Money

New Format of ITR-V: Know how advantageous, disadvantageous it’s for you

The new ITR-V now accommodates solely primary particulars of a taxpayer.

The format of Income Tax Return (ITR) Verification Form (ITR-V) has been modified this 12 months. The new ITR-V now accommodates solely primary particulars of a taxpayer – viz. Name, PAN, ITR Form Number, the part underneath which the ITR has been filed and the e-filing Acknowledgement Number.

However, particulars like your revenue, deductions, taxes paid, tax payable, tax refund and so forth have been faraway from the ITR-V.



Background

Be it verified or unverified, ITR-V was the only real doc that was issued on the time of e-filing of return of revenue and was used as ITR proof.

Even after graduation of issuance of Income Tax Return Acknowledgement on verification of ITR-V, each the paperwork have been used as ITR proofs, as there was little or no distinction within the codecs of the 2 paperwork.

To disqualify the unverified ITR-V as a sound ITR proof, the next was talked about within the doc final 12 months that – “This is not a proof for having filed the Return”.

With figures of revenue, deductions, taxes eliminated, ITR-V can not be used as an revenue proof

This 12 months additionally, the Income Tax Department has continued the observe of issuing the each paperwork, however additional modified the format of ITR-V by eradicating the small print of revenue and revenue tax paid.

Advantage

Unverified returns of revenue can not be used as a sound proof of having filed the ITR.

If the ITR-V goes lacking in transit to CPC Bangalore, it may well’t be misused attributable to lack of revenue and tax particulars.

“This decision of the department must be appreciated because it not only prevents the fraud but also reduce the misuse of ITR-V. Earlier, fraudsters used to get illegal access of ITR-V of the honest taxpayers while the said documents were in transit (by post) and used the details of income and income tax paid for carrying out frauds. Now, fraudsters cannot use the ITR-V for carrying out frauds even if they get the illegal access of the same,” stated CA Geetanshu Bhalla, Founder, The Virtual Compliance.

“I think this is a good system of not displaying the numbers. A lot of people manually sign the ITR-V and post it to CPC Bangalore. During the transit, it may get in the hands of wrong people, who may misuse the data. This is a part of data privacy,” stated CA Karan Batra, Founder and CEO, CharteredClub.com.

Disadvantage

There is a priority that taxpayers can not see the small print of revenue and revenue tax uploaded on the revenue tax portal whereas doing the verification for the identical. So, any mistake would go unnoticed and will invite hassle for the taxpayer.

“In my opinion, the uploaded income tax return file is available on the portal in PDF with the name ITR/Form which can be referred by the taxpayer in case of any doubt while verifying the return,” stated Bhalla.

“A person can check the detailed ITR Form if he wants to verify the numbers,” stated Arora.

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