- Date : 19/12/2020
- Read: 3 mins
Are you wondering about the new ITR-V form and the associated changes? Read this article for answers to your queries.
The Indian Income Tax department has modified the ITR-V (Income Tax Returns – Verification) form for assessment year 2020–2021. Indian taxpayers who were at risk of having their data stolen when their ITR-V forms were on their way to Bengaluru can now rest easy as the forms have been changed.
Earlier, the form used to have a computation table wherein taxpayers were required to mention the relevant amounts. But in the new form, all that’s given is the name of the taxpayer, their signature, and their IT e-filing number. The fraudsters can’t do much now!
Related: How to use the new ITR form?
What are the steps to filing your ITR in 2020–2021?
- Upload your ITR online and note down the e-filing number that is given.
- The new ITR-V form requires your name, PAN, and e-filing acknowledgement number. The duly filled in form should be sent to Bengaluru by normal post or speed post.
- You may e-verify the electronically transmitted returns data through Aadhaar OTP or log in via netbanking or EVC obtained and generated through pre-validated bank account/demat account or EVC generated through bank ATM.
- On successful completion of verification by the Income Tax Central Processing Unit, the return filing acknowledgement can be downloaded from the e-filing portal as proof.
What are the advantages of the new ITR-V form for 2020-2021?
With the recent changes, filing of taxes has become a little safer. No longer is the taxpayer required to disclose their income and investment amounts as earlier. The advantage is that the communication of income remains between the taxpayer and the tax department; there’s no chance of any fraudsters getting their hands on this information.
Doing away with the columns specifying tax deductions, tax payable, tax savings, and tax exempted, wherein the taxpayers had to mention the amounts, has dealt a solid blow to fraudsters who relied on such sensitive information.
Does the new ITR-V form have any disadvantages?
There aren’t any apparent disadvantages to this new format, as only an online download of the Indian Income Tax Return Acknowledgement would have details of income and investment. The current ITR-V form represents nothing beyond a declaration that the taxpayer has filed their tax returns.
Earlier, a taxpayer had to show the ITR-V form as documented proof of filing their ITR. This is not possible any more as the new form is nothing more than a declaration by the taxpayer that they have filed their taxes, which is yet to be verified. The change is highly desirable as the government is trying to attract more citizens into the tax net. After all, safer tax filing can only lead to greater compliance from the general public. Here are some tax filing tips for salaried employees for FY 2019-20.