You can junk your ITR and file new one!

The Income Tax Department introduces various tools and features from time to time to make the process of ITR filing convenient for taxpayers. Recently, the department had brought in a new feature. It is called ‘Discard Return.’

So What is ‘Discard Return,’ and how does it work? What benefits you get if you avail of the ‘Discard Return option?

The ‘Discard Return’ option allows taxpayers to discard their filed income tax return after submission. However, there’s a condition: the individual should not have verified the ITR.

In other words, if someone realises an error after filing the ITR, he can delete that filed return from the IT Department’s records. Afterwards, they can file a new return.

Before the introduction of the ‘Discard’ option, taxpayers did not had the provision to delete a filed income tax return. This meant that if someone had already filed a return and later discovered an error they had to first verify the return.  After verification, they could file a revised return to correct their mistakes. This process often prolonged the ITR filing procedure.

Now, with the new feature, individuals can rectify errors in the original return without going through the lengthy process of filing a revised return.

As long as the income tax return has not been verified online or offline, you can discard it. If you’ve already verified the ITR, you cannot use the discard return option.

The feature of discard returns applies to Financial Year 2022-23, i.e., Assessment Year 2023-24, and onwards.

This means that returns filed on or after April 1, 2023, can be deleted. Once a return is discarded, it cannot be retrieved. Use this option cautiously.

After you have discarded an old return, if you file a new return after the deadline, penalties may apply.

Suppose you filed the original return on July 30, 2023, but did not verify it. Now, if you recall that you have missed any additional income details, you can use the discard return option to delete it and file a new return.

However, once you’ve discarded a filed return under Section 139(1), it cannot be retrieved.

And the new return has been filed after the deadline of 31st July, hence late fee will be charged under section 234F… it is applicable in case of belated returns.

There is a fine of up to Rs 5,000. as you filed the returns after Juky 31.

Now let us understand how can you use discard  return option?

To discard income tax return.  First of all you have to go to Income Tax Department portal www.incometax.gov.in. Enter PAN and password and then login,  Under Menu Bar You have to go to e-File option and click on Income Tax Return. Then click on e-Verify ITR.  Here, you will get the option of Discard Return. Here you can discard your Filed but Unverified Return.

Under section 139 (4), you also get the option of discard return for belated returns filed and under section 139 (5) you also get this option in case of revised return filed.

Here too, if there is a mistake in the return, you can delete the old return and file a new ITR return. After filing the ITR, verify it, only then will the return be processed and refund received.

If your return is not verified, your return may be considered invalid.