Important Update: Income Tax Audits Now Accept Aadhaar OTP, Eliminating Need for Digital Signature

The Income Tax Department now allows individual taxpayers undergoing tax audits to use an Aadhaar One-Time Password (OTP) instead of a Digital Signature Certificate (DSC) for audit approval. Previously, there was no legal requirement for individuals to use DSCs for tax audit approvals. The Income Tax Portal has been updated to facilitate this change. Taxpayers can log in to the e-Filing portal, navigate to the tax audit approval section, and choose the Aadhaar OTP verification method during form submission. They will receive an OTP on their Aadhaar-registered mobile number, which they must enter to complete the verification. While DSCs, the electronic equivalent of physical signatures, are used to e-Verify tax returns and other documents, they remain mandatory for certain filings. Users must register their DSC with the e-Filing system before signing or verifying any document.