What is electronic verification code and how it works?

The CBDT has issued a notification regarding mode of filing of Income Tax return and New Income Tax return form for assessment year 2015-16 vide notification number 41/2015 dated 15/04/2015.

First time CBDT has introduced a new system of electronic verification code (EVC), where the assessee will not be required to send the ITR V to CPC.

How this system would work?

The process will require the e-filer to register his Aadhaar number in the ITR after which the UIDAI database will send an OTP to the registered mobile number of the taxpayer which subsequently will have to be authenticated on the e-filing website.

If the assessee is not having Aadhar, he has to follow the same process by sending the ITR V to CPC, as followed earlier.

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Details of Changes in New ITR as launched on 15/04/2015

Details of Changes in New ITR as launched on 15/04/2015

ITR-1

1) Introduction of furnishing Aadhar Card Number in ROI. Which will be used for EVC system.

Introduction of EVC for verification of return of income filed as an option to send ITR-V to CPC, Bangalore.

2) Details of all bank accounts with Bank name, IFSC Code, Name of Joint Holder, if any, Account number, Account balance as on 31.03.2015 mandatorily to be provided. Even those accounts which are closed during the year.

ITR-2

1) Introduction of furnishing Aadhar Card Number in ROI. Which will be used for EVC system introduced as mentioned above.

2) Details of Foreign Travel made if any (For resident and nonresident both) includes, Passport No, Issued at, name of country, number of times travelled and expenditure

3) Details of utilization of amount deposited in capital gain account scheme for years preceding to last two assessment years. Particulars asked include year of utilization, amount utilized, amount unutilized lying idle in capital gain account scheme till the date of filing of return of income.

4) In case of LTCG & STCG not chargeable to tax to Non-resident on account of DTAA benefit, It is required to furnish Country name, Article of DTAA, TRC obtained or not?,

5) For Non-resident, Income from other sources, If any income chargeable to tax at special rate provided in DTAA, It is now required to provide details of Name of Country, Relevant article of DTAA, Rate of Tax, Whether TRC obtained or not?, Corresponding rate of tax under income tax act.

6) Details of all bank accounts with Bank name, IFSC Code, Name of Joint Holder, if any, Account number, Account balance as on 31.03.2015 mandatorily to be provided. Even those accounts which are closed during the year.

7) In schedule FA- Foreign assets disclosure, Following details added.

a) Foreign Bank accounts details: It is now further require to furnish Account number, account opening date, Interest/income accrued from such account, If any along with details of head of income and schedule under which such income is shown, if offered to tax in India.

b) In similar manner, details of income from Financial interest in any entity outside India along with details of income offered to tax in ITR-2 from such income.

c) Similar disclosure requirement is also required for Immovable property outside India, capital asset held outside India, trust held outside India

ITR-4S

1) Introduction of furnishing Aadhar Card Number in ROI. Which will be used for EVC system introduced as mentioned above.

2) Details of all bank accounts with Bank name, IFSC Code, Name of Joint Holder, if any, Account number, Account balance as on 31.03.2015 mandatorily to be provided. Even those accounts which are closed during the year

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CBDT Notifies ITR-1 ITR-2 ITR-4S ITR-V for A.Y. 2015-16

S.O. 1014 (E).─ In exercise of the powers conferred by section 295 of the Income-tax Act, 1961 (43 of 1961), the Central Board of Direct Taxes hereby makes the following rules further to amend the Income-tax Rules, 1962, namely:-

1. (1) These rules may be called the Income-tax (Seventh Amendment) Rules, 2015.

(2)    They shall be deemed to have come into force with effect from the 1st day of April, 2015.

