eReturn Intermediary

Overview

Income Tax Department (ITD) has launched a new scheme for improving interface with the taxpayers. This scheme titled "Electronic Furnishing of Return of Income Scheme, 2004" enables authorized intermediaries to electronically file Income Tax returns on behalf of the taxpayers. This scheme is available to any taxpayer who is assessed or assessable to tax at any of the 60 cities specified by ITD.

Under this scheme an eligible person, at his option, may furnish his return of income which he is required to furnish under sub-section (1) of section 139 of the Act for the assessment year 2004-05 and any subsequent year, through the above-mentioned authorized intermediaries.

These entities that are authorized to file Income Tax returns in electronic form on behalf of taxpayers are called e-Return Intermediaries. e-Return Intermediaries are appointed by ITD.

NSDL has been appointed as the Registrar for processing applications for registration as e-Return Intermediary by eligible entities.

NSDL has setup a web-based facility for online registration of e-Return Intermediaries.

The entities desirous of acting as e-Return Intermediaries may determine their eligibility and ensure that they have met the pre-requisites required for submitting the application. The eligibility criteria and pre-requisites are prescribed by ITD.

Eligible Entities

1. A registered company or a statutory body being an employer which:
   
   
   • has a valid Tax Deduction Account Number (TAN);
   • has at least 100 employees having taxable income as per the last return of tax deducted at source furnished by it;
   • has furnished the return of tax deducted at source within the time prescribed under the Act for the last three years.
   
   
   
2. A firm of Chartered Accountants which:
   
   
   • has, for at least last three years, been in practice in the matters relating to direct taxes.
   • has returned total income of two lakh rupees or more in each of the last two years.
   
   
   
3. A firm of Advocates which:
   
   
   • has, for at least last three years, been in practice in the matters relating to direct taxes
   • has returned total income of two lakh rupees or more in each of the last two years.
   
   
   
4. A Chartered Accountant who;
   
   
   • has, for at least ten years, been in practice in the matters relating to direct taxes;
   • has returned total income of two lakh rupees or more in each of the last two years.
   
   
   
5. An Advocate who:
   
   
   • has, for at least ten years, been in practice in the matters relating to direct taxes;
   • has returned total income of two lakh rupees or more in each of the last two years.
   
   
   
6. A registered company / bank which:
   
   
   • has a net worth of five crore rupees or more
   • is engaged in the business of providing financial services during the last five years

   Pre-requisite

   
   
7. The entity must have Digital Signature Certificate (Class II or Class III) from any of the licensed Certifying Authorities specified by NSDL (currently TCS, IDRBT, SafeScrypt, MTNL and nCode) for the purpose of digitally signing the application and the returns uploaded online.
   
   The digital certificate must be in the name of the applicant. If the digital certificate is in the name of an employee / partner of the applicant, then an authorisation letter by the applicant should be provided on the letterhead of the applicant to NSDL.
   
   
8. Hardware
   
   
   • Intel Pentium IV or above
   • 256 MB RAM
   • UPS power backup for minimum 30 minutes
   • A screen resolution of 800 x 600 pixels and display of 256 colours
   • CD writer/ other backup devices like DAT drive
   • 20 GB free hard disc space exclusive for ITD
   
   
9. Software Requirements
   
   
   • Windows 98 or Windows NT 4.0 Server/ Workstation or Windows 2000
   • Professional/ Server/ Advanced Server or Windows XP
   • Anti-virus (Macfee or Symantec)
   • Internet Explorer 6.0 or above/ Netscape 5.0 or above
   
   
10. Internet Connectivity
    
    
    • Dialup connection 56.6 kbps or above/ ISDN/ Leased Line
    
    
11. The system used to log-on to the computer system of the ITD:
    
    
    • should have no resident/ running programs (other than what is allowed by ITD) ;
    • should have in place security procedure to ensure that there is no misuse.
    
    
12. The entity should have necessary archival, retrieval and security policy for the e-returns that are filed through him.
    
    
13. The entity should submit a due diligence certificate from a certified ISA or CISA professional in the prescribed format that it has the necessary computing infrastructure.
    
    
14. The entity or its Principal / responsible officers, must not have been convicted for any professional misconduct, fraud, embezzlement or any criminal offence by any court in India or by any professional body, as the case may be.
    

Registration - Fee

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

*Interest Free 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 12.24%).

