Income Tax
Understanding E-verification of Income Tax Returns
Filing your income tax returns is important because it's how you report your income and pay taxes to the government. This legal requirement helps ensure everyone pays their fair share, which is essential for the economy to function smoothly.
Filing your taxes accurately and on time is crucial to avoid fines and legal issues and it also serves as a complete record of your financial activities. Previously, checking your tax returns required a lot of paperwork and took a long time. Now with e-verification you can confirm your returns electronically.
This new method makes the process easier, reduces paperwork and saves time for both taxpayers and the tax department. By using e-verification methods like a Demat account you can file your taxes securely and conveniently, making the whole experience simpler.
E verification of income tax return is done using an Electronic Verification Code or EVC. This is a 10 digit code made up of letters and numbers that is sent to your registered mobile phone. You use this code to confirm your identity as a taxpayer.
Step-by-Step Guide to E-verifying Using Demat Account
Step 1
To register as a user go to the Income Tax website at https://www.incometax.gov.in/iec/foportal/. When you register your Permanent Account Number or PAN will be used as your user ID and you can choose your own password. After setting up the account, log in to the portal.
Step 2
Once logged in, choose e-file > Income Tax Return > E-Verify Return.
Step 3
Now, you'll have the option to generate an Electronic Verification Code or EVC using your Demat account, bank account number or net banking. Choose the option to e-verify using your Demat account.
Step 4
If your Demat account isn't pre validated a message will pop up asking you to Prevalidate your Demat Account. You will then be taken to a page where you can enter your Demat account details and complete the prevalidation process.
Step 5
Then enter the necessary details such as type of depository either CDSL or NSDL, your mobile number and your email address. After you've filled in all the information, click the Prevalidate button. This will send a request to the depository to confirm your account.
Step 6
You can now generate an Electronic Verification Code or EVC using your verified mobile number. After confirming you'll receive EVC on your phone.
Step 7
Submit EVC you received. Remember EVC is a 10 digit code that's valid for 72 hours. Each EVC is unique to your PAN and can only be generated once. If you need to make any changes you'll have to start the e-verification process again to get a new EVC.
Step 8
You will see a success message on the screen along with a Transaction ID and your Electronic Verification Code. Make sure to write down Transaction ID and EVC for your records. You'll receive a confirmation message on the email and mobile number you registered on the e-filing portal.
Note: If your Demat account is pre-validated, you can skip Steps 4 and 5. Simply enter EVC you received and your return will be e-verified.
Benefits of Using Demat for E-verification
Here are the benefits of using a Demat account for e-verifying your income tax returns.
1. Better Security: Using a Demat account to e-verify your tax returns enhances the security of your personal and financial information. Demat accounts have strong security measures to protect against unauthorized access and data breaches keeping your sensitive details safe.
2. Convenience and Less Paperwork: E-verifying through a Demat account eliminates the need for a lot of physical paperwork. This digital method makes the verification process easier and more efficient, saving you time and effort.
3. Faster Verification: E-verification process via a Demat account is much quicker than traditional methods. This means you get confirmation of your verified returns sooner making the whole tax filing process smoother.
4. Fewer Errors: Digital verification reduces the chances of mistakes that often happen with manual processing. This accuracy helps ensure your tax returns are correct, lowering the risk of discrepancies or issues with tax authorities.
Common Issues and Solutions during e-verification process
Here are some common issues people face during e-verification processes and solutions for each:
1. Mismatch of Details
Issue: Your name, date of birth or other details don't match with the official records.
Solution: Double check the details you've entered and make sure they match exactly with your official documents like ID cards, tax forms etc. Even small differences like an extra space can cause issues.
2. Invalid OTP
Issue: OTP you entered is being rejected or has expired.
Solution: Ensure that OTP you received is still valid. If it's expired request a new one. Also check your network for any delays in receiving the OTP.
3. Technical Glitch
Issue: Website or app crashes or doesn't load properly.
Solution: Refresh the page, clear your browser cache or try using a different browser or device. If it's a known technical issue wait a few minutes and try again later.
4. Documents Not Uploading
Issue: You are unable to upload the required documents.
Solution: Check the file size and format requirements. Make sure your document meets those criteria. You can try resizing or converting the file if needed.
5. Aadhar or ID Authentication Failed
Issue: The system fails to authenticate your Aadhar card or ID details.
Solution: Double check the information you entered especially your Aadhar/ID number. If it continues to fail you may need to update your Aadhar details or contact the support team.
6. Email or Mobile Number Not Verified
Issue: The system says your email or mobile number is not verified.
Solution: Check your inbox or SMS for a verification link or OTP and complete the verification process. If you don't receive it request it again or check your spam/junk folder.
7. Slow Verification Response
Issue: Verification process is taking too long to complete.
Solution: Some systems take time to process the verification especially during high traffic times. Be patient and wait or check your email/SMS for any follow up instructions.
8. Multiple Verification Attempts
Issue: You've tried verifying multiple times but still failed.
Solution: Review the process steps carefully and avoid making too many attempts in a short time. If the issue persists contact customer support for help.
Conclusion
E-verifying your Income Tax Return using a demat account is a quick and hassle-free process that makes things much easier. By linking your demat account to the e-verification system you can confirm your ITR in just a few simple steps saving you time and effort.
To make it even smoother you can start by opening a demat account if you don't have one. Once it's set up you can use it for easy and efficient e-verification of your tax returns ensuring that everything is filed accurately and on time.
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