New ‘Discard’ feature allows taxpayers to manage their ITR filings more efficiently and helps rectify any inaccuracies or omissions within the specified window. Let’s know everything about it….
Income Tax Department has launched an important functionality on its website for ITR filers, allowing taxpayers to discard their already filed but unverified Income Tax Returns (ITRs). Earlier, taxpayers were allowed to amend ITR only in case of error or omission.
“The income tax portal has introduced a new feature that enables users to ‘Discard ITR’ for unverified original, belated, or revised ITRs starting from the assessment year 2023-24. It is a good move by the income tax department as it will increase the scope for taxpayers for revision of their income tax return, which was earlier limited to omission and error. However, so far there is no provision in law for discarding the ITR hence going forward its legal validity can be questioned,” said Tarun Kumar Madaan, Tax Head at Coherent Advisors.
The discard option can be used repeatedly, provided the ITR status remains as unverified or pending verification. The facility is only available for the AY24 onwards for the respective ITR till the specified time limit for filing ITR under section 139(1)/139(4) /139(5). Once an ITR is discarded, it cannot be reinstated. The action is irreversible, and therefore it is essentially disclaiming that the ITR was not filed at all.
To locate the ‘Discard’ option, follow the website pathway: www.incometax.gov.in → Login → e-File → Income Tax Return → e-Verify ITR → “Discard.”
The FAQ issued by the Income Tax Department states, “If the user does not want to verify the same, he/she can use the “Abandon” option for ITR being filed under Section 139(1)/139(4)/139(5). Can avail benefits. , The user is provided the facility to file fresh ITR after discarding the previous unverified ITR. However, if “ITR filed under section 139(1)” is rejected and subsequent return is filed after the due date under section 139(1), it will attract implications of late return like section 234F etc. Thus, it is advisable to check whether the due date for filing return under section 139(1) is available before rejecting any return already filed.”
If you have rejected your previous unverified ITR then it is not mandatory to file the next ITR. However, given that the taxpayer has uploaded the return data earlier, it is generally anticipated that they will file another ITR later. Also, if you have sent your ITR to V CPC and it is inbound, but you find that the details have not been reported correctly, you are clearly advised not to file such returns.
The new ‘Discard’ facility allows taxpayers to manage their ITR filings more efficiently and helps rectify any inaccuracies or omissions within the specified windows. But it’s essential to use it with caution as once discarded, an ITR can’t be restored.
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