Important Update: Income Tax Audits Now Accept Aadhaar OTP, Eliminating Need for Digital Signature

The Income Tax Department has announced that individual taxpayers undergoing tax audits no longer need a Digital Signature Certificate ( DSC ) to approve their audits. Instead, they can now use an Aadhaar One-Time Password ( OTP ) for this purpose.

There was no provision in the Income Tax Act mandating individuals to use Digital Signatures for the approval of tax audits. Recognizing this, the Income Tax Department has now updated the Income Tax Portal, enabling individual taxpayers to approve their tax audits using an Aadhaar OTP

Step-by-Step Guide:

1. Select the Request to be Accepted:
   ○ Log in to the e-Filing portal.
   ○ Navigate to the section where you can choose the request related to tax audit approval.
2. Select Method for Verification:
   ○ During the form submission process, opt for the Aadhaar OTP verification method.
3. Form Submission and Verification:
   ○ After selecting the Aadhaar OTP option, you will receive an OTP on your mobile number registered with Aadhaar.
   ○ Enter the OTP in the provided field to complete the verification process

DIGITAL SIGNATURE CERTIFICATE

A Digital Signature Certificate ( DSC ) is the electronic equivalent of a physical certificate, serving as proof of identity for individuals or organisations online. It authenticates electronic documents in the same way a handwritten signature validates printed or handwritten documents. DSC can be used to e-Verify returns filed by taxpayers and is mandatory in some cases. e-Filing users need a DSC to sign Income Tax Returns, statutory forms, or to verify responses to notices from the Income Tax Department and refund reissue requests. The users must register their DSC with the e-Filing system before signing or verifying any document

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