What is e-Verification of ITR?
Filing your Income Tax Return (ITR) online is only the first step. Once filed, the return needs to be verified, and e-Verification is the simplest, fully digital way to do this. Without verification, your return is treated as invalid by the Income Tax Department, even if it was filed on time.
The Income Tax Department provides an Electronic Verification Code (EVC) mechanism through which you can verify your return instantly, without printing or posting any physical document (ITR-V) to CPC Bengaluru.
Important Deadline: As per official guidelines, the time limit for e-verification or submission of ITR-V is 30 days from the date of filing the return. Failing to verify within this window can render your ITR invalid, potentially leading to interest under Section 234A and late filing penalties.
Why use a Demat Account for e-Verification?
There are multiple methods available to e-verify your ITR - Aadhaar OTP, net banking, bank account EVC, and Digital Signature Certificate (DSC). The demat account EVC method is particularly useful for investors and traders who:
- Already have an active demat account with NSDL or CDSL
- Do not want to use net banking or share banking credentials
- Have not linked their PAN to Aadhaar or prefer an alternative
- Trade in stocks, mutual funds, or other securities
- Want a quick, paperless, and secure process
Since a demat account is linked to your PAN and your registered mobile number, the EVC generated through it provides strong identity verification, making it a reliable and accepted method under the Income Tax Act.
Prerequisites and Eligibility
Before you e-verify your ITR through your demat account, make sure the following conditions are met:
- Registered on e-Filing Portal: Valid login credentials at incometax.gov.in
- ITR already filed: A return must be submitted before it can be verified
- Active Demat Account: Linked to your PAN with the correct mobile/email
- Pre-validated & EVC-enabled: Demat account pre-validated on the e-Filing portal
Key prerequisite: Your demat account must be pre-validated and EVC-enabled on the Income Tax e-filing portal before you can use it to generate an EVC. This is a one-time setup. Instructions are in the next section.
How to pre-validate your Demat Account on the e-Filing portal?
This is a one-time process. Once completed, you can use your demat account for EVC generation for all future filings.
1. Log in to the e-Filing portal:
Visit eportal.incometax.gov.in and log in using your PAN and password.
2. Go to My Profile → My Demat Account:
From the top menu, navigate to your profile section and select "My Demat Account."
3. Add your Demat Account:
Enter your Depository Participant (DP) ID, Client ID, and select your depository - NSDL or CDSL. Ensure the mobile number and email match what is registered with your broker/DP.
4. Validate and enable EVC:
Click "Validate." The portal will verify your demat account details with your depository. Once validated, toggle the "EVC enabled" option to enable EVC generation.
5. Confirmation:
You will receive a success message and a confirmation on your registered mobile and email. Your demat account is now ready for EVC-based e-verification.
Step-by-step: E-verify ITR through Demat Account
Once your demat account is pre-validated and EVC-enabled, follow these steps to complete your ITR e-verification:
Post-login method (recommended)
1. Log in to the Income Tax e-Filing portal:
Go to eportal.incometax.gov.in and log in with your PAN/Aadhaar and password.
2. Navigate to e-Verify Return:
Click on e-File → Income Tax Return → e-Verify Return.
3. Select the return to verify:
You will see a list of filed but unverified returns. Click e-Verify against the relevant return for the assessment year.
4. Choose "Through Demat Account":
On the e-Verify page, select the option ‘Generate EVC through Demat Account’ and click Continue.
5. Receive the EVC:
An Electronic Verification Code (EVC) will be sent to your mobile number and email ID registered with your pre-validated demat account.
6. Enter the EVC and verify:
Enter the received EVC in the text box provided and click e-Verify. Your ITR will be verified immediately.
7. Save the Transaction ID:
A success message will appear along with a Transaction ID and the EVC. Save this for your records. A confirmation will also be sent to your registered email and mobile number.
Done! Your ITR is now officially e-verified. The Income Tax Department will process it, and you can track the status under "View Filed Returns" on the portal.
Pre-login method (if you cannot log in)
If you are unable to log in or have chosen to verify later, you can also use the pre-login route:
1. Click "e-Verify Return" on the portal homepage:
This option is available without logging in.
2. Enter PAN, Assessment Year, Acknowledgment Number, and Mobile Number:
All these details are available in your ITR-V or the filing acknowledgment email.
3. Verify mobile OTP and proceed:
Enter the 6-digit OTP sent to the mobile number you provided. Then select Generate EVC through Demat Account and follow the same steps as above.
Comparison with Other E-Verification Methods
Here is how the demat account EVC method compares to the other available options:
| Method | Best for | Requirement |
| Demat Account EVC | Investors, traders | Pre-validated demat account |
| Aadhaar OTP | Most individuals | PAN linked to Aadhaar |
| Bank Account EVC | Those with pre-validated bank accounts | Pre-validated bank account |
| Net Banking | Quick verification via bank | PAN linked to bank; net banking active |
| Digital Signature Certificate (DSC) | Professionals, companies | Valid DSC, emsigner utility |
| Bank ATM (offline EVC) | Users without internet banking | Supported banks only (SBI, ICICI, etc.) |
Don't have a Demat Account Yet?
If you are a stock market investor or plan to invest in securities, opening a demat account is an essential first step. A demat account (short for "dematerialized account") holds your shares, bonds, ETFs, and mutual fund units in electronic form - much like a bank account holds your money.
How to open a Demat Account in India?
1. Choose a Depository Participant (DP):
You can open a demat account through a registered DP - which can be a bank, a full-service broker, or a discount broker. Most offer online account opening.
2. Keep your documents ready:
You will need: PAN card, Aadhaar card (for KYC), bank account details (canceled cheque), and a passport-size photograph.
3. Complete KYC (online or offline):
Most DPs allow in-person verification (IPV) via video call. An e-KYC with Aadhaar OTP is the fastest route, often completing the account opening in under 30 minutes.
4. Receive your DP ID and Client ID:
Once the account is active (usually within 24–48 hours), you will receive a DP ID and a Client ID (also called a Beneficiary Owner ID). These are required to link your demat account to the e-Filing portal.
Once your demat account is open and active, you can proceed to pre-validate it on the income tax portal and use it for EVC-based ITR verification, as described in the earlier sections.
Important Tips and Reminders
- E-verify your ITR within 30 days of filing; delayed verification requires a condonation of delay request.
- The EVC received on your mobile is valid for a limited session. Enter it promptly.
- Make sure your mobile number and email registered with your demat account are active and accessible.
- Pre-validation of the demat account needs to be done only once; it applies to all future filings.
- If your demat account details change (e.g., you change your broker), re-validate the new account on the portal.
- After verification, download and save the acknowledgment (ITR-V) from the portal for your records.
- You can check the verification status under e-File → Income Tax Return → View Filed Returns.
A word on compliance: An unverified ITR is considered as if it were never filed. This can lead to interest under Section 234A and possible penalties. Always ensure timely e-verification after filing.
