Taxpayers to get digital signatures

New Delhi: The Income Tax department has decided to bring in the facility of electronic signatures for taxpayers to endorse their bonafides. The Central Board of Direct Taxes (CBDT), the apex office will alsoimplement the new mechanism by the end of the next financial year in March, 2015. The CBDT will get in touch with the Union Ministries of Law and Communications and Information Technology in order to establish the legal position and technology requirements respectively before it operationalises the new protocols for the e-returns called 'ITRV'.

"It has to be seen what will be the procedure to obtain electronic or digital signature by the taxpayers. There should not be an additional cost or procedural burden for the taxpayer who opts to file his or her I-T return online," said a senior official. In case of digital signatures (used by corporate entities as of now), a bonafide statement that verifies the identity of the sender needs to be created by paying a fee and this requires regular renewal, which is why this is being seen as a burden on salaried class and other categories of small taxpayers.

The department, within the same time-frame, is also desirous of enabling the e-filing of Tax Deducted at Source (TDS) statements through its official web portal which is used by taxpayers currently to file their electronic returns. As per the norms, a taxpayer who files an e-return has to mandatorily send a copy of the same by post to the I-T department's Central Processing Centre (CPC) in Bengaluru.