How to e-Verify ITR through Demat Account?

Introduction

The Indian Income Tax department has set a basic income exemption limit for tax filing. Once your annual income crosses this limit, you need to file your income tax return every financial year. This 2-step Income Tax Return (ITR) filing process is complete only after successful e-verification of your Income Tax Return.

Additional Read: All about Income Tax in India: Basics, tax slabs, and e-filing process

Verification of Income Tax Return

Once your ITR is uploaded on the e-filing website, the IT department gives you 120 days to get your ITR verified. If you do not complete this step within the said period, your tax filing will be invalid as per the IT laws. You can get your ITR verified online as well as offline. There is only one offline route to get the verification done, requiring you to post a copy of your ITR verification. This physical process is time-consuming and bureaucratic. So, the best option to get this verification done in a hassle-free and quick manner is the online route.

Quick Guide to e-Verify your ITR

1. Click on the 'e-Verify Return' quick link on the e-filing portal to commence the e-verification process.
2. Enter the required details like PAN, assessment year, etc.
3. Click on 'e-Verify'.
4. You have to generate your e-Verification Code (EVC) then. You can develop it by using either of these,

• Bank Account
• Net-Banking
• Aadhar Card
• Demat Account

E-Verification of ITR using your Demat Account

This is one of the popular choices for ITR verification. The prerequisite here is to have a Demat Account. If you don't have a Demat Account, you can click here to understand the Demat Account Opening Process. Only a registered broker can open a Demat Account.

Additional Read: Which Demat Account is best

With your functional Demat Account in place, you can easily e-verify your ITR through a short and straightforward process that can be clubbed into two significant steps.

Pre-validation of your Demat Account

The first step of ITR e-verification through Demat Account is prevalidating your Demat Account. It can be done as under,

• Login to your IT e-filing account.
• Click on 'Prevalidate your Demat Account'.
• Click on 'Profile settings'.
• Enter your depository name - NSDL or CDSL.
• Submit the required details such as DP ID, Demat Account Number, and Client ID. The Mobile Number and Email ID you enter in this step must be linked to your Demat Account.

This pre-validation process is approximately an hour or two long. Kindly note that you cannot change your email ID or mobile number stated in your Demat Account throughout this process. A mismatch in your Demat Records and your e-filing submission can lead to errors. If there are any errors in it, you will receive an intimation via email to rectify them.

Generating EVC

Generating an Electronic Verification Code (EVC) is the final step in the process of e-filing an ITR. An EVC is a 10-digit alphanumeric code that serves as a verification tool to identify the taxpayer. It is sent to your registered mobile number. Hence, it is essential to not change your mobile number or email ID during this step too. 

Once your depository validates your Demat Account, you can generate EVC using your Demat Account by following the process below:

• Click on the 'Generate EVC' option.
• Select 'Generate EVC through Demat Account number'.
• You will receive an EVC on your registered mobile number. Enter it in the required field to verify your ITR.

You will be intimated about the success of your ITR e-verification through 'Return successfully e-verified' displayed on your device screen. You must download the acknowledgement for future requirements if any. The acknowledgement will also be emailed to you. This marks the successful completion of the e-filing and e-verification of your ITR.

Additional Read: Features and benefits of a Demat Account

Conclusion

ITR filing and its verification may all seem to be a complicated and exhaustive process. But the new-age technologies such as the e-filing website, Demat Account, etc., have simplified it all significantly so that anyone can do it with ease. Make the most of these beneficial tools and file your returns conveniently.

 Additional Read: What are the Benefits of Filing Income Tax Return on Time?  

 Additional Read: How to file an income tax return for last year?

FAQs:

   1. Can we file ITR through a Demat account?

No, you cannot file an ITR through a Demat account. You can file your ITR through the government e-filing website or an authorized e-filing portal. However, you can use your Demat account to e-verify your ITR. In order to do so, you will have to first pre-validate your Demat account.

   2.  How can I link my Demat account to ITR?

Linking your Demat account is easy and takes a few minutes only. Here are the steps you can follow:

-    You can simply login to your ITR e-filing account.

-    Now, click on pre-validate your Demat account.

-    Next, click on profile settings and enter your depository name – either NSDL or CDSL.

-    After this, you will be asked to submit details like your DP’s name, your Demat account number, registered mobile number, and email address.

-    Once you finish the steps, your account will be linked to your ITR and can be used for e-verification when filing your taxes.

  3.  What is required for e verification of ITR through Demat account?

You need the following things for the e-verification of your ITR through a Demat account:

-   Your Demat account number and its login details like password and ID.

-   Client ID, DP ID, etc., for pre-validating your Demat account

-    Your registered mobile

-   Internet access and a smartphone, tablet, computer, or laptop.

  4.  Do I have to show the Demat account in ITR?

No, it is not mandatory to show your Demat account number while filing an ITR. However, you would have to do so if you choose to e-verify your ITR through your Demat account. Moreover, suppose you have carried out any transactions through your Demat account. In that case, you will have to specify all the transactions under the Profit and Gains section under Income from Business or Profession or as Capital Gains.

Disclaimer

ICICI Securities Ltd.( I-Sec). Registered office of I-Sec is at ICICI Securities Ltd. - ICICI Centre, H. T. Parekh Marg, Churchgate, Mumbai - 400020, India, Tel No : 022 - 2288 2460, 022 - 2288 2470. The contents herein above shall not be considered as an invitation or persuasion to trade or invest. Investments in securities market are subject to market risks, read all the related documents carefully before investing. I-Sec and affiliates accept no liabilities for any loss or damage of any kind arising out of any actions taken in reliance thereon. The contents are solely for informational and educational purpose.