ITR-V: The format of the Income Tax Return Verification Form ITR-V has changed from this time. Under this new format, basic details of the taxpayer will remain in ITR-V. Such as name, PAN number, ITR form number, information of the section under which ITR is filed and e-filing acknowledgement number. This time information like income, deductions, tax paid, tax liability and tax refund has been removed from it.
Some rules were changed last year too
- Earlier, at the time of e-filing of the return of income, the only document ITR-V is issued and whether it is verified or not, it could also be used as ITR proof.
- At the time of verification of ITR-V, income tax return acknowledgement could also be used as ITR proof.
- There was not much difference between these two documents, so both of them could be used as ITR proof.
- Now, you will not be able to use unverified returns of income as valid proof of ITR filing that you have filed ITR.
- Last year, to dismiss the unrecognized ITR-5 as proof of return, it was mentioned in the document that it is not proof of filing the return.
- The Income Tax Department is also issuing both these documents this year, but the format of ITR-5 has changed.
Data privacy will be ensured
- If sending via post to the Income Tax Department’s office in Bangalore is lost somewhere between the ITR-V, then it will not be misused due to lack of information about income and tax details.
- CA Geetanshu Bhalla, founder of The Virtual Compliance, says that this initiative of the Income Tax Department is laudable as the fraudsters will no longer be able to misuse ITR-5. Earlier, when an ITR-5 of an honest person fell into the hands of a wrong person, then he could misuse the income and tax paid information given in it.
- CA Karan Batra, Founder and CEO of CharterClub.com, says that many people used to manually sign ITR-5 and send it to the Income Tax Department in Bangalore, which sometimes got misused and misused. According to Batra, this initiative of the department is a part of data privacy.
More caution will have to be taken during verification
- With this initiative of the Income Tax Department, where data privacy is being ensured, there are also its disadvantages. Now taxpayers will not be able to see the income and income tax information uploaded during the verification on the income tax portal. Because of this, if there is a mistake, then it will not be able to catch it and taxpayers may have problems later.
- Geetanshu Bhalla has advised that before verifying the return, it should be merged with the income tax return file available as a PDF on the portal. The ITR form should be checked once again before verifying.