ITR-V stands for ‘Income Tax Return–Verification’ Form.  It is an acknowledgment which is received after you have e-filed your Income Tax Return. It is received from the Income Tax Department at your registered email ID and the same can also be downloaded from www.incometaxindiaefiling.gov.in

Income tax return filing process does not end with just filing of income tax return. The return filed has to be validated i.e., taxpayer need to certify that he has filed the return by signing it. This verification can be done either by e-verifying the return or by forwarding the physical signed copy to the CPC, Bengaluru.

The time limit for forwarding the signed Form ITR – V in ‘blue ink’ to Income Tax Department CPC, Bangalore is within 120 days of e-filing of return. To complete the process of e-filing, it is necessary to send ITR-V to the Income Tax Department CPC, Bengaluru or else it needs to be e-verified.

For e-verification through Aadhar, the linking of mobile with Aadhar is a pre-condition.

The easy option for most of the taxpayer is to forward the signed copy to CPC, Bengaluru.

Address for sending form ITR-V

Income Tax Department – CPC
Post Box No.1,
Electronic City Post Office,
Bangalore-560500, Karnataka.

 

There are number of issues which arise in the case of lot of taxpayers as far as ITR V is concerned. Few of the important issues are as under:

1. There is no system of physical acknowledgement of it from CPC or for sending ITR V through registered post.
2. Even if the signed hard copy of ITR V is forwarded, still the status displayed is “Not received”
3. There are cases where tax professionals or taxpayers have forwarded 5 or 10 ITR V in a single envelop but only few are shown considered as received and few remains unacknowledged. Either all could have been shown as “Not received” or “Received”
4. The refund of taxpayer is not issued for the reason that ITR V is not received.
5. The returns are automatically invalidated after 120 days and the taxpayer who are in the process of availing bank loan are denied the loan considering them as non filers.
6. The benefit of carry forward of the loss is denied due to return being treated as invalid.

In short, even if the return is duly filed, the taxpayers are considered as non filers. It is happening even in case the where the taxpayers have duly forwarded the singed ITR-V twice or thrice. The taxpayers don’t have any other option but to dance as per the tune of other side due to lack of counter evidence for which no procedure exists.

 

What could be done:

Submission of ITR-V is a technical requirement. The taxpayers are not well qualified to know the intricacies of the due procedure. Equally, accountant, advocates, CA, TRP & other intermediaries are not equipped to verify it in all their client cases. To overcome such case, the CBDT could amend the IT rules on any of the suggestions as under:

First Suggestion:

Once taxpayer is able to login at his portal, it could be presumed that he himself is filing the return. Why the need for ITR V verification arises. It could be done away with. There is a system of password for logging at www.incometaxindiaefiling.gov.in
Once the person is logged in the portal, why further the need of verification should arise. The discussion with the professionals reveals that the signed copy is not verified by the CPC Bengaluru with the signature of the Assessee and the submission to CPC is just a formality. Why unnecessary burden the taxpayer with the additional burden. Ease of business means ease in waiver from submission of unnecessary documents. Right?
If it’s not correct, let us make you recall the new e-assessment system introduced. At the time of making submission for e-assessment cases, the system of validation of e-submission is not there.
The same system even exists at the time of filing grievances and other submission.
Why not the requirements of ITR V be done away with. It will be the biggest welcome move by the taxpayer. Let us hope that someone is reading & thinking on it.

Second Suggestion:

Let the taxpayer be denied the facility to e-file the next return till ITR V of earlier year is verified i.e., ITR V could be validated anytime before the submission of next year return.

Third Suggestion:

The time limit of ITR V submission could be relaxed even beyond 120 days.

Forth Suggestion:

The system of forwarding ITR V to Bengaluru may be done away with and the local office of Income Tax Department may be authorised to accept it. By this way, the taxpayer will be getting the acknowledgment and proof that they have submitted their singed ITR V.

 

Conclusions

By implementing any or all of the above suggestions, treasury will not be losing anything. CBDT may note that by invalidating the ITR V, no one is going to be benefited. By invalidating ITR V, taxpayers are at losing end which is sometimes because of failure of CPC, Bengaluru. Let the taxpayer be given a chance to validate their return.

 

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