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The New 'Discard ITR' Feature on the Income Tax Website
Written by Gagandeep Arora - Printed on - Date - 10th Nov 2023
In a significant move aimed at providing greater flexibility to taxpayers, the income tax department has recently introduced a groundbreaking functionality on its website - the 'Discard ITR' feature. This innovative addition allows taxpayers to discard their previously filed but unverified Income Tax Returns (ITR), presenting a new avenue for revising returns beyond mere correction of errors or omissions. However, as with any novel initiative, questions linger about its legal standing, and experts caution that while beneficial, the lack of a specific legal provision for discarding an ITR may raise concerns in the future.
Scope of Discard:
Taxpayers can opt for the "Discard" option for ITRs filed under sections 139(1), 139(4), or 139(5) if they choose not to verify them.
Implications of Belated Filing:
Discarding an ITR filed under section 139(1) and subsequently filing a return after the due date under the same section will attract implications of a belated return, including penalties like 234F.
Accessing the 'Discard' Option:
To utilize the 'Discard' option, users can follow a specific pathway on the income tax website. After logging in, users navigate to e-File -> Income Tax Return -> e-Verify ITR -> “Discard”.
Status Criteria:
The 'Discard' option is only available if the ITR status is "unverified" or "Pending for verification".
Repetitive Usage:
Users can avail of the discard option repeatedly as long as the ITR status remains unverified or pending verification.
Applicability:
This feature is available for Assessment Year (AY) 2024 onwards.
Time Limit:
The 'Discard' option is accessible only until the specified time limit for filing ITR under sections 139(1), 139(4), or 139(5), currently set as December 31st of the respective AY.
Irreversible Action:
Once an ITR is discarded, it cannot be reinstated, making the action irreversible and effectively disclaiming the filing of the ITR.
Understanding the FAQs:
To address common queries and provide clarity on the 'Discard ITR' option, the tax
department has released a set of Frequently Asked Questions (FAQs). These FAQs serve
as a comprehensive guide, covering a spectrum of concerns that taxpayers might have
regarding this new functionality.
The introduction of the 'Discard ITR' feature marks a progressive step in aligning
the income tax filing process with the evolving needs of taxpayers. While it offers
newfound flexibility and an avenue for revising returns, users are advised to
exercise caution due to the absence of a specific legal provision governing the
discard of ITRs. As taxpayers explore this innovative functionality, staying
informed about the associated procedures, limitations, and implications is crucial.
