After filling in your income tax return form, the next thing to do is to verify it. The Income Tax Department will start processing your returns only when your IT form is validated. You can either authenticate your returns electronically or physically.
To physically verify your returns, you have to send a signed ITR-V to the Centralized Processing Center (CPC) in Bangalore, India.
However, you can also verify your returns online. There are four ways in which you can e-verify your returns –
1. Aadhaar OTP
3. Bank Account
4. Demat Account
In this article, we will be discussing on how to e-verify your returns using a demat account. Let us begin by understanding the procedure of opening demat account.
How to Open a Demat Account?
The opening of demat account involves the following steps:
1. You need a depository participant from the 6 SEBI registered depositories for opening a demat account
2. Choose your DP
3. Fill the application form given by them
4. Submit all the requested documents
5. After in-person verification, you will be given your account number and the client ID
6. These details are further used to access the demat account
In case you want to open a demat account online, the steps are similar. However, demat account opening online requires you to sign the Power of Attorney (POA) in-person.
Now that you have an active demat account, you can use it for verifying your returns online.
How to e-verify your returns with a demat account online?
The steps involved in the e-verification process are explained below:
1. Open the income tax e-filling official website. Log in with your username and password. In case you don’t have an account, register for a new one.
2. After you have successfully logged in, choose View Returns/Forms option on the website.
3. This will redirect you to the next page where you should choose ‘Click here to view your returns pending for e-verification.’ This will give you a list of returns that are pending for verification.
4. Choose the e-verify option.
5. In the next step, choose option four that states ‘Generate EVC through Demat Account Number.
6. Before you generate the EVC, you have to authenticate your demat account number. If the demat account is not previously verified, you will have to choose the option ‘Pre-validate your Demat Account’ on the screen.
7. When you select the depository type as NSDL, you will have to enter the DP ID, your client ID, your registered mobile number, and registered email ID. In case you choose the depository type as CDSL, you will have to enter your Demat account number, your registered mobile number, and your registered email ID.
8. Once the requested detailed are filled in, click on the ‘Pre-validate’ option.
9. You will be redirected to a page that will request you to enter your EVC number.
10. After you have entered your EVC number and clicked on Submit, you will get a success message on your screen stating ‘Return Successfully e-verified.’
Lastly, you can choose to download the acknowledgment. However, it is noteworthy that the confirmation will be sent to your registered email address as well.
The success message will indicate that you have successfully e-verified your income tax returns online.