Circular No. 21/2021

One time relaxation for verification of all income tax returns e filed for the assessment year 2020 21 which are pending for verification and processing of such returns

What this is

Circular No. 21/2021 was issued by the Central Board of Direct Taxes on 28 December 2021. Its subject is One time relaxation for verification of all income tax returns e filed for the assessment year 2020 21 which are pending for verification and processing of such returns.

What it does

Gives a one-time chance to verify unverified returns for assessment year 2020-21. An electronically filed return without a digital signature must be verified within 120 days of uploading, by Aadhaar one-time password, net banking, an electronic verification code through a bank account, demat account or bank ATM, or by sending the signed ITR-V by post to the Centralised Processing Centre, Bengaluru. For all returns for assessment year 2020-21 that were uploaded within the time allowed under section 139 but remained incomplete for want of the ITR-V or e-verification, the Board under section 119(2)(a) permits verification by any of those modes, or by speed post, up to 28 February 2022. It also relaxes the time limit in the second proviso to sub-section (1) of section 143 and directs that such returns be processed by 30 June 2022 with intimation to the taxpayer, section 244A(2) applying to interest in refund cases. If the return is not regularised by 28 February 2022, the consequences of non-filing follow.

Why it was issued

A large number of electronically filed returns for assessment year 2020-21 were pending for want of a valid ITR-V at the Centralised Processing Centre or for want of e-verification, and an unverified return can be declared non est, which brings the consequences of not filing at all.

Who it reaches

Taxpayers whose assessment year 2020-21 return was uploaded but never verified
Taxpayers whose return had already been declared non est on this ground
Taxpayers awaiting a refund on such a return

The provisions it speaks to

Left, the provision of the Income-tax Act, 1961 as the instrument itself names it. Right, the section of the Income-tax Act, 2025 that the department’s own concordance maps it to — which is where the same ground is now covered.

Under the 1961 Act	Now
s.119	s.239
s.139	s.2, s.263, s.349
s.143	s.270
s.244A	s.437

The instrument, as the Board published it

The department publishes this one only as a PDF, so the words below were read out of that PDF by machine. That reading can carry its own mistakes — a misread number, a broken line. Check the signed document before you rely on a figure in it.

F. No. 225/140/202111TA-1I
Government of India
Ministry of Finance
Department of Revenue
Central Board of Direct Taxes
*****
Circular No. 2 / 12021
New Delhi, dated 28th December,2021
Subject: One-time relaxation for verification of all income tax-returns e-filed for
the Assessment Year 2020-21 which are pending for verification and processing
of such returns - reg.

1. In respect of an Income-tax Return (lTR) which is filed electronically without a
digital signature, the taxpayer is required to verify it using anyone of the following
rnodes within the tirne lirnit of 120 days from date of uploading the ITR: -
i. Through Aadhaar OTP
ii. By logging into e-filing account through net banking
iii. EVC through Bank Account Number
iv. EVC through Demat Account Number
v. EVC through Bank ATM
vi. By sending a duly signed physical copy of ITR-V through post to the CPC,
Bengaluru

2. In this regard, it has been brought to the notice of Central Board of Direct Taxes
('Board') that large number of electronically filed ITRs for the Assessment Year 2020-
21 still remain pending with the Income-tax Departrnent for want of receipt of a valid
ITR-V Form at CPC, Bengaluru or pending e-Verification from the taxpayers
concerned. In law, consequences of failure to verify the ITR within the time allowed is
significant as such an ITR is/can be declared non-est. Thereafter, the consequences
for non-filing an ITR, as specified in the Income-tax Act,1961 ('the Act') follow.

