The Central Board of Direct Taxes has issued income tax returns validation rules for ITR-1, ITR-2 and ITR-4 for the Assessment Year 2023-2024.
The ITR-1, ITR-2 and ITR-4 validation rules published by the Income Tax Department contain a list of categories of defect, Category A Rules and Category D Rules.
The Income Tax Department has provided free return preparation software in downloads pages which are fully compliant with data quality requirements. However, there are certain commercially available software or websites that offer return preparation facilities as well. In order to ensure the data quality of ITRs prepared through such commercially available software, various types of validation rules are being deployed in the e-Filing portal, so that the data which is being uploaded are accurate and compliant to the validation rules to a large extent.
The taxpayers are advised to review these validation rules to ensure that the software used by them is compliant with these requirements, to avoid rejection of return due to poor data quality or mistakes in the return. The software providers are strictly advised to adhere to these rules to avoid inconvenience to the taxpayers, who may use their software.
Software providers may please note that these validation rules will be strictly monitored and enforced, and each rule will have to be complied strictly. In case of violations, the concerned return preparation utility/ software is liable to be blacklisted without any notice and such blacklisting will be published on the e-filing website.
“No return using blacklisted software will be permitted to be uploaded till the time the software provider is able to provide details of correction in software. This may cause avoidable inconvenience to the taxpayers and loss of reputation to software providers for which the Income Tax Department will not be responsible”, the validation rules warned.
Notably, Wherever not specifically mentioned, rules related to deduction refer to the case where New Tax regime has not been opted i.e., Option for the current assessment year has been selected as ‘Not Opting’ or ‘Opt Out’.
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