It is mandatory to verify the Income Tax Return (ITR) after the user has filed it. The Income Tax Department (ITD) starts processing the return after the verification process is complete. The ITD has given various methods to verify returns. The taxpayer can either verify their return electronically or physically. e-Verifying returns through a Demat Account is one of the methods. Furthermore, the verification process involves generating an Electronic Verification Code (EVC). Therefore, it is important to prevalidate the Demat Account to generate the EVC. The service of “My Demat Account” allows the user to:
- Add a demat account
- Remove an existing demat account
- Enable or Disable EVC
- Update Primary Contact Details as per the contact details linked with the demat account
- Re-validate failed demat account
Prerequisites
- Registered user on the e-Filing portal with valid user ID and password
- Valid demat account with NSDL or CDSL linked with PAN
- For NSDL Depository type, you must have a DP ID and Client ID
- For CSDL Depository type, you must have a demat account number
- Valid mobile number and email ID linked with demat account
Steps To Pre-Validate Demat Account
- Login to efiling portal
Login to the Income Tax efiling portal.
- My Profile
Click on the my profile option from the top right.
- Demat Account
Click on the Demat account option from the left.
- View Demat Accounts
You will be able to view the list of Added, Failed and Removed Demat Account along with the option to Add Demat Account.
FAQs
EVC can be generated through your Demat account only if your details are validated by your depository. Go to “Generate EVC” > “Generate EVC through Demat account”. An EVC will be sent to your registered mobile number.
If your Demat account number starts with alphabets then it is provided by NSDL. While if your Demat account number starts with Numerics then it is provided by CDSL.
Before e-Verifying ITR through a bank account, you first need to make sure that your bank account is pre-validated. For pre-validation, you have to select your bank name, enter the bank account number, Account type, IFSC code and your registered mobile number and prevalidate. Note that, for the pre-validation, your name, PAN and mobile number must match with the bank records.
No. EVC can be enabled for only one demat account at any point of time. If you try to enable EVC for another demat account, then you will receive a message to disable EVC option for the existing account. Once you disable EVC option from the existing account then you can enable it for another account.
In case the validation fails, a message with Reason of failure along with the action to be taken will appear on the screen. You can re-validate, update the details and submit request again.
Hey @TeamQuicko
Can you tell me about ITD’s new ITR filing utility for AY 2021-22?
Hey @HarshitShah
To improve the tax filing process, the Income Tax Department has decided to do away with the excel and java-based utility and has launched a new offline JSON-based utility for the AY 2021-22. The new utility will help taxpayers import prefilled data and edit it before filing the income tax return (ITR).
The taxpayers can download the pre-filled data from the income tax e-filing portal and fill in the rest of the data. This imported prefilled data can be edited to change basic information such as address and all. Currently, the utility can be used to file ITR1 to ITR 4. ITD has also released a step-by-step guide to using the utility.
Hope this helps!![:slight_smile: :slight_smile:](https://qna.tax/images/emoji/twitter/slight_smile.png?v=9)
Is it possible to file ITR online without an account on the Income Tax e-filing portal?
What should be done in case of discrepancies in actual TDS and TDS credit under Form 26AS?
Hey @Amitabh_Verma
It is mandatory to create an account on the Income Tax e-filing portal to file your ITR online. It is a hassle-free quicko process. One can register on the portal by providing relevant details such as user type, PAN, first name, surname, date of birth, and fill in the registration form.
Hey @Niraj
Many times mismatches and discrepancies in actual TDS and TDS credit under Form 26AS happen because of wrong information provided in the TDS return. One can approach the employer/deductor to file a revised TDS return after making the necessary corrections.
The income-tax department allows an assessee to mention the reason for mismatch in the online portal in answer to a notice sent by them.
Hope this helps!![:slight_smile: :slight_smile:](https://qna.tax/images/emoji/twitter/slight_smile.png?v=9)
Hi, actually I filed ITR 1(A.Y. 2013-14) due to notice served in Jan month.
The ITR is pending for verification. Ask the options aren’t available for me client i.e Aadhar verification,evc etc. Only thing is I got my clients DSC. but option of DSC for e-verification is not showing. I can’t send CPC to Bengaluru since it will take time. How can I use DSC to e-verify my already filed return
Hi @Arsheen
The option to e-verify ITR using DSC is to be selected while filing. Once you have filed your ITR only option available for e-verification is EVC/Aadhar OTP or sending ITR V to CPC Bangalore. You have 120
days from the date of e-Filing to e-verify your ITR.
So if 120 days are not over you can send the signed ITR V to CPC Bangalore to get it e-verified and processed.
Hope this helps![:slightly_smiling_face: :slightly_smiling_face:](https://qna.tax/images/emoji/twitter/slightly_smiling_face.png?v=12)
Hi @Sharath
It is suggested to file ITR as NRI in India if you have trading transactions even if there are losses.
If you do not file ITR then there are high chances of your PAN getting flagged by the IT department for non-filing of ITR.
Also, If you file the ITR on time you can take benefit of carry forwarding the losses and setting off those losses against the profits in future years.
I have started an HUF by infusing funds by collecting gifts from HUF members. If I invest in Shares, Equity MF, from that Capital (Collected as gifts from members), and earn income in the name of HUF, will that income be clubbed with the income of the members?
In a way that will be the outcome of the business (trading and investing of shares) done by HUF. And there will be a degree of efforts and luck involved, not a fixed income instrument as FD, etc.