The Central Board of Direct Taxes (CBDT) has amended Income Tax Rule to ease the process of authentication of electronic records in faceless assessment proceedings. It has inserted Rule 14C after the Rule 14B, prescribing manner of authentication of an electronic record under electronic verification code (EVC).
As per the amended rule, 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 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, 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 ease 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.