The Central Board of Direct Taxes (CBDT) has made mobile number and email address mandatory for filing income-tax returns in a move that is expected to improve efficiency and add an extra layer of security. This comes a few weeks ahead of this year July 31 return filing deadline.
"A valid email ID and mobile number has to be registered/updated on the e-filing website of the Income Tax Department so that direct communication with taxpayer can be possible," the CBDT said in a release issued late yesterday.
A one-time password will be sent to the email address and mobile phone to be entered by the taxpayer after logging into his account for authentication. The password will be valid for 24 hours. According to tax experts, the validating process will require usage of two separate PINs that will be sent to email address and phone numbers.
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THE NEW PROPOSAL |
Action: One mobile number or email id can be used for 10 accounts as primary contact Benefit: This will help file returns of family members who may/may not have a personal e-mail id Action: Emails and SMSes from I-T Department may be included in the safe list or white list Benefit: Communication from the department will not end up in spam or get rejected Action: One-time password will be sent to cell and email Benefit: Will alert the income-tax assessee if there are any changes being made to the account |
"Since one email address or mobile number cannot be used for more than 10 accounts, this shall pose a problem for consultants or for people who file tax returns for various family members," said Ashish Gupta, partner at tax and audit consultancy KPMG India.
Tax consultants feel the 24-hour password limits the scope for a person to communicate it to the individual or consultant filing his tax return. Also, taxpayers who do not have an Indian mobile number may face problems in authenticating their accounts.
Chartered accounts usually give their email addresses and mobile numbers for all their clients. "As a result, they are allowed make changes in their clients' details as and when required. Such a situation can be both used and misused," said an income tax expert. He added email addresses could be created but consultants and chartered accountants might now prefer to provide the mobile numbers of their clients.
The income tax department has urged taxpayers to complete the validation process at the earliest for smooth filing of returns.