Income Tax Department introduces new ‘Discard ITR’ facility. Things to know about it

By: Pune Pulse

November 30, 2023

Pune: The introduction of a novel feature called ‘Discard ITR’ on the website of the Income Tax Department enables taxpayers to discard their previously filed but unverified Income Tax Returns (ITR).

Amit Gupta, MD of SAG Infotech, stated that the latest feature called ‘Discard ITR’ empowers users to discard their original, belated, or revised ITR, which broadens the scope for revision beyond mere errors or omissions. Nevertheless, it is crucial to bear in mind that despite its advantages, there is no legal provision for discarding an ITR at present, which may raise concerns about its legal validity in the future.

The tax department has recently published a set of frequently asked questions (FAQs) to provide answers to common inquiries regarding the discard ITR option. Here is a comprehensive overview of everything you should be aware of regarding this latest functionality.

1) Taxpayers have the option to choose the ‘Discard’ feature for their ITRs filed under sections 139(1), 139(4), and 139(5) if they do not wish to verify it.

2) However, if the ITR filed under section 139(1) is discarded and a subsequent return is filed after the due date under section 139(1), it may result in implications of a belated return such as 234F, among others.

3) To access the ‘Discard’ option, users can follow the designated pathway on the income tax website. On the income tax portal, users can locate the discard option by visiting www.incometax.gov.in → Login → e-File → Income Tax Return → e-Verify ITR → ‘Discard’.

4) This option is only available to users if the ITR status is either ‘unverified’ or ‘Pending for verification’.

5) Users can repeatedly utilize the discard option as long as the ITR status remains unverified or pending verification.

6) Starting from AY24, this feature can be accessed. Once an ITR is discarded, it cannot be reinstated.

7) This option will only be available until the specified time limit for filing ITR u/s 139(1)/139(4)/139(5) (i.e., 31st December of respective AY as of now).

8) Once an ITR is discarded, it becomes irreversible and essentially disclaims the filing of the ITR, making it impossible to reinstate.

In the meantime, the Central Board of Direct Taxes (CBDT) has reported that a record number of over 7.85 crore Income Tax Returns were filed until October 31 this year. The official release states that October 31 was the due date for filing ITRs (other than ITR-7) for taxpayers without any international or specified domestic transactions.