Now, Use ‘One-Time Password’ to E-File Income Tax Returns

The Income
Tax Department on Monday launched its ambitious One Time Password (OTP) based
e-filing verification system for taxpayers, thereby ending the practice of
sending paper acknowledgement to its office in Bengaluru.

The
facility can be accessed using internet banking, Aadhaar number, ATM and email. According
to the rules notified in this regard by the Central Board of Direct Taxes
(CBDT) on Monday, any taxpayer, whose income is Rs. 5 lakh or below per annum
and has no refund claims, he or she can straightaway generate the ‘Electronic
Verification Code’ (EVC) for e-filing and validating their Income Tax Return
(ITR) through their registered mobile number and e-mail id with the department.

However,
this most simplified option, will be subject to certain
“restrictions” which will be prepared by the taxman based on the
concerned taxpayer’s “risk criteria and profile” in a case-to-case
basis.

“This
simply means that if the department has some adverse observation against the
said PAN number with income less than Rs 5 lakh, he or she will not be allowed
to do the verification directly through their email and mobile number alone and
such cases will have to go through the other established procedures in this
regard like linkup through Aadhaar database, internet baking or via the
ATM,” a senior official explained.

These new
measures would completely eliminate the need of sending the paper
acknowledgement, called ITR-V, through post to the I-T Central Processing
Centre (CPC) based in Bengaluru.

In the
other options given, those taxpayers who have internet banking activated can do
the e-verification of their ITR. “The
facility will be available on the internet banking website and the verifier
(taxpayer) will use this facility using internet banking id, login password and
transaction password,” the latest CBDT rules said.

Once
logged in on the banking portal, the taxpayer will be sent the EVC to his
mobile number provided in the official e-filing web portal of the department
which they will put in their ITR for final submission.
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