Discard Return

By: Mr. Prasanna Ravikant Bhat - 1st December, 2023

The Income Tax Department has recently launched a new feature called 'Discard Return'. This feature allows
an individual to completely discard, i.e., delete their previously filed unverified income tax return (ITR).
This new feature will help an individual to avoid going through process of filing revised ITR for correcting
mistakes in the originally filed ITR. Till now, if an individual wanted to correct a mistake in their originally filed
ITR, it could only be done once the original ITR was filed and verified.
The new 'Discard Return' feature, allows an individual to delete their original filed ITR which is un-verified and
file a fresh ITR.

CONDITIONS FOR USING DISCARD ITR FEATURE: -

a) The original ITR filed must not be verified by any method, i.e., either online or offline ITR verification
method.
b) The original ITR filed must be for AY 2023-24 (FY 2022-23) and onwards only. Thus, any ITR filed on
or from April 1, 2023, can be discarded.

STEPS TO DISCARD RETURN: -
Step 1: Login to www.incometax.gov.in with your Income Tax credentials.
Step 2: Click on 'e-File' and select 'Income Tax Return' option.
Step 3: Click on 'e-Verify ITR'.
Step 4: Click on the button titled 'Discard'.

Once you click the ‘Discard’ button, and after confirmation, your return is discarded.

ANSWERS TO FREQUENTLY ASKED QUESTIONS:

1. I had filed my original return u/s 139(1) on 10th July 2023 but didn’t verify the return till 31st
   July 2023. Can I Discard it? If yes, then under which section?
   Yes, you can avail the option of “Discard” for the ITRs being filed u/s 139(1) /139(4) / 139(5) if you
   have not verified it. You are provided with a facility to file an ITR afresh after discarding the previous
   unverified ITR. However, if the “ITR filed u/s 139(1)” is Discarded and the subsequent return is filed
   after the due date u/s 139(1) i.e., 31st July, the due date for filing the ITR, it would attract implications
   of belated return like 234F, carry forward of certain losses will also not be allowed, etc. Thus, it is
   advisable to discard an unverified return on/before the due date.
   If an individual has discarded his/her filed (but not verified) original ITR (say, filed on July 10, 2023)
   after July 31, 2023, and then files a fresh ITR on August 2, 2023, then the filed fresh ITR would be
   filed under section 139 (4) i.e., it would become a belated ITR. However, if the individual has
   discarded their filed (but not verified) original ITR before July 31, 2023, and also filed a fresh ITR
   before July 31, 2023, then the filed ITR would be filed under section 139 (1) i.e., it would be an original
   ITR.
2. I Discarded my ITR by-mistake. Is it possible to reverse it?
   No, it can’t be reversed. If an ITR is Discarded, it means that such ITR is not filed at all.
   
   
3. Is it mandatory to file subsequent ITR if I “Discarded” my previous unverified ITR?
   Yes, you are liable to file a fresh Income Tax return of income as you had discarded the previous
   unverified ITR.
   
   
4. I had sent my ITR V signed copy to CPC and it is in transit and has not yet reached CPC. But I
   don’t want to verify the ITR as I got to know after the return was filed that details were not
   reported correctly while filing the return. Can I avail “Discard” option?
   You shouldn’t discard such returns, where the ITR-V signed copy has already been sent to CPC. This
   is because there is an undertaking to this effect before discarding the return.
   
   
5. Can I use this “Discard” option multiple times or only once?
   There is no restriction on availing this option multiple times. Only condition the “ITR status” should be
   “Unverified” / “Pending for verification”.
   
   
6. I had filed my ITR for AY 2022-23 and it is seen as pending for verification. Can I avail this
   “Discard” option?
   You can only use this option for and from AY 2023-24. This option will be available only till the time
   limit specified for filing ITR u/s 139(1)/139(4) /139(5) (i.e., 31st December of respective AY as of now,
   unless extended by CBDT).
   
   
7. I had filed my Original ITR 1 on 30th July 2023, afterwards discarded it on 21st August 2023
   and I want to file now a subsequent ITR on 22nd August 2023. Which section should I select?
   If you discard the Original ITR filed u/s 139(1) after the due date u/s 139(1), then you are required to
   select 139(4) while filing a subsequent return as it would be a belated return. As there is no prior valid
   return existing, date of Original ITR / Acknowledgement number if Original ITR fields are not
   applicable. Further, if you want to file revised return in future, then you need to provide details of
   “Original filing date” and “Acknowledgement number” of the valid ITR i.e., ITR filed on 22nd August
   2023 for filing revised ITR.
   
   
8. What are the consequences of filing return u/s 139(4)?
   If the “ITR filed u/s 139(1)” is Discarded and the subsequent return is filed after the due date u/s
   139(1), i.e., 31st July, the due date for filing the ITR, it would attract implications of belated return like
   fee u/s 234F, carry forward of certain losses will not be allowed, etc.
9. What is the concept of condonation request? Is it helpful?
   If an individual filed his original ITR for AY 2023-24 (FY 2022-2023) on July 10, 2023, under section
   139 (1), but has not verified the filed ITR by August 12, 2023. In such a case if he uses the 'Discard
   Return' feature to delete this original ITR, then a new ITR would have to be filed under section 139 (4)
   as the return will be filed after the due date. A fee of Rs 5,000 will be applicable as well.
   However, as per the current income-tax laws, the last date to file the original ITR is July 31. Once the
   return is filed, an individual gets 30 days to verify their ITR from the date of submission of ITR. If an
   individual misses the last date to verify their ITR, then an individual can file a condonation of delay
   request with the Income Tax. If the income tax department accepts the request, then an individual can
   verify their ITR. Though this is dependent on the acceptance of request by the Income Tax
   Department, if the condonation is granted the return will be treated as having been filed in time. Thus,
   no penalty u/s 234F can be imposed, carry forward of losses will also not be jeopardised.

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