Bye-Bye DSC: Tax Audit Report can be approved without DSC

 

One of the biggest uses of DSC was under the Income Tax Act – 1961 wherein the DSC was mandatory for all the taxpayers. Now, the mandatory use of DSC has been done away with for the Individual & HUF taxpayers. Now, all Individual & HUF taxpayers who are required to get the books of accounts audited under the Income Tax Act -1961 can approve the audit report without DSC. The validation can be done through Aadhar OTP.

Tax Audit Report can now be furnished/ approved by the assesses with Aadhar OTP or Other EVC modes.

The short overview of the recent development is summarised as under:

1. Mandatory requirement of Digital Signature has been done away with.

2. The immunity is now available only to Individual & HUF taxpayers. Other taxpayers such as Firm/LLP/Companies/Trust etc. will be required to approve the audit report through DSC Only.

3. The necessary amendment has been done in Rule 12(3) via Income Tax (Amendment) Rules 2024 effective from 1st April 24 issued via NNO. 19/2024.

4. The mandatory requirement of a digital signature for Tax Audit Reports has been eliminated. Now, assesses can furnish or approve Tax Audit Reports using Aadhar OTP or other Electronic Verification Code (EVC) modes.

5. The removal of the use of DSC is taken to provide the ease of business to the taxpayers. Ultimately, the OTP also serves the purpose equivalent to that of DSC as the audit report is approved with the use of Aadhar OTP.

Let us hope the facility is also extended to Firms, LLPs, Companies, Trusts, etc in years to come.