‘Discard ITR’ Option on the Income Tax Portal
The CBDT has taken an unprecedented step by introducing a new feature on the Income Tax Portal ‘Discard ITR’. This feature is aimed at providing greater flexibility to the taxpayers in respect of the ITRs filed by them. This feature will allow the taxpayers to discard their previously filed ITR if such ITR remains unverified.
Presently, the taxpayers only have the option to revise original ITR filed by them. But now the taxpayers can discard their ITR and file income tax return a fresh one. This would give taxpayers additional time to assess errors and omissions in their ITR. However, this option shall be available for the unverified ITRs only. The CBDT has also issued FAQs in respect of ‘Discard ITR’ option. We will discuss this new feature in light of these FAQs:
Scope of Discard ITR option
Taxpayers can opt for ‘Discard’ option for ITRs filed under sections 139(1), section 139(4) or 139 (5), if the taxpayer has not verified or chosen not to verify the ITR. It means that original ITR filed under section 139(1) as well as a belated or revised ITR can also be discarded.
FAQ-1: I filed my original ITR under section 139(1) on 30th July, 2023 but not yet verified. Can I discard it?
Response: Yes, the taxpayer can avail the option of “Discard” for the ITR’s filed u/s 139(1)/ 139(4)/ 139(5) if they do not want to verify it. The taxpayers are provided a facility to file an ITR afresh after discarding the previous unverified ITR.
Implication of discarding ITR
If the ITR filed under section 139(1) id discarded and the subsequent return is filed after the due date of filing ITR under section 139(1), it would attract implications of belated return like penalty under section 234F etc. Thus, it is advisable to check whether the due date for filing the return u/s 139(1) is available or not for discarding any previously filed return.
FAQ-2: I discard my ITR by mistake. Is it possible to reverse it?
Response: No, if the ITR is discarded once, it can’t be reversed. Please be vigilant while availing “Discard” option. If an ITR is discarded, it means that such ITR is not filed at all.
FAQ-3: How to access the ‘Discard’ Option on Income Tax Portal?
Response: The taxpayers can find ‘Discard’ option in below path:
www.incometax.gov.in → Login → e-File → Income Tax Return → E-Verify ITR → “Discard”
Eligibility of ‘Discard’ option
The ‘Discard’ option is available only if the ITR status is “unverified” or “Pending for verification”.
FAQ-4: When can I avail this “Discard” option and can I avail this “Discard” option multiple times or only once?
Response: The taxpayer can avail this option only if the ITR status is “unverified”/ “Pending for verification”. There is no restriction on availing this option multiple times. Only precondition is “ITR status” is “unverified”/ “Pending for verification”.
FAQ-5: Is it mandatory to file subsequent ITR if I “Discarded” my previous unverified ITR?
Response: A user, who has uploaded the return data earlier, but has made use of the facility to discard such unverified return is expected to file subsequent an ITR later on, as it is expected that he is liable to file the return of income by way of his earlier action.
FAQ-6: I sent my ITR-V to CPC and it is in transit and not yet reached CPC. But I don’t want to verify the ITR as I get to know that details are not reported correctly. Can I still avail “Discard” option?
Response: User shall not discard such returns, where the ITR-V has already been sent to CPC. There is an undertaking to this effect before discarding the return.
Applicability of “Discard ITR” option
“Discard” option shall be available for ITR filed for A.Y. 2023-24 and onwards.
FAQ-7: My ITR for AY 2022-23 is pending for verification. Can I Avail this “Discard” option?
Response: User can avail this option only from AY 2023-24 onwards for the respective ITR.
Time limit for exercising “Discard” option
This option will be available only till time limit specified for filing ITR u/s 139(1)/ 139(4)/ 139(5) i.e. 31st December of the respective assessment year.
FAQ-8: I discarded my original ITR -1 filed on 30th July 2023 on 21st August 2023 and I want to file subsequent ITR on 22nd August 2023. Which section should I select?
Response: If user discards the original ITR filed u/s 139(1) for which due date u/s 139(1) is over, they are required to select 139(4) while filing subsequent return. As there is no prior valid return existing, date of original ITR/ Acknowledgement number if Original ITR fields are not applicable.
Further if the user wants to revise revised return in future, he needs to provide details of “Original filing date” and “Acknowledgement number” of the valid ITR i.e. ITR filed on 22nd August 2023 for filing revised ITR.
Source: The source of FAQs is the Income Tax Portal of the Government www.incometax.gov.in.
Conclusion: The “Discard ITR” feature is a great step in simplifying the tax filing process for taxpayers by providing greater flexibility to them. However, it is requested to users to be cautious before opting for this feature as reckless opting of this feature may lead to unnecessary late fee/ penalty to them.
Disclaimer: The above article is based upon the FAQ issued by the Income Tax Department and is meant merely for educational purposes of the users. The article does not carry any corroborative value. Readers are advised to consult with an expert before applying the information contained in this article. Taxwink is not responsible for any loss or damage caused to any person due to use of any information contained in this article. For “User Support” please mail at: support@taxwink.com
