How to E-verify your Returns using a Demat Account?


Taxpayers have to pay taxes regularly according to their tax bracket slabs. The first step is to file your annual returns, and then verify it. Earlier, the verification process was tedious, with the requirement of sending the Income Tax Returns – Verification (ITR-V) through the post to the Central Processing Centre (CPC), Bengaluru. In the present digital age, verification has become convenient and hassle-free, with the Income Tax department introducing digital/ electronic methods of verification. As a taxpayer, you can now use these platforms to electronically verify (e-verify) your returns.

You can now e-verify through:

  • Your Demat Account
  • Aadhar
  • Net banking
  • Bank Account
  • ATM card

If you wish to e-verify using your online Demat Account, you need to follow the steps given below:

  • Step 1: Register as a user by opening an account in the Income Tax department’s web portal: https://incometaxindiaefiling.gov.in/ You must remember that your Permanent Account Number (PAN) will be your user ID, and you can select a password of your choice, while registering. Then log in to the portal.
  • Step 2: Now select the options of your account, and viewing returns.
  • Step 3: You can now see on your screen various sub-heads like ITR/Form of different financial years, filing type, acknowledgment number, PAN, the status of your returns and the option to view the returns pending for e-verification. You must now select the option to e-verify.
  • Step 4: You will now get the options for generating Electronic Verification Code (EVC) through your Demat Account, bank account number, and net banking. You have to select the option to e-verify through Demat Account.
  • Step 5: Now you are required to prevalidate your account. Select the option to prevalidate your Demat Account.
  • Step 6: You will now get the option to select the depository type, either National Securities Depositories Ltd (NSDL), or Central Securities Depositories Ltd (CSDL). According to your selection, you will be then asked to provide details including, Demat Account number, Depository Particaipant’s (DPs) ID, client’s ID, your phone number and email address. After completing the process, select the option to prevalidate.
  • Step 7: Now you will be asked whether you want to generate EVC through your verified mobile number. After confirming, you will receive an EVC on your phone number.
  • Step 8: You are now required to submit the Electronic Verification Number. Here, you must remember that EVC is a 10-digit code, which remains valid for up to 72 hours. EVC is unique to your PAN, and can be generated only once. If any modifications have to be made, you have to start afresh for e-verification and regenerate a new EVC.
  • Step 9: You will receive an acknowledgment that your return has been e-verified. You will also be notified about the successful e-verification of returns via your Demat Account through an email.

I have already filed my returns electronically? Do I still need to e-verify it through my Demat Account, or via other available alternatives?

The mere filing of returns is not proof of having fulfilled your obligation to pay taxes. Filing of returns is the first step towards making tax payments. To complete the process, you need to verify your returns, within 120 days of filing ITR.

Is it mandatory to use only e-verification?

According to the Income Tax department’s rules, electronic verification of your returns is not mandatory. You can still send a physical copy of ITR-V via post to CPC, Bengaluru.

What are the Benefits of E-verification through your Demat Account?

Now you can use your online Demat Account, not only to trade in stocks and securities but also e-verify your ITR returns. Using this method of e-verification has several benefits:

  • Hassle-free and convenient: Using your Demat Account for e-verification is a paperless process, which can be finished within minutes. You don’t need to do cumbersome paperwork, like downloading, signing and posting the physical copy of your ITR.
  • Quick processing: While the whole procedure of sending ITR forms physically, and its subsequent processing by the Income Tax department will take days, e-verification through your Demat Account will be processed quickly. Refunds, if any, will also be transferred quickly to your account.
  • Safe: E-verification of ITR through your online Demat Account ensures confidentiality. The digital platform has multiple levels of protection. There is no risk of your ITR being lost in transit.

Conclusion

Thus, you can use your online Demat Account to e-verify your ITR. You must always remember to open a Demat Account and Trading Account with a trusted and reliable broker. IIFL offers one of the best Demat and Trading Accounts, along with the unbeatable feature of an all-in-one trading platform. You also get access to cutting-edge research, with best stock recommendations.

Open Demat Account at IIFL