Income Tax: Authentication of e-records made easier

Government has amended Income Tax Rules, 1962 to provide that electronic records submitted through registered account of taxpayers in the Income Tax Department’s portal would be deemed to have been authenticated by taxpayers by electronic verification code in order to simplify the process of authentication of electronic records in faceless assessment proceedings (EVC).

As a result, when a person submits an electronic record by logging into his registered account in the Income Tax Department’s designated portal, the electronic record is deemed to have been authenticated by EVC for the purposes of section 144B(7)(i)(b) of the Income Tax Act, 1961, according to the department said in a statement.

According to the existing provisions of section 144B(7)(i)(b) of the Act , If Certain persons (such as organisations, tax audit cases, etc.) do not have access to this simplified process of authentication by EVC, and they must authenticate the electronic records by digital signature.

To provide these individuals with the benefit of the simplified EVC authentication process, it has been decided to extend the simplified EVC authentication process to them as well.

As a result, persons who are required to authenticate electronic records by digital signature will be deemed to have authenticated the electronic records when they submit the record through their registered account in the Income Tax Department’s portal. “In this regard, legislative amendments will be proposed in due course,” it said.