Remaining compliant with the tax laws is the main reason behind filling income tax return (ITR) every year. However, some people file ITR just to get back the excess TDS deducted from their income. But your tax refund will be processed only if you complete the ITR process by verifying the ITR either electronically through EVC/OTP or by sending it through post to CPC, Bangalore.

An assessee is required to verify the return within 120 days of e-filing the ITR, else the return is considered invalid. 

There are many such ITRs which have been filed electronically but are still pending for verification. Due to this, the Central Board of Direct Taxes (CBDT) has decided to provide one-time relaxation for verification of e-filed ITRs for Assessment Years (AYs) 2015-16 to 2019-20, which are considered pending due to non-filing of the ITR-V form.

So those assessees whose last five year's refund is stuck due to non-verification of ITR, have a chance to get their refund by filing the ITR-V form through electronic verification before September 30, 2020.

In case you have a tax liability for the last five year and your ITR is pending for verification the authorities can start legal proceedings against the assessee as per the law. So it is necessary to complete your ITR if there is any return pending in the last five years.

CBDT said that the additional time was being given as “a one-time measure" for resolving the grievances of taxpayers associated with non-filing of ITR-V for earlier assessment years and to regularize such returns that have either become non-existent or have remained pending due to non-filing or non-receipt of respective ITR-V forms.

However, this relief will not be applicable to those where officials have already taken action for ensuring compliance.