New Feature on Income Tax Portal : Discard ITR Option

The Income Tax Department has launched a new feature called 'Discard Return'. This new feature allows an individual to completely discard, i.e., delete their previously filed unverified income tax return (ITR). This means that the ITR that was previously submitted by an individual but not verified can now be deleted from the income tax department's records.

This will help an individual to avoid going through the revised ITR process of correcting mistakes in the originally filed ITR. Earlier, if an individual wanted to correct a mistake in their submitted ITR, it could only be done once the original ITR was filed and verified. Once the original ITR was verified, then the individual was required to file a revised ITR to correct mistakes,

But Now using the new 'Discard Return' feature, an individual can delete their filed original un-verified ITR and file a fresh ITR.

Pre-conditions for using discard ITR feature

• The original ITR filed must not be verified using any online or offline ITR verification methods.
• The User have not sent/will not send the ITR V of the return proposed to be discarded to CPC.
• Users can avail of this option only if the ITR status is “unverified" / “Pending" for verification". 
• The original ITR must be for AY 2023-24 (FY 2022-23) and onwards. This means that any ITR filed on or from April 1, 2023, can be discarded from the income tax records.

Steps to use discard return feature

Step 1:  Login to www.incometax.gov.in
Step 2:  Navigate to 'e-File' and select 'Income Tax Return' option.
Step 3:  Click on 'e-Verify ITR'. There would be a button titled 'Discard'. 
Step 4:  For Discard Click on 'Discard' and read the terms and conditions carfully before proceeds.

Consequenses in case ITR Discard 

i)  Once this unverified ITR is discarded, it can’t be reversed. It is deemed that this ITR is not filed.

ii) This return, if filed u/s 139(1) earlier has been discarded by exercising proper discretion, considering the corresponding benefits associated with it. The issues like :

• Liability to pay interest, fee for delay in filing return, if any
• Benefits of carry forward of current year losses.

Frequently Asked Questions (FAQ's)

Q. Is it possible to discard my Original ITR filed under section 139(1) on July 30, 2023, if I haven't verified it yet?

A. Yes, 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.

Q. Is it feasible to undo the inadvertent discarding of my ITR?

A. No, if ITR is Discarded once, it can’t be reversed. Please be vigilant while availing Discarding option. If an ITR is Discarded, it means that, such ITR is not filed at all.

Q. I sent my ITR V to CPC and it is in transit and not yet reached CPC. But I don’t want to verify the ITR as I get to know that details not reported correctly. Can I still avail “Discard” option?

A. User 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. 

Q. When can I avail this “Discard” option and can I avail this “Discard” option multiple times or only once?

A. User can avail this 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”.

Q. My ITR filed for AY 2022-23 is pending for verification. Can I avail this “Discard” option? 

A. 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).