CBDT Eases Income Tax Rules For Authentication of Submission of Electronic Records

The Central Board of Direct Taxes (CBDT) modified the Income-tax Rules, 1962 on September 6, 2021, to make it easier to authenticate electronic records in faceless assessment processes. "The amended Rules provides that electronic records submitted through registered account of the taxpayers in the Income-tax Department's portal shall be deemed to have been authenticated by the taxpayer by electronic verification code (EVC). Therefore, where a person submits an electronic record by logging into his registered account in designated portal of the Income-tax Department, it shall be deemed that the electronic record has been authenticated by EVC for the purposes of section 144B(7)(i)(b) of the Income-tax Act, 1961," said CBDT.

"However, under the existing provisions of section 144B(7)(i)(b) of the Act, this simplified process of authentication by EVC is not available to certain persons (such as companies, tax audit cases, etc.) and they are mandatorily required to authenticate the electronic records by digital signature," CBDT reported.

CBDT has also further stated that "In order to provide the benefit of the simplified process of authentication by EVC to these persons, it has been decided to extend the simplified process of authentication by EVC to these persons also. Hence, the persons who are mandatorily required to authenticate electronic records by digital signature shall be deemed to have authenticated the electronic records when they submit the record through their registered account in the Income-tax Department's portal. Legislative amendments in this regard shall be proposed in due course."

On consideration of difficulties reported by the taxpayers and other stakeholders in electronic filing of certain Forms under the provisions of the Income-tax Act,1961 Central Board of Direct Taxes (CBDT) has also recently decided to further extend the due dates for electronic filing of such Forms. To know more about the extended due dates please click here.