E-verify Your Return Using a Demat Account

Every Indian citizen is liable to pay taxes as per their tax obligation and applicable tax bracket slabs. In the process of filing income tax, the first step is to file the returns. However, your taxes are not filed completely until you verify the filed returns. Earlier, the verification process was tedious, requiring 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 your returns 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 on the web portal of the Income Tax department at https://incometaxindiaefiling.gov.in/. While registering, your Permanent Account Number (PAN) will be your user ID, and you can select a password of your choice. Once you have opened the account, log in to the portal.
• Step 2: Now go to your account options and click on ‘view returns’.
• Step 3: You can now see on your screen various sub-heads like ITR/Form of different financial years, filing type, acknowledgement number, PAN, the status of your returns and the option to view the returns pending for e-verification. Among the various options, select the option to e-verify.
• Step 4: You will now get an option for generating Electronic Verification Code (EVC) through your Demat Account, bank account number, and net banking. Select the option to e-verify through Demat Account.
• Step 5: Now, select the option to prevalidate your Demat Account.
• Step 6: Next, 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 Participant’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 have an option to generate EVC through your verified mobile number. After confirming, you will receive an EVC on your phone number.
• Step 8: Then, submit the Electronic Verification Number. 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 generate a new EVC.
• Step 9: Lastly, you will receive an acknowledgement 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.

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

Using your demat account to e-verify your ITR returns has several benefits:

• Hassle-free and convenient: Using your Demat Account for e-verification is a paperless process, which you can finish within minutes. This mitigates the cumbersome paperwork and time-consuming processes like downloading, signing and posting the physical copy of your ITR
• Quick processing: While the procedure of sending ITR forms physically and its subsequent processing by the Income Tax department can take days, e-verification through the Demat Account is processed quickly. Refunds, if any, are also transferred seamlessly to your account.
• Safe: E-verification of ITR through your online Demat Account ensures confidentiality and utmost safety. The digital platform has multiple levels of protection, mitigating the risk of your ITR being lost in transit.

Conclusion

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. However, the e-verification process is much more effective, quick and convenient. However, if you make use of the process, you will have to open a Demat Account and Trading Account with a trusted and reliable broker. IIFL offers one of the best Demat and Tranding account, along with the unbeatable feature of an all-in-one trading platform. With IIFL’s demat and trading account, you also get access to cutting-edge research with the best stock recommendations.