Modes of e-verifying Income Tax returns for NRIs

Modes of e-verifying Income Tax returns for NRIs

Process Note on the Modes of E-verification of Returns for NRI’s

KORAH AND KORAH, CHARTERED ACCOUNTANTS

 

A. The different modes available for NRI’s are as follows:

✓  Aadhaar OTP
✓  Electronic Verification Code using a Bank Account
✓  Electronic Verification Code using the Demat Account
✓  Net Banking

 

B. Pre-requisites for availing these services
e-Verification MethodPre-requisite
OTP on mobile number registered with AadhaarPAN is linked with Aadhaar
Bank Account EVC / Demat Account EVCPre-validated and EVC-enabled bank / Demat account
Net BankingPAN linked with your bank account and net Banking should be enabled for the preferred bank account

 

C. Procedures

a) e-Verification by generating Aadhaar OTP

Step 1: On the e-Verify page, select ‘I would like to verify using OTP on mobile number registered with Aadhaar’ and click ‘Continue’.

Step 2: On the Aadhaar OTP page, select the ‘I agree to validate my Aadhaar Details’ checkbox and click ‘Generate Aadhaar OTP’.

Step 3: Enter the 6-digit OTP received on mobile number registered with Aadhaar and click ‘Validate’.

b) e-Verification by generating Electronic Verification Code (EVC) through Bank Account

Step 1: On the e-verification page, select ‘Through Bank Account’ and click ‘Continue’.

Note:EVC will be generated and will be sent to the mobile number and email ID registered with the pre-validated and EVC enabled bank account.
Also please note that for enabling EVC through bank account, the same must be integrated with e-filing. Following are the list of banks integrated with e-filing:
✓  Canara Bank
✓  Central Bank of India
✓  City Union Bank Ltd
✓  Federal Bank Ltd
✓  HDFC Bank Ltd
✓  ICICI Bank Ltd
✓  IDBI Ltd
✓  Karur Vysya Bank
✓  Kotak Mahindra Bank
✓  State Bank of India
✓  UCO Bank
✓  Axis Bank
✓  Indian Bank
✓  Indusind Bank Ltd
✓  Karnataka Bank Ltd
✓  Yes Bank Ltd

In case if the taxpayer does not possess bank accounts in any of the banks listed above and fails to verify his return using any of the verification methods (i.e., using DSC/ EVC/ Aadhaar OTP/ Physical Verification), an alternative facility has been provided by the new Income Tax Portal to e-verify return with an acknowledgement number and a valid 10-digit mobile number.

Step 2: Enter the EVC received on mobile number and email ID registered with the bank account in the ‘Enter EVC’ textbox and click ‘e-Verify’.

c) e-Verification after generating Electronic Verification Code (EVC) through Demat Account

Step 1: On the e-Verification page, select ‘Through Demat Account’ and click ‘Continue’

Note: EVC will be generated and will be sent to your mobile number and email ID registered with the pre-validated and EVC-enabled Demat account.

Step 2: Enter the EVC received on mobile number and email ID registered with the demat account in the ‘Enter EVC’ textbox and click ‘e-Verify’.

d) e-Verification using Net Banking

Step 1: On the e-Verification page, select ‘Through Net Banking’ and click ‘Continue’.

Step 2: Select the bank through which you want to e-verify and click ‘Continue’.

Step 3: Read and understand the disclaimer. Click ‘Continue’ and the taxpayer will be redirected to Net Banking login page of the Bank Account.

Step 4: Log in to your Net Banking using your Net Banking user ID and password.

Step 5: Click the link to log in to e-Filing from your bank’s website. On successful login, go to the respective ITR and click ‘e-Verify’. The ITR will be e-Verified successfully.

Tax Deducted at Source – Section 194C

Tax Deducted at Source – Section 194C

Tax Deducted at Source – Section 194C

(Angeleena Roy, Articled Associate)

 

192 : Salary
  • Deals with tax deducted at source (TDS) on salary.
  • The employer is responsible for deducting TDS on an average rate of income tax based on the current slab rate during the relevant financial year by considering the estimated income.
  • The TDS deducted u/s 192 is reflected in Form 16, which is issued by the taxpayer at the end of the financial year.

 

“Work” Includes
  • Advertising
  • Broadcasting and telecasting including production of programs for such broadcasting or telecasting
  • Carriage of goods and passengers by any mode of transportation, other than railways
  • Catering
  • Manufacturing or supplying of a product according to the requirement or specification of a customer by using the materials purchased from such customer

(Work does not include manufacturing or supplying of a product according to the requirements or specifications of a customer by using the materials purchased from a person, other than such a customer.)

 

“Specified person” shall mean,—

(a) the Central Government or any State Government; or
(b) any local authority; or
(c) any corporation established by or under a Central, State or Provincial Act; or
(d) any company; or
(e) any co-operative society; or
(f) any authority, constituted in India by or under any law, engaged either for the purpose of dealing with and satisfying the need for housing accommodation or for the purpose of planning, development or improvement of cities, towns and villages, or for both; (example: CIDCO , HUDCO)or
(g) any society registered under the Societies Registration Act, 1860 (21 of 1860) or under any law corresponding to that Act in force in any part of India; or
(h) any trust; or
(i) any university established or incorporated by or under a Central, State or Provincial Act and an institution declared to be a university under section 3 of the University Grants Commission Act, 1956 (3 of 1956); or
(j) any Government of a foreign State or a foreign enterprise or any association or body established outside India; or
(k) any firm; or
(l) any person, being an individual or HUF or an AOP or a BOI subject to Tax audit u/s 44AB(a)/(b) in the immediately preceding FY

44AB (a)/(b)
[has total sales, gross receipts or turnover from business or
profession carried on by him exceeding 1 crore rupees in case of business or 50 lakh rupees in case of profession]

 
Threshold Limit

TDS is to be deducted under this section if,

  • Amount credited or paid or likely to be credited or paid to a contractor or subcontractor
    • exceed Rs. 30,000 in a single payment

OR

    • Rs. 1,00,000 in the aggregate during the FY
Rate of TDS?
Sl NoNature of PaymentTDS Rate if PAN Available
1Payment / Credit to resident individual or HUF1%
2Payment / Credit to any resident person other than individual/HUF2%
3Payment / Credit to transportersNIL

*If PAN not available? 
TDS RATE = 20%

Non applicability of TDS u/s 194 C
  • No deduction is required to be made from any sum credited or paid or likely to be credited or paid during the PY to the account of a contractor ,
  • During the course of the business of plying, hiring, or leasing goods carriages,
  • If the following conditions are fulfilled :