The central government has asked individuals with income of over Rs. 10 lakh to electronically file tax returns for 2011-12 , something which was optional till the previous financial year. The recently-introduced tax returns forms also ask individuals to furnish details of donations made for claiming tax deductions.
As per the notification No 14/2012 dated March 28, 2012, an individual, if his total income during the financial year (April to March) exceeds Rs. 10 lakh, shall be required to furnish the return of income electronically (e - Return) under digital signature or transmit the return electronically and, thereafter, submit the verification of the return in Form ITR-V.
Further, resident individual taxpayers need to disclose overseas assets in their tax returns. The move to ask expatriates to furnish details of bank accounts and foreign assets is expected to cause hardship. These individuals pay taxes in India as they earn salaries here.
While these individuals also pay taxes on income accruing from overseas in their home countries, the new provisions will require them to provide details of all income to Indian tax authorities .
The income tax department is set to introduce a free of cost & easy to operate electronic signature facility to file income tax returns electronically.
The facility will help taxpayers who do not have a digital signature. It will save them from the mandatory requirement of sending a hard copy of the return filed electronically through speed post to the department’s central processing centre in Bangalore. Acquiring an electronic signature will not involve any cost for the taxpayer, as it will be provided by the department. Currently, only those having digital signatures acquired through specified vendors by paying the required charges need not send the hard copy of the return to the department after filing electronically.
The electronic signature mode was based on international best practices and would benefit taxpayers as well as the government. The necessary clearances from the MIT (Ministry of information technology) had been taken to introduce the facility. The final approval from the finance ministry to implement it from this year itself is likely soon.
Once implemented, the facility was likely to be extended to the entire tax system. Now, e-filing with a digital signature is compulsory for corporate assesses and for non-corporate assesses liable for audit.
Those who wish to file e-returns without a digital signature need to take a hard copy of the e-filed return and submit it after signing it. E-filing has been made compulsory from the assessment year 2012-13 onwards for individuals and HUFs (Hindu undivided families) if the total income assessable during the previous year exceeds Rs. 10 lakh.
1.6 crore mark..!
The number of e-returns is growing at a phenomenal pace & has crossed the 1.6 crore mark in 2011-12 from about 90 lakh in the previous year.
The move will impact the business of the postal department and vendors in the business of providing digital signatures. To obtain a digital signature, the taxpayer needs to provide his address, an identity proof and a photograph to the vendor with the requisite charges. A digital signature costs Rs. 700 to Rs.1,000.and expires in a year for individuals. For companies, it lasts 2 years. The process for renewing a digital signature is the same as that for applying for a new one.
In the case of an electronic signature, all the required information is already available with the tax department through the PAN (permanent account number) and the tax returns filed earlier.
Safety System ..!
The e-filer will be required to provide certain information on the income tax web site related to the previous year’s return. If the information matches the details already available with the IT department, a unique PIN (Personal Identification Number) would be sent to the taxpayer through mobile phone & email. The taxpayer will have to enter this PIN at the time of e-filing the return. A strong safety system would be put in place so that there was no security risk or possibility of misuse.
Further, resident individual taxpayers need to disclose overseas assets in their tax returns. The move to ask expatriates to furnish details of bank accounts and foreign assets is expected to cause hardship. These individuals pay taxes in India as they earn salaries here.
While these individuals also pay taxes on income accruing from overseas in their home countries, the new provisions will require them to provide details of all income to Indian tax authorities .
The income tax department is set to introduce a free of cost & easy to operate electronic signature facility to file income tax returns electronically.
The facility will help taxpayers who do not have a digital signature. It will save them from the mandatory requirement of sending a hard copy of the return filed electronically through speed post to the department’s central processing centre in Bangalore. Acquiring an electronic signature will not involve any cost for the taxpayer, as it will be provided by the department. Currently, only those having digital signatures acquired through specified vendors by paying the required charges need not send the hard copy of the return to the department after filing electronically.
The electronic signature mode was based on international best practices and would benefit taxpayers as well as the government. The necessary clearances from the MIT (Ministry of information technology) had been taken to introduce the facility. The final approval from the finance ministry to implement it from this year itself is likely soon.
Once implemented, the facility was likely to be extended to the entire tax system. Now, e-filing with a digital signature is compulsory for corporate assesses and for non-corporate assesses liable for audit.
Those who wish to file e-returns without a digital signature need to take a hard copy of the e-filed return and submit it after signing it. E-filing has been made compulsory from the assessment year 2012-13 onwards for individuals and HUFs (Hindu undivided families) if the total income assessable during the previous year exceeds Rs. 10 lakh.
1.6 crore mark..!
The number of e-returns is growing at a phenomenal pace & has crossed the 1.6 crore mark in 2011-12 from about 90 lakh in the previous year.
The move will impact the business of the postal department and vendors in the business of providing digital signatures. To obtain a digital signature, the taxpayer needs to provide his address, an identity proof and a photograph to the vendor with the requisite charges. A digital signature costs Rs. 700 to Rs.1,000.and expires in a year for individuals. For companies, it lasts 2 years. The process for renewing a digital signature is the same as that for applying for a new one.
In the case of an electronic signature, all the required information is already available with the tax department through the PAN (permanent account number) and the tax returns filed earlier.
Safety System ..!
The e-filer will be required to provide certain information on the income tax web site related to the previous year’s return. If the information matches the details already available with the IT department, a unique PIN (Personal Identification Number) would be sent to the taxpayer through mobile phone & email. The taxpayer will have to enter this PIN at the time of e-filing the return. A strong safety system would be put in place so that there was no security risk or possibility of misuse.
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