Finance

eReturns

Electronic Furnishing of Return of Income Scheme, 2004

Introduction - Income Tax Department has launched the Electronic Furnishing of Return of Income Scheme, 2004 vide Notification dated 30.9.2004 (Annexure-I). Under this scheme, eligible assessees can file their returns of income electronically through persons authorised to act as e-return intermediaries. The intermediaries will digitise the data of such returns and transmit the same electronically to the e-filing server of Income Tax Department under their digital signatures.

Eligible assessees – Any person, except an Association of Persons/Body of Individuals, who has been allotted a permanent account number(PAN) and who is assessed or is assessable to tax in any of the sixty cities, which are presently on Income Tax network (Refer schedule A of the notification), would be eligible to file his return of income under this scheme. The returns of income required to be filed u/s 139(1) of the Income Tax Act for the assessment year 2004-2005 onwards can be filed under this scheme at the option of the assessee.

Persons eligible for appointment as e-Intermediaries - Following categories of person can apply to become e-intermediaries provided they fulfill the eligibility criteria laid down in the Scheme, and have set up computer hardware and software as prescribed in Schedule B of the Scheme.

• A registered company / statutory body as an employer
• A firm of Chartered Accountants
• A firm of Advocates
• A Chartered Accountant
• An Advocate
• A registered company / bank providing financial services

Registration of e-intermediary - A person eligible to be appointed as e-intermediary will have to apply to the Registrar appointed by CBDT for this purpose. M/s National Securities Depository Ltd. (NSDL) has been appointed as ‘Registrar’ vide CBDT Order F.No.225/109/2004-ITA-II dated 27th October, 2004. The applicant shall have to make an on-line application through web-based facility available on www.tin-nsdl.com . The on-line application shall be signed digitally by either a class II or class III digital certificate. It will have to be followed by sending paper documents of proof of fulfillment of eligibility criteria, a due diligence certificate certifying that the applicant has set up the prescribed hardware & software, application processing fee and refundable security deposit payable to the Registrar, as under to the Registrar :-

Particulars	Amount (Rs.)
Interest Free Security Deposit (Refundable)*	25,000
Application Processing Fee (Non-Refundable)#	2,000
Correction/Updation Processing Fee (Non-Refundable)#	500
Renewal Fee (Non-Refundable)#	2,000

*Security deposit will be refunded if the application is rejected or if a registered e-Return Intermediary surrenders its registration or allows the registration to lapse. # Service Tax will be applicable (at present it is 10.2%).

Detailed Procedure for application is available at www.tin-nsdl.com

The Registrar will verify that the application is complete and all the necessary documents certifying the eligibility conditions have been submitted. The registrar will verify Contents of the registration application Form and the Due Diligence Certificate. Due Diligence Certificates can be issued either by a System Auditor certified by the Information Systems Audit and Control Association (ISACA) or an Authorised Information Systems Auditor (ISA) of Institute of Chartered Accountants of India.

On successful submission of the application, a temporary user ID and password along with the URL for the data transmission test will be communicated to the applicant by the Registrar by e-mail. On receipt of these details the applicant shall log on to the Server of Income Tax Department for passing the data transmission tests before he is authorized to act as e-Intermediary and allotted his E-Return Intermediary Identification Number (ERIIN). The data transmission tests would be carried out on-line to ensure that the applicant has necessary technical skills to transmit data to Income Tax Department Server in safe/secure mode and as per prescribed data structure. These would be on-line and necessary guidelines for taking the same would be available on the Department’s website. After successfully completing the data transmission tests, an appointment order will be issued by Director General of Income-tax (Systems) in his capacity as the e-filing administrator, containing E-Return Intermediary Identification Number (ERIIN) and password valid for two years. These are defined Role and responsibilities of e-return intermediary.

Filing of Return of Income under the e-filing scheme - An eligible person opting to file his return of income under this Scheme shall approach and give his consent to any one of the e-intermediaries to act as his agent for the purpose of furnishing his e-return for the relevant assessment year. The intermediary shall receive the paper return of income, along with all its enclosures, duly verified by the assessee or shall prepare the return of income on the basis of the documents furnished by the assessee, as the case may be. He will then transmit the data of return in the prescribed data structure under his digital signature at http://incometaxindiaefiling.gov.in to Income Tax Department. On successful validation of data structure and PAN, the Department will issue on-line acknowledgement of the return. The e-intermediary will have to submit signed paper return to the Assessing Officer affixing a print out of on-line acknowledgement within 15 days. The date of on-line acknowledgement will be deemed to be the date of filing of the return provided the paper copy is submitted within 15 days. In case the PAN of the assessee is not in the jurisdiction of the Assessing Officer before whom the e-return is being filed, it will be necessary to first get the jurisdiction transferred before filing the e-return under this Scheme before the new Assessing Officer.