ITR Filing AY 2022-23 Update: Income Tax Return declared invalid? What to do now

ITR Filing AY 2022-23 Latest News: Got Invalid Return? Know what can happen if the tax department declared an ITR as invalid

ITR Filing AY 2022-23 Update: Income Tax Return declared invalid? What to do now
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ITR Filing AY 2022-23: The due date of Income Tax Return filing for Assessment Year 2022-23 was July 31, 2022 for salaried employees and HUFs whose accounts don’t need to be audited. After filing the return, taxpayers are required to verify it so that the tax department can further process the ITR and issue a refund if applicable. However, if a taxpayer fails to verify his/her return within the stipulated time then the tax department considers such ITR as invalid. Here’s a look at what you can do if your return is declared invalid.

According to the Income Tax rules, it is considered that the taxpayer has not filed any return in case his ITR is declared invalid. In such a situation, the taxpayer may file a fresh ITR if the due date has not expired. The process becomes more complex upon the expiry of the due date in case of invalid returns.

“In case a return has been declared invalid, it shall be deemed that no return has been filed by the taxpayer. In such a case, a new return can be furnished if the time limit for furnishing the original/belated return has not yet expired. If the time limit for furnishing the return has expired, you cannot file the return for such an assessment year,” experts at Taxmann said in a document with FE PF Desk.

“In that situation, the Assessing Officer can proceed to make the best judgment assessment under Section 144. Alternatively, you may approach the CBDT for condonation of delay in filing of return,” they added.

When ITR verification is not mandatory

It is mandatory for taxpayers to verify their returns. However, it is not mandatory to verify the original returns of the taxpayer who wants to file a revised return. In such a situation, the taxpayer can verify the revised return.

Experts said that the tax department would process only the revised return, and no action will be taken against the original return.

Taxpayers who failed to file their ITRs by 31 Jul can still do so but they will have to pay a penalty.

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