Paperless Tax Filing: CBDT’s Updated ITR-V and Acknowledgement Forms for AY 2025-26 Explained

The Central Board of Direct Taxes (CBDT) has revealed important updates to the Income Tax Return Verification Form (ITR-V) and the ITR-Acknowledgement form for the Assessment Year (AY) 2025-26. These modifications, announced through Notification No. 45/2025 on May 7, 2025, are designed to optimize the e-filing and verification processes, in line with the government's goal of a paperless tax administration. The revisions are part of the Income-tax (Seventeenth Amendment) Rules, 2025, and will take effect retroactively from April 1, 2025.

This initiative aims to improve the efficiency, security, and convenience of income tax return submissions for millions of taxpayers. Below is a detailed overview of the main changes and their effects:

Updated ITR-V: Increased Verification Options

The ITR-V form is vital for taxpayers who file their income tax returns electronically without verifying them using an Electronic Verification Code (EVC) or Aadhaar OTP at the time of submission. The updated ITR-V form for AY 2025-26 presents a more detailed and secure layout.

Key features of the updated ITR-V include:

• Detailed Information: The form will now contain essential details such as the e-filing Acknowledgement Number, PAN, Assessment Year, and the relevant section under which the return is filed.
• Affirmation Statement: A clear statement for the taxpayer to confirm the accuracy and completeness of the return.
• Mandatory Verification: The form reiterates the necessity for verification through digital signature, EVC, or Aadhaar OTP. If electronic verification is not completed, a signed physical copy of the ITR-V must be dispatched to the Centralized Processing Centre (CPC) in Bengaluru via speed post within 30 days of filing electronically.
• Improved Security Features: The updated form will include the IP address and timestamp of the submission, in addition to a system-generated barcode/QR code for better authentication and tracking.

The notification highlights various methods of electronic verification available, such as Aadhaar OTP, Net Banking login, and EVC generated via pre-validated bank accounts, demat accounts, or bank ATMs. This shift towards electronic verification aims to diminish reliance on physical submissions and speed up the processing of returns.

Updated ITR-Acknowledgement: Digital Filing Evidence

The ITR-Acknowledgement form acts as a digital receipt for income tax returns that have been filed and verified electronically. The revised format for AY 2025-26 offers more extensive details about the submitted return.

Key features of the new ITR-Acknowledgement:

• Comprehensive Return Overview: The acknowledgement will encompass details such as PAN, Name, Address, Taxpayer Status, Form number, Filing Section, and the Acknowledgement Number.
• Financial Overview: It will offer a summary of the submitted return, highlighting total income, MAT/AMT applicability (Minimum Alternate Tax/Alternate Minimum Tax), net tax liability, interests, fees, taxes remitted, and information about any refunds or outstanding tax amounts. For relevant forms like ITR-7, it will also include information on accreted income and taxes under Section 115TD.
• Verification Method and Timestamp: The form will clearly specify the electronic verification method employed and the date and time of electronic submission.
• QR Code for Validation: A QR code generated by the system will be included for simplified authentication and access to return information.
• Clear Instruction: The acknowledgment form will explicitly mention that there is no need to send it to CPC, Bengaluru, emphasizing its function as a digital proof of successful filing and verification.

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Implications for Taxpayers

These updates highlight the CBDT's dedication to enhancing the digitization of tax administrative processes. For taxpayers, the modifications signify:

• Greater Focus on e-Verification: Taxpayers are encouraged to utilize available electronic verification methods to eliminate the necessity of sending a physical ITR-V, saving time and mitigating the risk of delays or loss during transit.
• Clearer Documentation: The revised Acknowledgment form offers a more detailed summary of the filed return, acting as a thorough record for the taxpayer.
• Faster Processing: The improved security features and digital format of both forms are expected to lead to expedited processing of income tax returns by the CPC.
• Compliance with the 30-Day Window: Taxpayers who choose to submit a physical ITR-V must strictly follow the 30-day deadline from the e-filing date to ensure that their return is recognized as filed on the e-filing date. Delays past this period may result in late filing repercussions.

The CBDT has clarified that the retrospective applicability of these revisions from April 1, 2025, will not negatively impact taxpayers, facilitating a smooth transition to the new formats for the AY 2025-26 filing season.

Taxpayers are encouraged to utilize the most current versions of the ITR-V and Acknowledgement forms as designated by the CBDT for AY 2025-26 and to become acquainted with the updated verification protocols to ensure a hassle-free and compliant tax filing process.

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