Filing an Income Tax Return (ITR) is a fundamental responsibility for every Indian taxpayer. However, it is important to know that simply submitting your ITR is not sufficient to finish the procedure. To ensure that the Income Tax Department accepts and processes your return, you must verify it.
Thankfully, the verification procedure has been easy with the introduction of e-verification options, such as the usage of a Demat Account. If you’ve never e-verified an income tax return before or want the simplest way to do it with your Demat Account, this article will show you the full process step by step.
Why E-Verification is Essential ?
E-verification is important not just for doing the ITR, but also for completing many other tax-related activities. This includes:
- Income tax forms are verified ( submitted using the online portal or an offline utility).
- E-proceedings.
- Refund reissues requests.
- Modification requests.
- Condonation of submitting late in filing the ITR after the due date.
Under existing income tax standards, failure to verify the ITR by the deadline will result in a Rs 5,000 late cost. However, if the taxpayer’s total income is less than Rs 5 lakh, the late fee is lowered to Rs 1000.
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Benefits of E-Verification
E-verification offers several noteworthy benefits that make it the favorite choice for taxpayers:
No Need to Send Physical Copies:
With e-verification, people do not have to attach the ITR-V to the envelope and post it to the Centralized Processing Centre in Bangalore. It saves time to mail documents and also makes sure that the verification process is completely done online.
Instant Verification
This e-verification process is immediate unlike the physical ITR-V forms where forms might take time before reaching the required purpose. This means that the ITR is verified on the spot and this enhances processing time as well as the delivering of refunds.
Multiple Methods For Convenience
E-verification can be done in different ways, like Aadhaar OTP, EVC through pre-validated Bank or demat account, through net banking or through a Digital Signature Certificate.
Methods For E-Verification
Methods that can be used for the e-verification process are:
1.OTP on Mobile Number Registered With Aadhaar:
This method to check enables one to get a onetime-password linked to the Aadhaar card linked official mobile number that’s why confirming a fast and secure verification.
2. EVC generated through a pre-validated bank account:
One of the ways that an electronic verification code is produced is through a pre-validated identification in form of a bank account number.
3. EVC generated through a pre-validated demat account:
Same as the bank account method, an EVC can be generated using a pre-validated demat account.
4. EVC through ATM (offline method):
For the user who may wish to make an offline usually through ATM, an EVC can similarly be created.
5. Net banking:
Again, through net banking account, one can e-verify returns and this method is easy for those who frequently use net banking accounts.
6. Digital signature certificate:
To parties who have been using digital signatures, method DSC is convenient and secure to e-verify returns.
Step-by-Step Process of How to E-Verify ITR through a Demat Account
Now, let’s understand how to go through the process of e-verify of your ITR using Demat account. This method is very simple, Time saving and guaranty that your return will be processed on the double.
Step 1: Go to the website of the Income Tax E-Filing Application
The first process in e-verifying your return is to access the Income Tax e-filing website. Current version of the income tax portal is easily accessible at www.incometax.gov.in First time visitors will have to register an account using their PAN or Permanent Account Number. For those clients who have registered in the system earlier, then type in your login details on the respective fields provided online.
Step 2: Go to E-Verify Return Option
After logging in, click on the e-File located on the top tool bar. Here, you will find an option which is Income Tax Return click on it and then look for E-verify Return for continuing the process.
Step 3: Choose Your Filed Return for Verification
After deciding to go with E-verify Return option this will display a list of the tax return that you have filed recently. On the returned items list, point at the return you want to check and click on it.
Step 4: Select the Demat Option to Go for E-Verification
At this stage you will be required to choose the method of e-verification. out of the various options available like Aadhaar OTP, Net Banking and so on, and select Demat Account.
Important: The analysis also shows that to make use of your Demat Account for e-verification, this needs to being validated with the Income Tax Department with prior notice. This means that your Demat Account must be linked with PAN and Aadhaar and you should have to get registered with the depository participant such as NSDL Investors or CDSL investors.
Step 5: Generate EVC from Your Demat Account
Once you select the Demat Account option, an Electronic Verification Code (EVC) will be generated. The EVC is a 10-digit alphanumeric code that is sent to the registered mobile number and email ID related with your Demat Account.
Step 6: Enter the EVC and Submit
Once you receive the EVC, enter it in the selected field on the portal and click Submit. After this, you should see a confirmation message indicating that your return has been successfully e-verified.
Step 7: Confirmation of E-Verification
Upon successful e-verification, you will receive a Transaction ID for your records. You will also receive a confirmation email and SMS from the Income Tax Department, confirming that your return has been verified and is now being processed.
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Common Issues and Solutions for E-Verification Using Demat Account
Even though the e-verification process is rather simple, you may face a few frequent problems. Let’s look at some of these potential issues and how to overcome them:
- Demat Account Is Not Pre-Validated
If your Demat Account is not pre-validated, you will be unable to generate an EVC for e-verification. To fix this, go to your Income Tax e-filing portal, select the Profile Settings option, and link your Demat Account with your PAN and Aadhaar.
- Delayed receipt of EVC.
There may be a delay in receiving the EVC to your registered mobile number and email. In such cases, it’s a good idea to check if your details are updated with both your Demat Account provider and the Income Tax Department.
- Not Registered with Mobile number or email address
If the mobile number or email address which is linked with your Demat Account is no longer valid, you must contact your Demat Account provider (typically your broking or bank) to replace your contact information.
Conclusion
E-verifying your Income Tax Return is an important step in ensuring that your tax filing is correct and processed by the Income Tax Department. Using a Demat Account is one of the most safe and convenient options accessible today. By following the processes mentioned in this article, you will be able to complete the process in easy way and avoid the issues with late charges, penalties, and refund delays.
Remember, e-verifying your return is very important. So, don’t delay—log in to the Income Tax e-filing portal, use your Demat Account, and complete your e-verification today!
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