Monday, May 25, 2015

Simplified Income Tax Return Form this week

As per the news published on PTI, the Finance Ministry will come out with simplified Income Tax Return (ITR) forms by this week, replacing the controversial ones that have been put on hold.

The ITR forms were put on hold by the Finance Ministry last month when all the persons like industry, assessees and MPs raised their voices and put question mark on the matter due to cumbersome disclosure requirement as per the new proposed ITRs.

Finance Ministry is committed to simply the ITRs. Earlier there were 12 and a half pages. 

The ITR forms notified for the current assessment year sought details of bank accounts and foreign vistits. These had specific columns for bank accounts, IFSC code, name of joint account hoder and foreign visits including the ones paid by the companies.


Friday, May 22, 2015

NO NEED TO FILE PHYSICAL ITR V FORM FOR AADHAR CARD HOLDERS

As we all know that online filing of Income Tax Return is paperless only if the person has a digital signature. Taxpayers who did not have a digital signature had to send a physical copy of the ITR V to the CPC, Bengalure by way of post within 120 days of filing tax returns online. Sometimes it happens that due to non receipt of ITR V, ITR is treated as "Invalid".

Now the person who furnishes Aadhar Id Number while e-filing of Income Tax Return will be exempted from submitting the physical copy of ITR V form as per the recent announcement by CBDT.

New ITR Form will be linked to Aadhar card and do away with Physical ITR V for those who have Aadhar verified by Electronic Verification Certification(EVC System)

Instead of manual verification, a new EVC will be introduced to verify your e-returns. For that one will have to mention their Aadhar Card Number in ITR Form. The new process of validation/ verification works as below:

While filing your tax return online, you need to register your Aadhar Card number in ITR.

The Income tax department's system will then check with UIDAI(Unique Identification Aughority of India) database.

The UIDAI's System will send OTP(One Time Password to your registered mobile number. then you need to enter this OTP on Income Tax Department's e-filing website. 

It is pertinent to note here that the above features is an optional one. if you want to send the physical copy of ITR V form, you may do so.