: E-verify within 30 days of filing your return

E-verification

After you file your ITR, it's essential to verify it. Without verification, the process remains incomplete. If you fail to verify your ITR within 30 days of filing, your return will become invalid, and it will be like you never filed at all.

“The time limit for e-verification or submission of ITR-V shall be 30 days from the date of filing the return of income,” as per the IT department’s website.

Importantly, the date when you verify your return will be the official date that will be considered as when you furnished it.

“If the return of income is uploaded and ITR-V is submitted within 30 days of uploading, then in such cases the date of uploading the return of income shall be considered as the date of furnishing the return of income,” as per the IT department.

“It is further clarified that where the return of income is not verified after uploading, such return shall be treated as invalid,” the department says.

Even for receiving refunds, you must verify your ITR on the e-filing portal. However, the good part is that there is no fine for e-verification after the due date. As long as you have filed your ITR before the September 15 deadline, you won’t have to pay any fine if you verify it later. Remember to do it within 30 days, and you’re set.

Penalties and fines

“Where the return of income is uploaded within the due date but e-verified or ITR-V submitted after 30 days of uploading, in such cases, the date of e-verification/ITR-V submission shall be treated as the date of furnishing the return of income and all consequences of late filing of return under the act shall follow, as applicable,” according to the IT department.

What is the penalty for filing a late return?

• If your annual income is above ₹5 lakh, a penalty of ₹5,000 would be applicable.
• If your annual income is below ₹5 lakh, the penalty would be ₹1,000.
• A % charge on unpaid tax would be applicable per month (or part thereof).
• After the due date, you can’t change your tax regime, which means you might have to pay extra tax and receive lower refunds.
• You can also lose many benefits, including carrying forward losses, like business and capital gains (with the exception of losses from house property).
• You will be unable to claim certain deductions and exemptions while filing a belated return.
• If you fail to pay taxes, you can face rigorous imprisonment from 3 months to 2 years. Further, if the unpaid tax liability is above ₹25 lakh, the punishment can even be up to 6 months to 7 years imprisonment.