E-filing of returns must for people earning over Rs.10 lakh
July, 03rd 2012
The government has made it compulsory for the people earning more than Rs.10 lakh to file their income tax returns electronically.
The Central Board of Direct Taxes (CBDT) has issued a notification making electronically filing (e-fling) of returns compulsory for Assessment Year 2012-13 onwards, according to a statement released by the finance ministry Monday.
E-filing of returns has become compulsory for "an individual or a Hindu undivided family, if his or its total income, or the total income in respect of which he is or it is assessable under the Act during the previous year, exceeds Rs.10 lakh".
It has also become compulsory for an individual or a Hindu Undivided Family, being a resident, having assets (including financial interest in any entity) located outside India or signing authority in any account located outside India.
However, digital signature will not be mandatory for these taxpayers and they can also transmit the data in the return electronically and thereafter submit the verification of the return in Form ITR-V, the finance ministry said.
Filing of returns electronically under digital signatures is already mandatory for all companies.
The Income Tax Department received a record number of 1.64 crore income tax returns electronically in the year 2011-12.
E-filing is an easy, fast and secure method of filing of income tax return. The electronically filed returns are processed at the centralised processing centre, located in Bangalore, Karnatka.
"The processing for e-filed return is faster and taxpayers get their refunds, if due, quickly," the statement said.
The Income Tax Department also provides some value added services like tracking of refunds, viewing tax credit status, e-mail and SMS alerts regarding status of processing and refunds to taxpayers who e-file their returns