2. In the Income-tax Rules, 1962,─

(1) in rule 12,─

(a)   in sub-rule (1),-

(A)      after  the  words,  brackets,  figure  and  letter  “sub-section  (4D)”  the  words, brackets, figure and letter “or sub-section (4E)” shall be inserted;

(B)       for the figures “2014”, the figures “2015” shall be substituted;

(C)       in clause (a), in the proviso, in clause (I), for sub-clause (ii), the following sub- clauses shall be substituted, namely:-

“(ii) signing authority in any account located outside India; or

(iii) income from any source outside India;”;

(D)      in clause (ca), in the proviso, in clause (I), for sub-clause (ii) the following sub- clauses shall be substituted, namely:-

“(ii) signing authority in any account located outside India; or

(iii) income from any source outside India;”;

(E)       in clause (g), after the words, brackets, figure and letter “sub-section (4D)” the words, brackets, figure and letter “or sub-section (4E)” shall be inserted;

(b)  for sub-rule(3), the following sub-rule shall be substituted, namely:-

‘(3) The return of income referred to in sub-rule (1) shall be furnished by a person mentioned in column (ii) of the Table below to whom the conditions specified in column (iii) apply, in the manner specified in column (iv) thereof:-

Table

Sl.	Person	Condition	Manner of furnishing return of income
(i)	(ii)	(iii)	(iv)
1	Individual or       Hindu undivided family	(a) Accounts are required to be audited under section 44AB of the Act;	Electronically  under   digital signature
		(b) Where (a) is not applicable and,- (I)   the  return  is  furnished  in  Form No. ITR-3 or Form No. ITR-4; or (II)  the person, being a resident, other than    not     ordinarily    resident within   the   meaning     of    sub- section (6) of section 6, has, (A) assets       (including        financial interest  in  any  entity)  located outside   India;   or   (B)   signing authority in any account located outside   India;   or   (C)   income from any source outside India; (III) any relief, in respect of tax paid outside India, under section 90 or 90A  or  deduction  of  tax  under section 91 is claimed; or (IV) any report of audit referred to in	(A)      Electronically    under digital signature; or (B)      Transmitting the data in the return electronically under electronic verification code; or (C)      Transmitting the data in  the  return  electronically and thereafter submitting the verification of the return in Form ITR-V.

		proviso to sub-rule (2) is required to be furnished electronically; or (V) total income assessable under the Act during the previous year of the person (other than the person, being an individual of the age of 80 years or more at any time during the previous year and furnishing  the  return  in  Form ITR-1 or ITR-2),- (i) exceeds five lakh rupees; or (ii) any refund is claimed in the return of income;
		(c)  In any other case.	(A)      Electronically    under digital signature; or (B)      Transmitting the data in the return electronically under electronic verification code; or (C)      Transmitting the data in  the  return  electronically and thereafter submitting the verification of the return in Form ITR-V; or (D)      Paper form;
2	Company	In all cases.	Electronically  under   digital signature.
3	A      person required to furnish the return in Form ITR-7	(a) In case of a political party;	Electronically  under   digital signature;
		(b) In any other case	(A)       Electronically     under digital signature; or (B)       Transmitting the data in  the  return  electronically

			under  electronic  verification code; or (C)      Transmitting the data in  the  return  electronically and thereafter submitting the verification of the return in Form ITR-V.
4	Firm          or limited liability partnership or           any person (other than a person mentioned in Sl. 1 to 3 above) who is  required to file return in  Form ITR-5	(a)  Accounts are required to be audited under section 44AB of the Act;	Electronically  under   digital signature;
		(b)  In any other case.	(A)      Electronically    under digital signature; or (B)      Transmitting the data in the return electronically under electronic verification code; or (C)      Transmitting the data in  the  return  electronically and thereafter submitting the verification of the return in Form ITR-V.

Explanation.- For the purposes of this sub-rule “electronic verification code” means a code generated for the purpose of electronic verification of the person furnishing the return of income as per the data structure and standards specified by Principal Director General of Income-tax (Systems) or Director General of Income-tax (Systems).’

(d)  in sub-rule (4), for the words and brackets, “Director-General of Income-tax (Systems)”, the words and brackets “Principal Director-General of Income-tax (Systems) or Director- General of Income-tax (Systems)” shall be substituted;

(e) in sub-rule (5),  for the figures “2013”, the figures “2014” shall be substituted.

(2)  in  Appendix-II,  for  "Forms  SAHAJ (ITR-1),  ITR-2,  SUGAM (ITR-4S)  and  ITR-V"  the "Forms SAHAJ (ITR-1), ITR-2, SUGAM (ITR-4S) and ITR-V" shall respectively, be substituted, namely:-

                     [Notification No. 41/2015/ F.No.142/1/2015-TPL]

(Gaurav Kanaujia)

Director to the Government of India

To Download official Notification Click Here

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