Electronic Verification Code: A step ahead by CBDT to e-governance

Navneet Singal

Electronic Verification Code (‘EVC’) is a step ahead by the CBDT in e-governance which has been introduced by CBDT by notifying Notification no. 2/2015 dated July 13, 2015. The EVC process will benefit lakhs of taxpayers in filing of paper less return. Currently, it is mandatory for the companies to file the Income Tax Return (ITR) using digital signature, however for other assessees it is optional to forward their ITR V with the Central Processing Centre (CPC) in paper form or file the e-return with digital signature. Now, no. of assessees can save themselves from the requirement of sending ITR V in paper form by using the EVC.

The EVC mechanism would verify the identity of the person while furnishing the return of income by EVC which would be generated on the E-filing website https://incometaxindia.gov.in or as otherwise indicated. The following are the main feature of the EVC mechanism:

1.      Verifier can use EVC to verify his ITR in FORM 1, 2, 2A, 3, 4 or 4S or the ITR form filed in TIR 5 or 7.

2.      The EVC would be unique for an Assessee PAN and will not valid for any other PAN at the time of filing of the ITR.

3.      One EVC can be used to validate one return of the assessee irrespective of the AY or return filing type (O/R).

4.      The EVC will be a 10 digit alpha-numeric number.

5.      EVC will be valid for 72 hours or as otherwise specified.

6.      EVC can be generated using different modes and no. of times.

The CBDT has prescribed four modes of Generation of EVC.

1)      Net-Banking:

a)      The assessee should have a bank account with validated PAN as part of KYC.

b)      The bank should be registered with the Tax Department for this purpose.

c)      The assessee can use this facility by using internet banking where he can seek to redirection to e-filing website where he can generate the EVC.

d)      EVC will be displayed and also sent to his validated mobile no. registered with e-filing website.

2)      Aadhaar OTP:

a)      A verifier can provide his Aadhaar number for linking with his PAN on the e-filing website.

b)      Name, Date of Birth and gender should be same on the Aadhaar card and PAN.

c)      Once Aadhaar authentication is successful, an OTP will be sent to Verifier’s mobile no. registered with Aadhaar.

d)      This OTP can be used to verify the assessees return which will be valid for 10 minutes or as specified by UIDAI.

3)      ATM of a Bank:

a)      The assessee should have a bank account with validated PAN as part of KYC.

b)      The bank should be registered with the Tax Department for this purpose.

c)      A verifier can access to ATM using his Debit/Credit card using ATM PIN and generate EVC through the option as will be specified on the ATM screen.

d)      A OTP will be sent on the assessee registered mob no.

4)      Through registered e-mail ID and Mob. No. with e-filing website:

a)      The Total income of the assessee should be Rs. 5 lakhs or below and there is no refund claim.

b)      EVC can be generated on the e-filing website and will be sent to the registered mob no.

c)      This option may further be restricted to assessees based on other risk criteria that may be determined from time to time.

By generating through any mode as mentioned above the assessee can verify the ITR and he will not be required to send the acknowledgement i.e. ITR-V to the CPC. This is a welcome step from the CBDT which will not only reduce the wastage of time and paper work but also fasten the process of processing the return.

(Author may be contacted at navneet.singal@gmail.com )

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