What happens after you have filed an ITR?

Shweta | Last updated: 07 December 2020

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Quick Summary

After filing your Income Tax Return (ITR), the crucial next step is verification, which must be completed within 120 days of filing to ensure its validity. The Income Tax Department then processes your return, a stage known as assessment. This can involve a summary assessment for preliminary checks or a more detailed regular assessment (scrutiny). Depending on the outcome, you might receive an intimation indicating no demand or refund, a refund due, or a demand for additional tax. If you disagree with the outcome, there are avenues for grievance redressal through appeals to higher authorities.

An Income Tax Return is a prescribed form in which an assessee declares the income earned and tax paid on such income during a given financial year. The Income Tax Act, 1961 makes it mandatory for certain groups falling within the prescribed tax slabs to file ITR by the end of the financial year. Th

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FAQ :

The first step after filing an ITR is verification. You must e-verify your return within 120 days of filing, or it will become invalid. This can be done online or by sending a signed ITR-V to the Central Processing Centre.

Once your ITR is filed and verified, the Income Tax Department's Central Processing Centre (CPC) processes and evaluates it for correctness. This review process is called 'Assessment'.

The main types of assessments include Summary Assessment (preliminary checking), Regular Assessment (detailed scrutiny), Reassessment (for escaped income), Block Assessment (for hidden income), and Best Judgement Assessment (when taxpayer non-compliance occurs).

A Summary Assessment can result in an intimation with no demand or refund, an intimation determining a refund, or an intimation determining a demand if discrepancies are found.

If you are not satisfied with the order, you can appeal to higher authorities. The first appellate authority is the Commissioner of Income Tax (Appeals), followed by the Income-tax Appellate Tribunal, the High Court, and the Supreme Court.

It is advisable to keep important tax-related documents such as Form 16, 16A, 12B, advance tax payment challans, ITR-V acknowledgment, tax exemption documents, and bank account statements readily available.