You might have experienced the convenience of filing your income tax returns online. It is simple and easy! Thanks to the advanced e-filing portals provided by the government. But, e-filling of income tax returns is not a complete paperless activity for you if you don’t use digital signature. As a result, most of us have to send a physical signed copy of ITR-V to the income tax department for verification, which is then duly acknowledged by the department. The activity of filing income tax return is not complete unless the income tax department receives your signed copy of ITR-V. Especially this part of the entire process makes it cumbersome and time-consuming for many of you. Don’t worry now. Filing of returns is going completely electronic soon.

What is going to change?

Recently, Central Board of Direct Taxes (CBDT) has introduced some changes to the ITR forms. In the new form, ITR will have some added features that aim not only to make filing of returns simple but drastically improve the scope of income tax collection. Now, ITR will have a new verification system under which Aadhaar linked Electronic Verification Code (EVC) will be used to verify returns filed online. Let’s see how this will work

The aforesaid system will completely eliminate the need of sending duly signed ITR-V to CPC Bengaluru within 120 days of filing of e-returns.

Besides, CBDT now expects you to give more disclosures while filing returns. Under new ITR forms (including ITR-1 and ITR-2), you need to provide,

·  All bank accounts held during the year for which income is being reported (including addresses of banks, IFSC codes etc.)

·  Information about joint holders

·  Bank-wise closing balance in all accounts as on March 31st of the fiscal year for which income is being reported

Those making foreign trips need to furnish even more information that includes;

·  Your passport number

·  Name of the place where the passport was issued to you

·  Countries you visited during the year

·  Number of times you visited foreign countries (in case you are a resident taxpayer)

·  Expenses you incurred during your foreign trips from your 'own sources’

PersonalFN is of the view that, newly introduced changes are well-directed to simplify the process of filing returns online. Greater disclosures would increase the chances of catching tax evaders. More disclosures would also help in curbing the use of black money. Technology is playing a pivotal role in making the entire tax system more effective.

You should disclose your entire income to the income tax authorities to save yourself from any kind of penalties. The process of tax recovery may disturb you mentally. To avoid this, PersonalFN suggests that you should pay your income tax dues in time and file returns properly. Filing I-T returns or any other tax returns for that matter, is a constitutional as well as a moral duty of an individual.

 

Before making any decisions do consult the experts. Author does not take any responsibility for misrepresentation or interpretation of act or rules. Neither the author nor the firm accepts any liability for the loss or damage of any kind arising out of information in this document or for any action taken in reliance there on.

Also read related article: How to Pay Zero Tax for Income up to Rs 10 Lakhs by CA Chirag Chauhan

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Abhishek Ranjan Singh

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Managing Director and Founder, ARS Solutions



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