Every income tax return filed must be mandatorily signed by the appropriate person (authorised by tax law) confirming that the information given in the return are correct and in accordance with the income tax law and also confirming that he/she is the competent person to make and verify the return.
In this article we will be discussing a little more in detail as regards who is authorized to sign an income tax return.
1. Who is the authorised person who can verify and sign the income tax return?
Section 140 of the Income-tax Act, 1961 prescribes who can sign an income tax return for each type of taxpayer attempting to file his return. This has been discussed below:
|Category of taxpayer||Who must sign?|
Guardian or any other person competent to act on individual’s behalf in case individual is mentally incapacitated from attending to his affairs
Any person authorised by an Individual to verify and sign the return through valid power of attorney, if individual is absent from India/ if for any other reason it is not possible for an individual to to verify the return.
(Power of attorney shall be kept with the person signing the return for the purpose of records for any future reference)
|Hindu Undivided Family (HUF)||Karta of the HUF
Any other adult member of such HUF if karta is absent from India or is mentally incapacitated from attending to his affairs
|Indian Company||Managing Director
Any director if such managing director is not able to verify and sign the return for any unavoidable reason or if there is no managing director
|Foreign company||May be verified by a person holding valid power of attorney from such company to verify and sign the return (POA shall be maintained for the purpose of records for future reference)|
|Company is being wound up (whether by the court order or otherwise) or where any person has been appointed as receiver of assets of the company||Liquidator of the company or the person who has been appointed the receiver of assets of the company (Section 178(1))|
|Company whose management is taken over by Central/State Government under any law||Principal officer*|
|Company whose application for corporate insolvency resolution process has been admitted by the Adjudicating Authority under Insolvency and Bankruptcy Code, 2016||Insolvency professional** appointed by such Adjudicating Authority**
**as defined under Insolvency and Bankruptcy Code, 2016
Any partner not being a minor (if the managing partner is unable to verify and sign the return for any unavoidable reason or if there is no managing partner)
|Limited Liability Partnership (LLP)||Designated partner
Any partner if such designated partner is unable to sign and verify the return for any unavoidable reason or if there is no designated partner
|Local authority||Principal officer*|
|Political party||Chief executive officer of such party irrespective of the nomenclature of his designation|
|Any association||Any member of the association or the principal officer*|
|Other person||That person himself/herself
Any person competent to act on his behalf
*Principal Officer with respect to any local authority, company, public body, association of persons or body of individuals is defined under Section 2(35) of Income-tax Act, 1961 and it means:
- secretary, treasurer, manager or agent of the authority, company, association or body, or
- any person connected with the management or administration of the local authority, company, association or body upon whom the Assessing Officer has served a notice of his intention of treating him as the principal officer
2. Verification of an Income tax return
Every return of income is supposed to be verified (authenticated) and then signed by the abovementioned authorized persons. There is a separate verification tab in every return where the signature of th authorized person is affixed where he also mentions the capacity in which he is signing the return.
Eg. In case of a company, if the Managing Director is signing it, in the blank space adjacent to capacity, he is supposed to fill in “managing director”.
This is how the verification space in a return looks