CA Certified ITR: Importance of CA certification

CA Certified ITR: The attestation of a Chartered Accountant on a certificate or any document is of immense value since it usually signifies that the CA, in his professional opinion, has ensured that there is no misrepresentation by the entity issuing/submitting such a document. A prime example of this being an audit report issued by the auditor in respect of the financial statements of an entity stating the financial statements reflect a true and fair view of the state of affairs of the entity. It is because of this attestation or signature made by the Chartered Accountant that the investors and other stakeholders can rely on the performance of an entity. One of important Certification is CA certified Income Tax Return (ITR).

CA certified ITR is mainly used in bank for the purpose of loan. Banks at the time of any type of loan ask for certified ITR. Bank are only interested in verifying the applicant’s repayment capacity, for this they accept CA certified ITR due to the following reason:

1. Credibility: A CA certified ITR carries more weight and credibility than a self-filed ITR. It gives the tax authorities the confidence that the return has been filed correctly and with due diligence.

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2. Proof of Income: A CA certified ITR serves as proof of income for various purposes such as obtaining loans, visas, and other financial transactions. It provides a record of your income and tax payments, which can be used as evidence of your financial status.

Some lenders may also ask the borrower to produce their net worth alongside tax documents, which are formed with the expertise of a chartered accountant. Income Tax Return filing could help one with any kind of loan, be it Vehicle (car) Loans, Personal Loans, business loan and the House Loans.

CA certified ITR cannot be True copy

In a set of FAQs about issuing the UDIN, the ICAI said that “Chartered Accountants ( CA ) are not authorised to certify Income Tax Return (ITR) as True copy. However, they can make an opinion/ certificate/ report about ITR based on its source, location and authenticity of data from which ITR is being prepared and UDIN is required while doing so.”

Unique Document Identification Number (UDIN) is a significant step forward in bringing openness to the sector and combating malpractice. UDIN is a number that is assigned to any document in order for legal authorities to verify its legitimacy. The UDIN concept is being implemented with the purpose of reducing fraud in the country.

The banks, regulatory bodies, and third-party stakeholders can simply track the UDIN issued by a Chartered Accountant to any document proving the veracity of the information. Authorities can trace the UDIN to check the CA’s credentials and ensure that the papers are only certified by them.