The facility allows taxpayers to completely remove an unverified ITR from the income tax portal and submit a fresh return with corrected details.
However, taxpayers should note that once an ITR is discarded, it is treated as if it was never filed. If the replacement return is submitted after the applicable deadline, it will be considered a belated return and may attract late filing consequences.
What is the Discard Return facility?
The Income Tax Department allows taxpayers to discard an original, belated or revised ITR as long as it has not been verified.
The option can be useful when taxpayers identify mistakes such as incorrect income details, missed deductions, wrong tax calculations or other errors before completing verification.
After discarding the return, the earlier filing is removed from the taxpayer’s records on the portal, allowing a new ITR to be filed.
When can taxpayers discard an ITR?
The discard option is available only before verification of the return.
Once a taxpayer completes e-verification, the return cannot be discarded. The Income Tax Department has also advised taxpayers not to use this option if they have already sent a physical copy of ITR-V to the Centralised Processing Centre (CPC).
There is no limit on the number of times taxpayers can use the discard facility, provided the return remains unverified.
The facility is available for ITRs filed from Assessment Year 2023-24 onwards and can generally be used until the applicable filing deadlines under Sections 139(1), 139(4) and 139(5).
How to discard an ITR?
Taxpayers can follow these steps:
- Log in to the Income Tax e-filing portal.
- Go to e-File and select Income Tax Return.
- Open the e-Verify ITR section.
- Select the return and click on ‘Discard’.
- Confirm the action.
Why can discarding an ITR impact filing status?
Discarding an ITR removes the earlier filing completely from the system. This means the discarded return will not be considered while checking whether a taxpayer has filed the return within the deadline.
For example, if a taxpayer files an original return before the due date but later discards it, the fresh return must also be filed within the deadline to retain its original filing status. If the new return is filed after the due date, it will be treated as a belated return.
Discarding ITR vs revised return: What is the difference?
A revised return under Section 139(5) allows taxpayers to correct mistakes while keeping the original return on record. The taxpayer files an updated return with revised details.
The Discard Return facility, on the other hand, removes the unverified return completely. The taxpayer starts afresh and files a new return with corrected information.
Therefore, taxpayers should use the discard option carefully, especially close to the filing deadline, as a fresh filing after the due date may change the return category from original to belated.
Also read: ITR filing: Know these second home tax rules before submitting your return
