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CBDT Notifies Rule 14C prescribing manner of authentication of electronic record by EVC in Faceless Assessment

cbdt-notifies-rule-14c-prescribing-manner-of-authentication-of-electronic-record-by-evc-in-faceless-assessment

CBDT vide Notification No. 101/2021 in G.S.R. 616(E) dated 06.09.2021 through Income-tax (26th Amendment) Rules, 2021 inserted Rule 14C in the Income-tax Rules, 1962 prescribing manner of authentication of an electronic record under electronic verification code under subclause (b) of clause (i) of subsection (7) of section 144B of the Income Tax Act, 1961. Section 144B prescribes the Faceless Assessment Scheme.


As per section 144B(7)(i)(b), for the purposes of faceless assessment, an electronic record shall be authenticated by the assessee or any other person, by affixing his digital signature if he is required to furnish his return of income under digital signature, and in any other case, by affixing his digital signature or under electronic verification code in the prescribed manner. The new Rule 14C is inserted to ease authentication of electronic records submitted in faceless assessment proceedings.



The manner has now been prescribed by inserting a new Rule 14C in the Income-tax Rules, 1962. It is prescribed that where an assessee or any other person submits an electronic record by logging into his registered account in the designated portal of the Income-tax Department, it shall be deemed that the electronic record has been authenticated under electronic verification code


It follows that in the case where the return is required to be filed with DSC, electronic records are required to be submitted with DSC. This is applicable in the case of a company or where a tax audit is applicable. In other cases, where DSC is not mandatory, electronic records in faceless assessment can be furnished with EVC. However, the concept of EVC in the case of furnishing electronic records in faceless assessment is different from the EVC in the case of filing income-tax returns. In the case of ITR, EVC is generated through Net Banking or prevalidated and EVC-enabled Bank Account. In the case of furnishing electronic records, no OTP or SMS is required. Simple filing of records after logging into the e-filing account is a sufficient mode of EVC.


In other words, if electronic records are submitted through the registered account of the taxpayer on the income tax portal, separate authentication through EVC is not required to be done. In short, Income-tax (27th Amendment) Rules, 2021 notifies new Rule 14C which provides that EVC is not required for authentication of electronic records furnished during Faceless Assessment proceedings.


In this context, a Press Release is issued by the CBDT on 7th September 2021. The full text of the Press Release is appended below the text of the Notification.


Read the full text of Notification No. 101/2021 dated 06.09.2021 on the manner of authentication of an electronic record by EVC in Faceless Assessment


MINISTRY OF FINANCE 

(Department of Revenue) 


(CENTRAL BOARD OF DIRECT TAXES) 


NOTIFICATION 


New Delhi, the 6th September, 2021 


G.S.R. 616(E).—In exercise of the powers conferred by sub-clause (b) of clause (i) of sub-section (7) of section 144B read with section 295 of the Income-tax Act, 1961 (43 of 1961), the Central Board of Direct Taxes hereby makes the following rules further to amend Income-tax Rules, 1962, namely:- 


1. Short title and commencement. — (1) These rules may be called the Income-tax (26th Amendment) Rules, 2021. 


(2) They shall come into force from the date of their publication in the Official Gazette. 


2. In the Income-tax Rules, 1962, after rule 14B, the following rule shall be inserted, namely:–


‘14C. Prescribed manner of authentication of an electronic record under electronic verification code under sub-clause (b) of clause (i) of sub-section (7) of section 144B.- For the purposes of sub-clause (b) of clause (i) of sub-section (7) of section 144B, where an assessee or any other person submits an electronic record by logging into his registered account in designated portal of the Income-tax Department, it shall be deemed that the electronic record has been authenticated under electronic verification code. 


Explanation. - For the purposes of this rule, “designated portal” shall have the same meaning as assigned to it in in clause (i) of the Explanation below to section 144B’. 


[Notification No. 101 /2021/F.No. 370142/35/2021-TPL (Part-I)] 

SHEFALI SINGH, Under Secy., Tax Policy and Legislation


Note : The principal rules were published vide notification S.O. 969(E), dated the 26th 27th March, 1962 and last amended vide notification GSR 612(E), dated the 02nd September, 2021. 

(The words 26th is corrected as 27th vide a Corrigendum Notification No. 102/2021 dated 7.9.2021)


Download CBDT Notification No. 101/2021 dated 06.09.2021 on the manner of authentication of an electronic record by EVC in Faceless Assessment in pdf format

Read the full text of the Press Release dated 07.09.2021 on authentication of electronic records submitted in faceless assessment proceedings

Government of India
Ministry of Finance
Department of Revenue
Central Board of Direct Taxes

New Delhi, 7th September, 2021

PRESS RELEASE

CBDT amends Income-tax Rules, 1962 to ease authentication of electronic records submitted in faceless assessment proceedings

For easing the process of authentication of electronic records in faceless assessment proceedings, the Government has amended Income-tax Rules, 1962 (‘the Rules’) vide notification no G.S.R. 616(E) dated 6th September, 2021. The amended Rules provides that electronic records submitted through registered account of the taxpayers in the Income-tax Department’s portal shall be deemed to have been authenticated by the taxpayer by electronic verification code (EVC). Therefore, where a person submits an electronic record by logging into his registered account in designated portal of the Income-tax Department, it shall be deemed that the electronic record has been authenticated by EVC for the purposes of section 144B(7)(i)(b) of the Income-tax Act, 1961 (‘the Act’). However, under the existing provisions of section 144B(7)(i)(b) of the Act, this simplified process of authentication by EVC is not available to certain persons (such as companies, tax audit cases, etc.) and they are mandatorily required to authenticate the electronic records by digital signature. In order to provide the benefit of the simplified process of authentication by EVC to these persons, it has been decided to extend the simplified process of authentication by EVC to these persons also. Hence, the persons who are mandatorily required to authenticate electronic records by digital signature shall be deemed to have authenticated the electronic records when they submit the record through their registered account in the Income-tax Department’s portal. Legislative amendments in this regard shall be proposed in due course.

(SurabhiAhluwalia)
Commissioner of Income Tax
(Media & Technical Policy)
Official Spokesperson, CBDT

Download Copy of Press Release dated 07.09.2021 on authentication of electronic records submitted in faceless assessment proceedings in pdf format

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