1. Verify Your Return Immediately
This is the most critical step. An ITR that is filed but not verified is considered invalid. The Income Tax Department will not process a return until it is verified. You have a 30-day window from the date of filing to complete this. The quickest way
is e-verification. There are several methods available on the e-filing portal. You can use an Aadhaar-based One-Time Password (OTP), which is sent to the mobile number registered with your Aadhaar. Other popular digital options include using your pre-validated bank account, a demat account, or your net banking login to generate an Electronic Verification Code (EVC). Some banks also offer the option to generate an EVC through an ATM. If you cannot use any of these methods, you can physically send a signed copy of the ITR-V acknowledgment to the Centralized Processing Centre (CPC) in Bengaluru via speed post.
2. Check Your ITR Processing Status
After you have e-verified your return, the tax department begins processing it. You can and should track this progress. Log in to the Income Tax e-filing portal and navigate to the 'e-File' section, then 'Income Tax Returns', and finally 'View Filed Returns'. Here, you can see the status of your return for the relevant assessment year. The status will move through various stages, such as 'Successfully e-Verified', 'Processed', or in some cases, 'Return Defective'. Checking this status helps you know that your return has been accepted and processed without any issues. If the status shows a defective return, it means there is an error that you need to correct and resubmit.
3. Track Your Refund Status
If you have claimed a refund in your ITR, the next step is to track its status. You can do this through the income tax portal under 'My Account' and then 'Refund/Demand Status'. This will show you the current stage of your refund, from its approval to its issuance. The status can also be checked on the TIN-NSDL website. A common reason for refund delays is incorrect bank account details. Before filing, ensure that the bank account you've provided for the refund is pre-validated on the e-filing portal. An incorrect account number or IFSC code can cause your refund to fail, so it's a good practice to double-check this information.
4. Look Out for Intimation Notices
Once your return is processed, the Income Tax Department will send an intimation notice under Section 143(1) to your registered email address. This document is a summary of the department's assessment of your return. It will show the income and tax details you declared and compare them with the department's calculations. The intimation can result in one of three outcomes: 'No Demand, No Refund', which means your calculation matches the department's; a refund determination, if you've paid excess tax; or a tax demand, if you have underpaid. It is crucial to read this notice carefully to ensure there are no discrepancies. If there is a tax demand, you must pay it promptly to avoid interest and penalties.
5. Securely Store Your Documents
Your tax-related tasks are not over until you have properly stored all relevant documents. It is essential to keep a copy of your filed ITR, the ITR-V acknowledgment, Form 16, Form 26AS, Annual Information Statement (AIS), and proofs for all deductions and exemptions you have claimed. This includes rent receipts, investment proofs, home loan statements, and donation receipts. While the Income Tax Act doesn't specify a single retention period for all documents, tax experts generally advise keeping these records for at least eight years from the end of the relevant assessment year. In some cases, such as those involving foreign assets, the recommended retention period can be as long as 16 years. These documents are vital if the department issues a scrutiny notice and asks for clarifications in the future.
