Discard and Declutter: Simplifying Your Tax Records with the 'Discard Return' Option.

 

What is the Discard Return ITR facility?

An important functionality on the website of the IT department has been introduced by the officers which permits the assessees to ‘Discard’ their primary filed still unverified ITR. The assessee was permitted to amend the ITR simply in the matter of the error or omission. 

 

This facility is available for ITRs filed under Sections 139(1), 139(4), and 139(5) if they do not want to verify them. After discarding the previous unverified ITR, the user is given the option to file an ITR again. However, if the “ITR filed u/s 139(1)” is Discarded and the subsequent return is filed after the due date u/s 139(1), it will attract belated return implications such as 234F, etc. Before discarding any previously filed return, it is recommended to check whether the due date for filing the return u/s 139(1) is available.

 

The discard facility can be exercised multiple times, as long as the ITR status remains unverified or pending verification. If you have sent your ITR verification to CPC even if it has not yet reached it, you cannot use the discard option. The original ITR must be for AY 2023-24 (FY 2022-23) and onwards which can be discarded from the income tax records. This feature is completely free to use, with no charges or fees involved. This allows users to enjoy its benefits without any financial worries.

 

How to discard your ITR

To discard your ITR, follow these steps:

1. 1. Go to the income tax website: https://www.incometax.gov.in/IEC/foportal
   2. Log in to your account using your PAN number and password.
   3. Click on the “e-Filing” tab.
   4. Select “My Returns” from the drop-down menu.
   5. Click on the “Discard Return” link next to the return you want to discard.
   6. Select the reason for discarding the return from the drop-down menu.
   7. Click on the “Discard” button.

 

What happens when I discard my ITR?

It is not possible to restore an ITR once it has been discarded. This is a permanent action that effectively claims that the ITR was never filed in the first place. This means that you will need to file a fresh ITR if you want to claim a refund or if you are liable to pay tax.

 

Things to keep in mind

• • You can only discard an ITR that has not been processed yet. If your ITR has been processed, you will need to file a revised return.

• • You cannot discard an ITR that has been filed under section 139(5). This is a special provision for taxpayers who are outside India for more than 182 days in a financial year.

• • If you discard your ITR, you will not be able to generate a fresh copy of the ITR from the Income Tax Department website. You will need to file a new ITR from scratch.

 

Conclusion:

The Discard Return ITR facility is a useful tool for taxpayers who have made a mistake in their ITR or who have changed their mind about filing it. However, it is important to keep in mind the limitations of the facility before using it. Nonetheless, the lack of a legal provision for discarding the ITR raises concerns about its future legal validity, potentially opening it up to scrutiny down the road.

 

FAQs on Discard Return: