E-filing: I-T dept to send 24-hour valid password to taxpayers

Move aimed at doing away with the system of sending paper acknowledgement

Transition towards paper-less system

• New ITRs will capture the Aadhaar number of an individual and after doing a "back end" matching of Aadhaar number with mobile number, an OTP will be generated for validating and submission of the return
• The OTP will be sent on the mobile phone and it will be valid for 24 hours
• After putting the OTP, sending the ITR-V (paper acknowledgement) won't be required

Delhi, June 29

In order to end the trouble of sending paper-based acknowledgement of e-filed Income Tax Returns (ITRs), the CBDT is planning to send a one-time password (OTP) on taxpayers' mobile phones which will be valid for 24 hours after getting verified from the Aadhaar database. 

The department, a senior official said, has decided to usher these new protocols very soon as the new ITRs for the Assessment Year 2015-16 have recently been notified, heralding the onset of the tax filing season. 

The deadline for filing ITRs is August 31. 

A senior official involved in the processes said the new ITRs will capture the Aadhaar number of an individual and after doing a "back end" matching of the Aadhaar number with the mobile number and other vital personal data of the individual, an OTP will be generated and sent for validating and final submission of the return. 

"The department will do the matching with the Aadhaar database where the biometrics and particulars of an individual are hosted. If the Aadhaar number and relevant details like PAN number and mobile number get kind of matched, then an OTP will be sent on the mobile which will be valid for 24 hours. So, once you have uploaded your return (ITR), there will be an icon showing validate your return and with that OTP you can do that," the official explained. 

The official said the department was currently thinking of having an OTP that will be "alive or valid" for 24 hours so that a filer has time at hand to process the return at his or her end. 

"There could be an option to generate a second OTP too but that is being worked out. After putting the OTP, you then don't need to send the ITR-V (paper acknowledgement). 

The problem of ITR-V will get resolved," the official said. 

 By automating the e-ITR filing with an OTP, the CBDT also wants to make this system fully "paperless". 

The system of Aadhaar-based authentication is being extended by the tax department to "low-risk category" of taxpayers like those in the salaried category. 

As per existing rules, a person who files his or her tax return online, has to send a copy of the ITR-V to CPC within 120 days for processing of the return. — PTI