ITR Filing: Neglecting THIS step may cost you income tax refund

• June 10, 2024
• CA Chandan Agarwal's Office

Besides keeping ready all the necessary documents, including Form 16 and bank statements, to file their tax returns, taxpayers are also required to complete certain tasks beforehand. One of them is pre-validating their bank accounts in which they want to receive their tax refunds.

Income Tax Return Filing AY 2024-25: The deadline to file the income tax return for FY 2023-24 is July 31 and salaried taxpayers are waiting for their employers to issue Form 16, a key document which certifies tax deduction at source and payment to the tax department. Form 16 is usually issued by companies in the first or second week of June every year.

Besides keeping ready all the necessary documents, including Form 16 and bank statements, to file their tax returns, taxpayers are also required to complete certain tasks beforehand. One of them is pre-validating their bank accounts in which they want to receive their tax refunds.

Why should you pre-validate your bank account?

According to the Income Tax Department, only a pre-validated bank account can be nominated to receive income tax refund. Further, a pre-validated bank account may also be used by the individual taxpayer for enabling EVC (electronic verification code) for e-verification purpose. e-verification can be used for income tax returns and other forms, e-proceedings, refund reissue, reset password and secured login to e-filing account.

What are the prerequisites for a successful pre-validation?

For successful pre-validation, one must have a valid PAN registered with e-filing, and an active bank account linked with the PAN.

How do you know that the pre-validation is successful? What should you do if it is unsuccessful?

The status of the validation request is sent to the taxpayer’s mobile number and email ID registered with the e-filing portal. If the validation fails, the details are displayed under failed bank accounts. The failed bank accounts can be re-submitted for validation in case of failed bank pre-validation: Click re-validate for the bank in the failed bank accounts section and the account with status ‘validation in progress’.

What will happen if pre-validated mobile number and email ID registered with the bank is changed?

In such a case, there will be ! warning symbol next to your mismatched contact details (mobile number/email ID) in your added bank accounts section. If you wish to EVC-enable that bank account, you will need to update your contact details on the e-filing portal to match your details registered with the bank or update the mobile/email at bank’s end same as your e-filing registered primary mobile/email. Once details are updated, revalidate your bank account.

How much time does it take to pre-validate bank account once you have submitted my details?

The pre-validation process is automatic. Once your request is submitted, it is sent to your bank. The validation status is updated in your e-Filing account within 10 – 12 working days.

Steps to update existing bank account for validation:

• Visit https://incometax.gov.in/iec/foportal/;
• Login and click on ‘Profile’ section;
• Choose ‘Bank Account’ and click ‘Revalidate’
• Update bank account details like A/C No., IFSC Code, A/C type, etc.
• Click ‘Validate’.

Steps to add new bank account:

• Go to – https://incometax.gov.in/iec/foportal/
• Login and click ‘Profile’ section:
• Click on ‘My Bank Account’
• Add new bank account;
• Click ‘Validate’.

Source: https://www.financialexpress.com/money/itr-filing-neglecting-this-step-may-cost-you-income-tax-refund-3518358/