Government eases record authentication process for faceless assessment

The CBDT introduced a new rule to relax the authentication process of submitting records in faceless assessment proceedings. The notification released on 6th September 2021 states that if the taxpayer submits an electronic record through their account registered with the designated income tax portal, it will be deemed that the e-record is authenticated under the Electronic Verification Code (EVC).

The new rule is related to Section 144B(7)(i)(b) of the Income Tax Act. The said provision mentions the authentication of records required to be submitted by the taxpayers for faceless assessment proceedings. As per the law, the e-record should be authenticated by a digital signature if the taxpayer is required to furnish his income tax return under a digital signature. In any other case, the record should be authenticated by a digital signature or by EVC in the prescribed manner.

Hence, as per the new rule, if the taxpayers log in to their designated income tax department portal and submit their electronic records, it shall be deemed that the taxpayer has authenticated the records through EVC.

The latest amendments also apply to the taxpayers who are mandatorily required to authenticate their records through digital signature, for example, companies, taxpayers liable for a tax audit, etc. They shall be deemed to have authenticated the electronic records if they submit them through their account in the portal designated by the income tax department.

For any clarifications/feedback on the topic, please contact the writer at namita.shah@cleartax.in