How To Use a Demat Account to eVerify Your Return
The government stipulates the payment of taxes on income such that it can offset the costs associated with providing basic services for its citizens. These services include but aren’t limited to providing them with paved roads, building highways, and creating government hospitals. Thus far, a little over 1.5 Crore Indian citizens actually pay income tax which accounts for only a little over 1 percent of the country’s population and 1.6 percent of the country’s adult population.
For those who pay income tax, after they file an income tax return (or ITR), taxpayers are encouraged to verify the same such that the Income Tax Department can process it. Currently, taxpayers may verify their return in one of two ways mentioned below.
1. The return can be verified digitally via an Aadhar OTP, Net banking, Bank Account or Demat account.
2. The return can be verified by sending a signed ITR -V to the Centralized Processing Centre in Bangalore.
- How to e-Verify an ITR with a Demat Account?
In order to e-verify your ITR, you must first generate an electronic verification code (or EVC). This is a 10-digit alphanumeric code that is delivered to the taxpayer’s registered cellphone number such that their identity can be verified. The following steps must be followed in order to have your ITR e-verified using a Demat account.
- Visit the income tax e-filing website and sign in to your account. Create an account if you don’t have one.
- Click on the icon that reads “View Returns / Forms”.
- Click on the signage that allows you to view your returns which are pending for e-verification. Once these are visible, select the e-verify button.
- Next, choose the “Generate EVC through Demat account number” option that appears on your screen.
- In order for this number to be generated, your Demat account must first be pre-validated.
- Based on the depository type selected, the following actions will be taken i.e.
- NSDL: DP ID, client ID, mobile number, and email address are to be filled out and prevalidated.
- CDSL: Demat account number, mobile number, and email address are to be filled out and prevalidated. - Now, the EVC is generated and sent to the mobile number tethered with the bank.
- You are then required to fill out the EVC number and click the ‘submit’ option.
After following these steps you will read a success message indicating that you have completed both, e-filing and e-verifying your income tax return.
Conclusion
This article helped explain how to e-verify your return using a Demat account. It has never been easier to open a demat account which is useful as it allows for shares to be traded online with ease. Prior to making any trading decisions, you are advised to do some due diligence on the merits of the same.
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