How to E-Verify Your Income Tax Return Using a Demat Account: A Step-by-Step Guide

E-filing your income tax return (ITR) is a straightforward process that can be completed online through the Income Tax Department's portal. Once you've filed your return, it’s essential to e-verify your ITR to complete the process. E-verification of your return is an important step as it validates your return and allows the tax department to process it smoothly.

In this blog, we will guide you on how to e-verify your income tax return using your Demat Account. This option, which is available to residents having a demat account, is simple and secure.

What is E-verification of Income Tax Return?

E-verification is the process of verifying your filed income tax return electronically. If you do not e-verify your return, it is considered incomplete, and the Income Tax Department will not process your return.

To e-verify your ITR, you can use several methods like:

• Aadhaar OTP

• Net banking

• Bank account number

• Demat Account

Using your Demat Account for e-verification is a convenient and secure option, especially if you have a registered Demat account linked to your PAN.

Why Use a Demat Account for E-verification?

Using a Demat Account to e-verify your return offers several benefits:

• Convenience: If you already have a Demat account linked to your PAN, this method saves time and effort compared to other methods like Aadhaar OTP.

• Security: The verification process through the Demat account is highly secure as it involves authentication through your broker or depository participant.

• Quick Processing: It allows for quick processing of your ITR, speeding up the refund process if applicable.

Steps to E-verify Your Income Tax Return Using a Demat Account

Follow these simple steps to e-verify your income tax return using your Demat account:

Step 1: File Your Income Tax Return (ITR)

Before you can e-verify, ensure that you have successfully filed your income tax return on the Income Tax Department’s e-filing portal.

1. Visit the Income Tax e-filing portal (incometax.gov.in).

2. Log in using your User ID (PAN) and password.

3. Select the relevant assessment year and fill in the necessary details in the ITR form.

4. After completing the form, submit the return.

Step 2: Go to the E-verification Section

After filing your ITR, you will be prompted to verify your return. The e-verification process will appear as a pop-up, giving you different options to verify your return.

1. On the confirmation screen after filing your return, select the ‘E-Verify’ option.

2. You will be presented with multiple verification options such as Aadhaar OTP, Net Banking, Bank Account Number, and Demat Account.

3. Select ‘Demat Account’ as your preferred verification method.

Step 3: Link Your Demat Account

To use your Demat Account for verification, it needs to be linked to your PAN.

1. Ensure that your Demat Account is already linked to your PAN number. You can confirm this by checking with your Depository Participant (DP) or brokerage firm.

2. If the account is linked, select the ‘Demat Account’ option.

3. You will be redirected to your depository participant’s website or broker’s platform.

Step 4: Authenticate with Your Demat Account

1. Once you are redirected, you will need to log in to your Demat account using your broker’s credentials.

2. Your Demat account provider may ask you to authenticate the e-verification using your account details, such as Client ID or DP ID.

Step 5: Confirm the Verification

After successful authentication, the Demat Account provider will confirm the e-verification request. You will receive an acknowledgement message from the Income Tax Department stating that your Income Tax Return has been successfully e-verified.

Things to Keep in Mind When Using Demat Account for E-verification

1. Linking Demat Account to PAN:

   • Ensure that your Demat Account is linked to your PAN. This is essential to complete the e-verification process. If your Demat account is not linked to your PAN, the option to verify via Demat account will not be available.

2. Broker or DP Verification:

   • The e-verification process will be completed only if your Demat account is with a depository participant (DP) who supports this service.

3. Timely E-verification:

   • The e-verification should be done within 120 days from the date of filing the return. If the e-verification is not completed within this time frame, your return will not be processed, and it will be considered as invalid.

4. Secured Login:

   • Ensure you use the correct login credentials for your Demat account. The security of your Demat account plays a crucial role in protecting your tax information.

Benefits of Using Demat Account for E-verification

• Faster Processing: E-verification through a Demat account is one of the quickest methods, allowing for faster processing of your return.

• No Need for Physical Documents: This method eliminates the need to send physical documents (like the ITR-V form) to the Income Tax Department.

• No Requirement for Digital Signature: If your Demat account is linked with your PAN, you can skip using a Digital Signature Certificate (DSC), simplifying the process.

Conclusion

E-verifying your income tax return is an essential step after filing your taxes. If you have a Demat Account linked to your PAN, using it for e-verification is a convenient and secure way to complete the process. It saves you time, eliminates paperwork, and ensures that your return is processed quickly.

If you are unsure about the linking of your Demat account or the e-verification process, it’s always a good idea to consult with a tax advisor to ensure you complete all necessary steps accurately.

By following the steps outlined above, you can easily verify your return and move forward with a smooth and hassle-free tax filing experience.

FAQs on E-verifying Your ITR with Demat Account

1. Can I e-verify my return using any Demat account?

   • You can only use a Demat account linked to your PAN to e-verify your return.

2. What if I don’t have a Demat account?

   • If you don’t have a Demat account, you can use alternative methods like Aadhaar OTP, Net Banking, or Bank Account Number for e-verification.

3. Do I need a Digital Signature for e-verification using Demat account?

   • No, you do not need a Digital Signature if you are verifying via Demat account.

4. What happens if I don't e-verify my return?

   • If you fail to e-verify your return, it will be considered invalid, and the Income Tax Department will not process your return. You will need to resend the verification documents (like ITR-V) via post.