Discard Income Tax Return: Purpose, Benefits & How to Use Discard Return Options

The Discard Income Tax Return option allows taxpayers to delete an unverified ITR and file a fresh return if they notice any mistake. Initially, correcting errors required verifying the original return first, followed by filing a revised ITR. With this feature, you can simply discard the unverified return and submit a new accurate one, making the ITR filing process quicker and easier.

Purpose of Discard Return in Income Tax

Since its launch, the discard option has proven to be very helpful. While it has made the overall ITR filing process easy for individuals, here are some key points why such a feature was needed.

Easily Correcting ITR Mistakes

The main purpose of this option is to make the ITR filing process easy. While people from all around the country filed an ITR, a more simplified process was needed. This option allows individuals to easily delete an entire ITR record and file a new one.

As long as the ITR filed remains unverified, an individual can use the discard return option as many times as required until they have filed the perfect ITR.

Eliminating the Use of Revised ITR Option

Another reason behind introducing this option is to reduce the use of the “Revised ITR” option. While one had to go through the entire revised ITR option to correct even the slightest mistakes, the discard option allows people to delete an entire record. Now, they can easily file a fresh ITR by correcting their mistakes without having to use the revised ITR option.

How to Use the Discard Return Option

Here is how to use the discard return option in the income tax filing portal:

• Visit the official website of the Income Tax Department of India.
• Log in to your portal with valid credentials.
• Go to the e-file option.
• Now, choose the Income Tax Return option.
• Go to the e-verify ITR option.
• Here, you will find the new option “Discard Return.” Choose this option to delete your current ITR application.  

When you click on the “Discard Return” option, the website asks you to delete your current ITR application. Just confirm by clicking on the “Yes” option, and your original ITR will be deleted immediately. 

When can you Discard the ITR?

As per the Income Tax Department, the choice of abandoning income tax returns is now available from AY 2023-24. That is, if you submit returns for FY 2022-23, you may abandon the returns and later submit a new ITR. The choice of abandoning returns submitted u/s 139 (1), 139 (4) and 139 (5) will be made available up to 31st Dec of the present assessment year.

There is no restriction on availing the discard return option. You can return the ITR for as many times as you wish. The option is possible if your ITR status is 'unverified' or 'pending for verification'.

Why Do You Need To Avoid Mistakes When Filing ITR? 

There are some restrictions to filing revisions and discarding the returns. You cannot discard the ITR after it has been authenticated or file for revisions at the culmination of an assessment year. If you do not rectify your errors, there are stringent legal and financial penalties.

Income Tax Department has issued warnings that it will take immediate action against bogus deductions and wrong reporting of income. Short reporting of income under Section 270A can result in a penalty of 200% of your tax liability that is assumed to be evaded. The department can also prosecute you.

Discard Return vs Revised Return

While discard return and revised return may sound the same at first, both options are entirely different from each other. The discard income tax return option allows an individual to permanently discard or delete an existing e-filed ITR. By using the discard return option, one can simply remove their unverified ITR from the income tax database. Whereas the revised return option allows individuals to rectify their errors once they submit their ITR. Hence, one must not confuse the discard income tax return option with the revised return options since they are both different ends of the same rope.

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