Saturday, May 18News That Matters

e-filing of Income tax return mandatory if income exceeds Rs 10 lakhs


Whether your income for the Financial Year 2011-12 i.e for period of April 2011 – March 2012 (Assessment Year 2012-13)  is more than Rs 10 lakhs ???

If yes, You need to compulsorily file the Income tax return electronically.

E-filing of Income tax returns has been made compulsory for the person who is an individual or a Hindu Undivided Family, if his or its total income exceeds Rs 10 lakhs.

E-filing for such individuals was optional till 2010-11.

For filing the return online, having Digital Signature is NOT Compulsory. Returns can be filed with or without digital signature.

In case the returns are filed with digital signature, no further action is required.

In case returns are filed without using a digital signature, tax payer needs to send ITR-V (Acknowledgement) to the Income Tax department.

IMPORTANT Note –  Total Income is NOT equal to your CTC / salary package. Your salary package may be Rs 11 lakhs, but after taking HRA, LTA, Medical into account, your Total Income (under Income Tax Act) may be lower. In such cases, it is NOT compulsory to file IT returns online.

Income Tax Department had received a record number of 1.64 crore e-Returns in 2011-12 financial year.

The processing for e-filed return is faster and taxpayers get their refunds, if due, quickly.  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.

CBDT has issued notification S.O. 626(E), dated 28th March 2012
e-filing of IT Return has also been made compulsory for an individual or a Hindu Undivided Family (HUF), being a resident, having assets (including financial interest in any entity) located outside India or signing authority in any account located outside India and required to furnish the return in Form ITR-2 or ITR-3 or ITR-4.

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