IT department gave one more chance to regularize last year’s tax returns

To be certified within four months of the filing of tax return, but as a one-time exemption, to the assessees through electronic means including Aadhaar linked One Time Password or by sending physical copy to the Centralized Return Processing Facility of the Tax Department for AY21 is allowed to authenticate the return. In Bangalore by the end of February 2022, an official order showed up.

Authentication of returns filed online electronically or by signature on the physical copy of the return form is a legal requirement as the taxpayer declares the information furnished in the return to be true.

One can also authenticate the return filed online by logging into the e-filing account through Aadhaar based one-time password or through net banking. Electronic verification is also possible using Bank Account Number, Demat Account Number or Bank Automated Teller Machine.

In law, the consequences of failing to verify a tax return within the allowed time are significant because such a tax return would not be considered valid. The tax department’s order said the exception to giving one more opportunity was for resolving “grievances of taxpayers relating to non-verification of income tax returns” and regularizing such returns.

This exemption, however, is not applicable in cases where, during the intervening period, the Income Tax Department has already resorted to any other measure to ensure filing of tax returns by the taxpayer, the order showed.

It also said that the returns regularized under this facility will be processed by the end of June 2022.

The department said that the provisions of section 244A(2) of the Act would be applicable while determining interest in case of tax refund. This section says that if there is a delay in refund, whether wholly or partly, due to reasons attributable to the assessee or the tax deductor at source, the period of delay caused thereon shall be excluded from the period for which interest is payable.

The order said that if the taxpayers concerned do not get their returns regularized by February 28, 2022, there may be necessary consequences as per the provision in the law for non-filing of returns.