Return by whom to be verified.
- The return of income under section 263 required to be furnished by the person specified in column B of the Table below shall be verified by the person specified in corresponding entry in column C of the said Table: ---table---
Section Summary:
Section 265 of the Income Tax Act specifies who is responsible for verifying the income tax return (ITR) filed under Section 263. The section provides a table that lists the persons required to file the return (Column B) and the corresponding individuals or entities responsible for verifying the return (Column C). This ensures that the correct person or authority validates the accuracy of the return.
Key Changes:
This section is not a new provision but rather a procedural clarification. It aligns with the broader framework of the Income Tax Act, ensuring that the verification process is clearly defined for different categories of taxpayers. There are no significant amendments compared to the prior Income Tax Act, but it reinforces the importance of proper verification to maintain compliance.
Practical Implications:
- For Individuals: If you are an individual taxpayer, you are typically responsible for verifying your own return. However, in cases where you are unable to do so (e.g., due to illness or absence), a legally authorized representative may verify the return on your behalf.
- For Businesses: In the case of companies, partnerships, or other entities, the verification must be done by the authorized signatory, such as a director, partner, or managing trustee, depending on the entity type.
- For Representatives: Legal representatives, guardians, or trustees must verify returns for minors, incapacitated persons, or estates they manage.
Critical Concepts:
- Verification: This is the process of confirming that the information provided in the ITR is true and accurate. It is a legal declaration that the taxpayer stands by the details submitted.
- Authorized Signatory: For entities like companies or partnerships, the person legally authorized to act on behalf of the entity (e.g., a director or partner) must verify the return.
Compliance Steps:
- Identify the Verifier: Refer to the table in Section 265 to determine who is responsible for verifying the return based on the taxpayer’s category (individual, company, trust, etc.).
- Sign the Verification: The designated person must sign the verification section of the ITR, either physically or electronically, depending on the filing method.
- Submit the Return: Ensure the verified return is submitted within the prescribed deadline to avoid penalties.
Examples:
- Individual Taxpayer: Mr. Sharma, a salaried individual, files his ITR and verifies it himself by signing the verification section.
- Company: ABC Pvt. Ltd. files its ITR, and the verification is done by its Managing Director, as they are the authorized signatory.
- Trust: A charitable trust files its ITR, and the verification is completed by the managing trustee, who is legally authorized to act on behalf of the trust.
This section ensures accountability and accuracy in the tax filing process by clearly defining who is responsible for verifying the return.