CBDT to Validate UDIN from ICAI portal for Tax Audit Reports

By a press release dated 26.11.2020, CBDT has said that it will validate Unique Document Identification Number (UDIN) generated from Institute of Chartered Accountants of India (ICAI) portal at the time of upload of Tax Audit Reports. It will be mandatory to validate UDIN at the time of submitting a certificate or report or within 15 days of submitting such certificate or report on the e-filing portal. If the same is not done that certificate or report would be considered as invalid.

The income tax department will validate the UDIN of chartered accountants/auditors with the ICAI when they upload the tax audit reports on the e-filing portal.

It has been noticed that financial documents/ certificates attested by third person misrepresenting themselves as CA Members are misleading the Authorities and Stakeholders. ICAI is also receiving number of complaints of signatures of CAs being forged by non CAs. To curb the malpractices, the Professional Development Committee of ICAI has implemented in phased manner an innovative concept of UDIN i.e. Unique Document Identification Number. All Certificates are being made mandatory with effect from 1st February, 2019 as per the Council decision taken at its 379th Meeting held on 17th – 18th December, 2018.

Chartered Accountants having full-time Certificate of Practice can register on UDIN Portal and generate UDIN by registering the certificates attested/certified by them.

Unique Document Identification Number (UDIN) has been made mandatory as per the Council decision taken at its 379th Meeting held on 17th – 18th December, 2018 in the following phases:

(i) All Certification done by Practising CAs w.e.f. 1st Feb., 2019.

(ii) All GST & Tax Audit Reports w.e.f. 1st April, 2019.

(iii) All other attest functions w.e.f. 1st July, 2019.

Since 1st February 2019 all certificates issued by Chartered Accountants had been made mandatory. In 2nd phase, w.e.f 1st April, 2019, UDIN was made mandatory for GST & Tax Audit Reports.

The press release further stated that in line with the ongoing initiatives of the income tax department for integrating with other government agencies and bodies, income-tax e-filing portal has completed its integration with the ICAI portal for validation of UDIN generated from the ICAI portal by the chartered accountants for documents certified/attested by them. With the system-level integration, UDIN provided for the audit reports/certificates submitted by the Chartered Accountants in the e-filing portal shall be validated online with the ICAI. This will help in weeding out fake or incorrect Tax Audit Reports not duly authenticated with the ICAI.

Income-tax e-filing portal had already factored mandatory quoting of UDIN with effect from April 27, 2020, for documents certified/attested in compliance with the Income Tax Act, 1961 by a chartered accountant.

If a chartered accountant was not able to generate UDIN before submission of the audit reports or certificates, the e-filing portal permits updating the UDIN within 15 calendar days from the date of submission of such reports/certificates on the income tax e-filing portal. If the UDIN for the audit reports or certificates is not updated within the 15 days, such audit reports or certificates uploaded shall be treated as invalid submission.

Therefore, it is advisable to generate UDIN before submitting any audit report or certificate on the e-filing portal and quote the same while submitting the report or certificate.

Read the full text of the Press Release dated 26.11.2020 on Validating UDIN from ICAI portal for Tax Audit Reports

Government of India

Department of Revenue

Ministry of Finance

Central Board of Direct Taxes

New Delhi, 26th November, 2020

PRESS RELEASE

CBDT to validate Unique Document Identification Number (UDIN) generated from ICAI portal at the time of upload of Tax Audit Reports

The Institute of Chartered Accountants of India, in its gazette notification dated 2nd August, 2019, had made generation of UDIN from ICAI website www.icai.org mandatory for every kind of certificate/tax audit report and other attests made by their members as required by various regulators. This was introduced to curb fake certifications by non-CAs misrepresenting themselves as Chartered Accountants.

In line with the ongoing initiatives of the Income Tax Department for integrating with other Government agencies and bodies, Income-tax e-filing portal has completed its integration with the Institute of Chartered Accountants of India (ICAI) portal for validation of Unique Document Identification Number (UDIN) generated from ICAI portal by the Chartered Accountants for documents certified/attested by them.

It may be noted that, in consonance with the above requirement, Income-tax e-filing portal had already factored mandatory quoting of UDIN with effect from 27th April, 2020 for documents certified/attested in compliance with the Income-tax Act,1961 by a Chartered Accountant. With this system level integration, UDIN provided for the audit reports/certificates submitted by the Chartered Accountants in the e-filing portal shall be validated online with the ICAI.  This will help in weeding out fake or incorrect Tax Audit Reports not duly authenticated with the ICAI.

If for any reason, a Chartered Accountant was not able to generate UDIN before submission of audit report/certificate, the Income-tax e-filing portal permits such submission, subject to the Chartered Accountant updating the UDIN generated for the form within 15 calendar days from the date of form submission in the Income- tax e-filing portal. If the UDIN for the audit report/certificate is not updated within the 15 days provided for the same, such audit report/certificate uploaded shall be treated as invalid submission.   

(Surabhi Ahluwalia)

Commissioner of Income Tax

(Media & Technical Policy)

Official Spokesperson, CBDT

Download Copy of the Press Release dated 26.11.2020 on Validating UDIN from ICAI portal for Tax Audit Reports in pdf format.

