New tax forms released have exempted taxpayers with Aadhaar cards from submitting their ITR-V by post after filing their returns online. The entire procedure of filing returns is now truly paperless for those who don’t have digital signatures as well! This comes as good news to taxpayers who e-file their taxes. Assesses filing I-T returns online will no longer have to send the paper acknowledgement by post. The new Aadhaar-based electronic verification code has been launched by the IT department to authenticate this document.
This move comes after the IT department has linked the electronic verification system endorsed Aadhar card to the ITR form, submitted by a tax payer. The Central Board of Direct Taxes (CBDT) has introduced a new column in the ITRs for 2015-16 where the e-filer can provide his Aadhaar number. The Aadhar number will have to be authenticated on the official website of the department using an OTP (One Time Password).
The process will need the e-filer to register his Aadhar number in the ITR after which the UIDAI database will send an OTP to the registered mobile umber of the taxpayer. The mobile number will have to be authenticated on the e-filing website. The authentication of the filed return thus takes place electronically.
So far online filing was paperless only if the person had a digital signature. Taxpayers without a digital signature had to mandatorily post a physical copy of the ITR-V to the CPC (Central Processing Centre) in Bengaluru within 120 days of filing tax returns online. The physical submission of the ITR-V acknowledgement slip did not allow the e-filing from becoming a completely online process. The new forms which incorporates details of Aadhar card makes e-filing easier. The new procedure will also ease the process of quick generation of refunds of taxpayers.
Several e-filers skip sending their ITR-V forms to CPC assuming the job was done once their return was e-filed. The IT department doesn’t consider a tax return as filed unless the ITR-V reaches them within 120 days of filing the return. The ITR-V needs to be signed and printed properly with the bar code clearly visible. ITR-Vs that did not have these details would get rejected. Complaints of postal delays and losses in transit also were the bane of the procedure. Seamless online filing will rid the system of these hiccups and made many more investors e-file their taxes with ease.
The new forms need a detailed declaration of bank accounts held at the time during the year in ITR-1 including those that have been closed during the payer. ITR-2 seeks particulars of foreign bank accounts and assets held, details of overseas travel and expenses on the trip.
For those who don’t have an Aadhar card yet, they can continue sending the physical documents to CPC as before. You can do that even if you have an Aadhar Card. This new system of verification is a method to ease the process for those who have an Aadhar card – an alternative way to e-file taxes.