Income Tax Return: Professionals or other people who do not get regular salary can use Income Tax Return (ITR) as income proof. They need to show income proof, apply for loans, take insurance cover and buy property or other valuable assets. The biggest advantage of filing ITR regularly is that it shows your regular income. There is information about tax paid on income in the assessment year given in ITR.
ITR-V as income proof after e-filing starts
The ITR verification form (ITR-5) could be used as proof of filing the return, whether it was signed and sent to CPC Bangalore or electronically based on OTP, EVC or NET, since the commencement of ITR’s e-filing. Even if it is not verified through banking.
After this, the income tax return was brought to the acknowledgment, which was considered to be the proof of the verified return of income. Despite this, ITR-5 is still considered to be ITR-proof as there was no significant difference between the two.
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ITR-V changed rules last year
Last year, a sentence was written at the end of the document to prevent unverified ITR-5 from being produced as proof of income return file. This sentence is, ‘This is not a proof for having filed the Return’ (this is not proof of filing a return). In order to prevent it from being used as ITR proof, information about income, deductions, tax etc. was removed. Now, in addition to the information of name, PAN, acknowledgment number, the section number under which the return has been filed, is also known. From now on, ITR-5 can be used as proof of income only when it is verified.
Income tax return acknowledgment will also be considered income proof
Many people have complained about this initiative of the Income Tax Department that now they have to show complete ITR to the third party as income proof, whereas earlier this work was done only by ITR-5. However, CA Geetanshu Bhalla, founder of Virtual Compliance, considers this complaint as baseless. They say that there is still no need to give complete ITR, but this work will also be done through Income Tax Return Acknowledgment. There is not much difference between it and ITR-5. Bhalla believes that soon ITR Knowledge can be sought in Third Parties, Passport Office, Foreign Embassies, Financing Companies, Banks, Schools and other third parties.
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Be careful while filing details
Bhalla says that now there is a need to be more careful while filing the details as there are no figures on ITR-5 during verification. He said that in case of any doubt while verifying the returns, one can see the file uploaded as a PDF on the Income Tax portal.