Update:

Income Tax Department has released FAQs on UDIN and is hosted in the e-filing web portal. The same is reproduced here-

FAQs on UDIN 

What is Unique Document Identification Number (UDIN)? 

The Institute of Chartered Accountants of India, on noticing about the fake certifications by Non-CAs misrepresenting themselves as Chartered Accountants which misled the authorities and stakeholders, pioneered in conceptualizing a unique concept which is called "Unique Document Identification Number (UDIN) ". Unique Document Identification Number (UDIN) is 18-Digitsystem generated unique number which has to be generated by Full- time Practicing Chartered Accountants for every document certified/attested by them. 

As per the decision of the Council of ICAI, UDIN has been made mandatory in phased manner as per following schedule: 

For all Certificates w.e.f. 1st February, 2019; 

For all GST and Tax Audit Reports w.e.f. 1st April, 2019; 

For all other Audit, Assurance and Attestation functions w.e.f. 1st July, 2019. 

Is UDIN mandatory for upload of the Audit Report and CA certification forms in e-filing portal? 

Yes, it is mandatory. 

Is it possible for upload of the form without UDIN being quoted? 

Yes, it is possible if a UDIN for the form has not been generated and the CA desires to upload the same without UDIN. However, within 15 calendar days of uploading, UDIN generated for the form should be updated to avoid the form uploaded being treated as invalid. 

On providing UDIN, the form submission page does not get opened. What to do?

One of the reason could be that UDIN validation process is consuming more time. You can remove the UDIN and proceed with the form upload and later update the form UDIN within 15 day of its upload 

A form has been uploaded with valid UDIN. However, UDIN status indicates, ‘update UDIN’. What does this mean? 

As long as Taxpayer has not accepted the uploaded form, the CA would be able to modify the UDIN. 

How to update the UDIN in case form is uploaded without UDIN? 

A link ‘View/Update UDIN details’ will be available under My Account tab. User must click the link and shall be redirected to ‘View/Update UDIN details’ for further action. 

How to correct the error in a form where UDIN has already been updated? 

In case an error has been identified after the upload of the form, please ensure that the taxpayer does not accept the form that has been uploaded. Upload the corrected form with the same UDIN and ensure that the taxpayer accepts the corrected form. 

How to correct the error in the form with valid UDIN after it has been accepted by the taxpayer? 

If the mistake or error in the form or attachment has been noticed subsequent to taxpayer accepting the form linked to a valid UDIN, then the process is only revising the form with new UDIN generated by revoking the earlier generated UDIN of the submitted form. 

What will happen to the form if the CA uploads without UDIN or fails to update the UDIN within 15 calendar days, but the form uploaded has been accepted by the taxpayer? 

The form uploaded will be treated as invalid with all due consequences of law attracted. 

What will happen to the form uploaded by the CA with UDIN and not accepted by the taxpayer? 

The form uploaded will not be considered as valid submission by the taxpayer till it is accepted by the taxpayer. 

What will be considered as the date of submission of the form by the taxpayer? 

The date of submission of the form by the taxpayer will be the date on which the taxpayer accepts the form uploaded by the CA or the date on which the CA has furnished the UDIN, whichever event takes place later as the case may be. 

What will happen to the form in case UDIN is revoked? 

In case UDIN of a form is revoked after its acceptance by the taxpayer, then the form submitted with that UDIN will be treated as invalid on the date on which the UDIN is revoked with due consequences of law attracted. 

What will be considered as the date of submission of the form by the taxpayer in case UDIN is revoked? 

In case UDIN of a form is revoked after its acceptance by the taxpayer, and a revised form with fresh UDIN is uploaded, then the date on which the taxpayer accepts the revised uploaded form will be considers as the date of submission. 

How to correct the error in a form where UDIN has not been updated? 

In case an error has been identified after the upload of the form, ensure that the taxpayer does not accept the form that has been uploaded. Re-upload the corrected form with the same UDIN and ensure that the taxpayer accepts the form which is the corrected. 

What does the status ‘Consumed’ indicates under ‘UDIN status’? 

It indicates that the form uploaded by the CA with a UDIN has been accepted by the taxpayer and the UDIN linked to the form cannot be used for upload of another form or the revision or correction of the form already uploaded without its revocation. 

What does the status ‘Unconsumed’ indicates under ‘UDIN status’? 

It indicates that the form uploaded by the CA with a UDIN has been rejected by the taxpayer and the form can be re-uploaded using the same UDIN. 

How to modify the UDIN in case UDIN is linked to a form but the form is not accepted or rejected by the taxpayer? 

A link ‘View/Update UDIN details’ will be available under My Account tab. User must click the link and shall be redirected to ‘View/Update UDIN details’ for further action.

Download Copy of FAQs on UDIN in pdf format

Update:

Income Tax Department allowed One-time relaxation to update UDIN of audit report/certificates to avoid invalidation by 31st December, 2020. A message appeared on the e-filing portal on 14.12.2020 which is reproduced below-

14/12/2020: A One time relaxation to update UDIN has been enabled. Kindly update the UDIN before 31st December, 2020 of audit report/certificates to avoid invalidation

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