3. In this context, it has been decided by the Board to provide one-time relaxation
for submission of ITR-V/e-Verification for resolving the grievances of the taxpayers
associated with non-verification of ITRs for the Assessrnent Year 2020-21 and to
regularize such ITRs which have either become non-est or have remained pending
with Income-tax Department for want of receipt of respective ITR-V Form or pending
e-Verification. Therefore, in respect of alllTRs for Assessment Year 2020-21 which
were uploaded electronically by the taxpayers within the time allowed under
section 139 of the Act and which have remained incomplete due to nonsubmission of ITR-V Forml pending e-Verification, the Board , in exercise of its
powers under section 119(2)(a) of the Act, hereby permits verification of such returns
either by sending a duly signed physical copy of ITR-V to CPC, Bengaluru
through speed post or through EVC/OTP modes as listed in para 1 above. Such
verification process must be completed by 28.02.2022.

4. This relaxation shall not apply in those cases, where during the intervening period,
Income-tax Department has already taken recourse to any other measure as specified
in the Act for ensuring filing of tax return by the taxpayer concerned after declaring the
return as non-est.

5. Further, Board also relaxes the time-frame for issuing the intimation as provided
in second proviso to sub-section (1) of Section 143 of the Act and directs that such
returns shall be processed by 30.06.2022 and intimation of processing of such returns
shall be sent to the taxpayer concerned as per the laid down procedure. In refund
cases, while determining the interest, provision of section 244A (2) of the Act would
apply. It is clarified that this relaxation would be applicable to all such returns which
are verified during the extended period.

6. In case the taxpayer concerned does not get her/his return regularized by
furnishing a valid verification (either ITR-V or EVC/OTP) by 28.02.2022, necessary
consequences as provided in law for non-filing the return may follow.

Copy to: -
i. PS to FM/OSD to FM/PS to MoS(F)/OSD to MoS(F)
II. PS to Secretary (Revenue)
III. Chairman, CBDT & All Members, CBDT
IV. All Pro CCsIT/ Pro DGslT
V. DGIT(systems) with a request to undertake a campaign to ensure that
maximum number of returns are verified during the extended period
VI. All Joint Secretaries/CsIT, CBDT
VII. CIT (M&TP), Official Spokesperson of CBDT for giving wide publicity
VIII. Web Manager for uploading on official income-tax website
IX. JCIT (Database Cell) for uploading on the irsofficersonline website

(Ravinder Maini)
Director (ITA.II), CBDT

What to watch

The relaxation does not apply where the Department had in the meantime taken some other measure under the Act to secure a return after declaring the earlier one non est.
Only returns uploaded within the time allowed under section 139 qualify; a return uploaded late is outside this.
Interest on a refund is governed by section 244A(2), so the delay attributable to the taxpayer can cost him interest even though the return is regularised.
The verification date, 28 February 2022, and the processing date, 30 June 2022, have both passed; the circular is spent.

Where you meet it

Where an assessment year 2020-21 return was treated as non est for want of verification and the consequences of non-filing, or a refund denial, followed.

What it names

It mentions. Circular No. 2/1202

On the same provision

Other instruments in this library that name the same provision of the 1961 Act. They are not necessarily still operative, and a later one may have replaced an earlier one without saying so.

Circular No. 6/2026 — Condonation of delay in filing Form No. 10AB electronically for approval under clause(ii) of the first proviso to sectio 2 July 2026
Circular No. 2/2026 — Order under section 119 of the Income-tax Act, 1961 for extension of timeline for issuance of tax deducted at source (TD 25 March 2026
Circular No.15/2025 — Extension of timelines for filing of various reports of audit and income tax returns ITRS for the assessment year 2025 2 29 October 2025
Circular No. 10/2025 — Relaxation of time limit for processing of returns of income filed electronically which were incorrectly invalidated by 28 July 2025
Circular No. 7/2025 — Relaxation of time limit for processing of valid returns of income filed electronically pursuant to order u/s 119(2)(b) 25 June 2025
Circular No. 6/2025 — Extension of due date for furnishing return of income for the Assessment Year 2025-26 27 May 2025

← Circular No. 1/2022 · Circular No. 20/2021 →

A circular binds the department, not you and not a court. The Board issues a circular to its own officers. An assessee may hold the department to a circular that helps him; the department cannot hold an assessee to one that hurts him, and the Tribunal and the courts decide the law for themselves.

Source: the Income Tax Department’s own published text — its page for this instrument.