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
- 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.
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.