What Is Income Tax Dept's ‘Discard ITR’ Facility? Explained In 8 Key Points

Income Tax Dept's ‘Discard ITR’ Facility can be availed only from AY 2023-24 onwards for the respective ITR.

New Delhi: Bringing ease to hundreds of thousands of income tax payers, the income tax department has introduced a new feature on its website called the ‘Discard ITR’ option. This feature allows taxpayers to discard their previously filed Income Tax Returns (ITR) which has been unverified. 

What Is Income Tax Dept's ‘Discard ITR’ Facility? Explained In 8 Key Points

1. ITR filers can find Discard option in this path: www.incometax.gov.in → Login → e-File → Income Tax Return → e-Verify ITR → “Discard”

2. User can avail this option only from AY 2023-24 onwards for the respective ITR. This option will be  available only till time limit specified for filing ITR u/s 139(1)/139(4) /139(5) (i.e., 31st December of respective AY as of now).

3. User can avail the option of “Discard” for the ITRs being filed u/s 139(1) /139(4) / 139(5) if they do not want to verify it. "User is provided 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), it would attract implications of belated return like 234F etc., Thus, it is advised to  check whether the due date for filing the return u/s 139(1) is available or not before discarding any  previously filed return," says the ITR department's FAQ section.

4. If, you have Discarded ITR once, even by-mistake, it is not possible to reverse it. If an  ITR is Discarded, it means that, such ITR is not filed at all.

5. An ITR filer, who has uploaded the return data earlier, but has made use of the facility to discard such unverified  return is expected to file subsequent an ITR later on, as it is expected that he is liable to file the return of income by way of his earlier action, says the ITR department's FAQ section.

6. ITR filers shall not discard such returns, where the ITR-V has already been sent to CPC. There is an undertaking to this effect before discarding the return. 

7. Users can avail this “Discard” option only if the ITR status is “unverified” / “Pending for verification”. There is no restriction on availing this option multiple times. Precondition is “ITR status” is “Unverified” / “Pending for verification.

8. If an ITR filer discards the Original ITR filed u/s 139(1) for which due date u/s 139(1) is over, they are required to  select 139(4) while filing subsequent return. As there is no prior valid return exist, date of Original ITR /  Acknowledgement number if Original ITR fields are not applicable. Further, if user wants to file revised return in future, he needs 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," says the ITR department's FAQ section.