Notes:

1. The correction / modification facility is provided to the e-Return Intermediaries to correct/ modify any details submitted in the application after it has already been submitted to NSDL.
2. Registration is valid for two years. The renewal will be effective from first of April. In case the initial application has been submitted between April and September, for the purpose of renewal it will be assumed that the intermediary was registered for the whole of that financial year. If the application has been submitted between October and March, for the purpose of renewal it will be assumed that the intermediary was registered from the next financial year.

Registration - Procedure

1. An eligible entity shall register online with NSDL at www.tin-nsdl.com by filling up the Registration Form as per the guidelines provided. Physical applications shall not be entertained.
   
   
2. On confirmation of the application an acknowledgment screen containing a unique 15-digit acknowledgment number shall be displayed.
   
   
3. The applicant shall save and print this acknowledgment. The duly signed acknowledgment along-with proof for fulfillment of eligibility criteria, due diligence certificate and requisite payment (application fee plus security deposit) should be sent to NSDL.
   
   
4. Payment can be made either by Cheque or Demand Draft in favour of 'NSDL - ERI' for Rs.27,245/- [interest free security deposit Rs.25,000/- plus application fee Rs.2,245/- (inclusive of service tax currently 12.24%)]. Demand Draft shall be payable at MUMBAI. Applicants making payment by cheque shall deposit a local cheque (drawn on any bank) with any HDFC Bank branch across the country (except Dahej). The cheque should be deposited in the account number '5422320001766'. Name of the applicant and acknowledgment number should be mentioned on the reverse of the Cheque / Demand Draft. List of HDFC Bank Branches
   
   
5. The above-mentioned documents should be sent to NSDL at 'e-Return Intermediary Cell, National Securities Depository Limited, Trade World, 'A' Wing, 4th Floor, Kamala Mills Compound, Senapati Bapat Marg, Lower Parel (W), Mumbai - 400013'.
   
   
6. Superscribe the envelope with 'APPLICATION FOR e-RETURN INTERMEDIARY - ACKNOWLEDGMENT NUMBER' (e.g. 'APPLICATION FOR e-RETURN INTERMEDIARY - 880010100000011').
   
   
7. Acknowledgment along with requisite documents and payment should reach NSDL within 15 days from the date of online application.
   
   
8. On receipt of requisite documents and realisation of payment NSDL will assign a user-id and password. NSDL will also intimate a URL provided to access the ITD web-site specified for upload of data in prescribed format (schema) as provided in e-Filing Schema Developer's Guide . The user-id & password along-with the URL will be intimated by email at the email address provided in the application form.
   
   
9. On receipt of the user-id and password the applicant may log-in to the ITD site and conduct the data transmission test as directed in the ITD site.
   
   
10. On successful completion of this test, ITD will enable the applicant for filing of e-Returns as per the scheme.
    
    
11. For this purpose ITD will provide a unique e-Return Intermediary Identification Number (ERIIN) and password to the applicant.
    
    
12. Status of application will be intimated by e-mail at the e-mail id provided in the application form.
    
    
13. If the application is rejected, NSDL shall refund the security deposit retaining the application processing fee.
    
    
14. For any future correspondence with NSDL the applicant should quote the user-id and password assigned by NSDL.
    

Role & Responsibility

The e-return intermediary shall:

1. ensure that the assessee is an eligible person under this scheme;
2. ensure that the assessee has quoted a correct and valid permanent account number;
3. ensure that the particulars of advance tax, self assessment tax and tax deducted at source are in accordance with the documents enclosed;
4. ensure that the paper return of income has been properly filled-in and duly verified by the assessee, and the enclosures required to be filed with the return of income are enclosed;
5. ensure accuracy of the data entry while transcribing the return of income and during its transmission;
6. ensure that the electronic portion of the return of income is transmitted on or before the due date for filing the return of income;
7. ensure that the paper return is filed with the Assessing Officer having jurisdiction over the concerned assessee;
8. retain for a period of one year from the end of the relevant assessment year the electronic data of the return of income and the information relating to the provisional receipts issued in respect of the returns filed through it;
9. provide to the assessee a paper copy of the e-return submitted by it and the acknowledgement receipt of paper return filed by e-Return Intermediary to the Assessing Officer;
10. maintain confidentiality of the information that comes to its possession during the course of implementation of this scheme and shall not part with any such information to anyone, except with the prior written permission of the assessee or the assessing officer;
11. ensure that all his employees, agents, franchisees, etc., adhere to the provisions of this scheme;
12. promptly inform the Registrar of any change in the particulars given in the application filed by it for registration;
13. abide by the instructions issued by the e-Return Administrator (ITD), from time to time, for proper implementation of this scheme.