CBDT had issued Circular No. 13/2016 dated 09th May, 2016, giving tax payers who have e-uploaded their income tax returns from Asssesment Year 2009-10 to 2014-15, within the time allowed but have remained incomplete due to non-submission of ITR-V for verification  duly signed to CPC – Bengaluru. Those tax payers have a final opportunity to complete the process by  Electronic Verification Code (EVC) on or before 31st August, 2016. As an alternative to EVC, the tax payer is allowed to send a duly signed copy of ITR-V to the CPC, Bengaluru by 31st August, 2016 by speed post.

CBDT also relaxes the time limit for intimation under section 143(1) and directs that such returns shall be processed by 30-11-2016 and intimation of processing of such returns shall be send to the tax payer concerned as per the laid down procedure. In refund cases, while determining the interest the provisions of section 244A(2) of the Act would apply.

Section 244A(2) provides that where the reasons for delay in processing of refund is attributable to the taxpayer, such period of delay caused by the assessee shall be excluded while computing the period for which interest in refund is payable.

It is also clarified in the circular that “in case the taxpayer concerned does not get his return regularized by furnishing a valid verification (either EVC or ITR-V) till 31.08.2016, necessary consequences as provided in law for non-filing the return may follow”.

Consequences of non-filing ITR-V within the time allowed are significant as such a return can be declared ‘Non-Est’ (does not exist) according to the law and the assessee shall face repercussions. For example, under section 271F a penalty Rs.5,000 may be levied.

TAX PAYERS WHO HAD UPLOADED INCOME TAX RETURN AND NOT SUBMITTED ITR-V SHOULD AVAIL THIS OPTION SO AS TO AVOID PENAL PROCEEDINGS.

To view the Circular, please click the link below:

https://drive.google.com/file/d/0BwfaVqFwg9yDYzRvOGQtaHB5SmM/view?usp=sharing