Friday 3 May 2013

CBDT Notification

CBDT mandates e-filing of audit report and return with 5 lacs income; no more ITR 1 if Sec. 10 benefit exceeds 5k

Audit report to be filed electronically; threshold limit for e-filing of return reduced to Rs. 5 lakhs; return can’t be filed in ITR-1 if assessee earns exempt income which exceeds 5,000.
Income-tax (3rd Amendment) Rules, 2013 redefines the conditions and eligibility to choose from a variety of Income-tax return forms. In addition, certain important amendments are also being brought in, which are as follows:
1) Return in ITR 1 can’t be filed if assessee incurs losses under the head ‘Income from other sources’.
2) Return in ITR 1 can’t be filed if assessee claims tax relief or has any income which is exempt under Chapter III. i.e. section 10, 10A, 10AA, etc.
3) Return in ITR 4S can’t be filed if assessee claims tax relief or has any income which is exempt under Chapter III. i.e. section 10, 10A, 10AA, etc.
4) Mandatory e-filing of audit reports.
5) Mandatory e-filing of return if income exceeds Rs. 5,00,000 or if assessee claims tax relief.


FULL DOCUMENT
CBDT mandates e-filing of audit report and return with 5 lacs income; no more ITR 1 if Sec. 10 benefit exceeds 5k
Income-tax (3rd Amendment) Rules, 2013 redefine the conditions and eligibility to choose from a variety of Income-tax return forms. In addition, certain important amendments have also been made in, which are as follows:
Form Existing position New Position
Form Sahaj
(ITR 1) Return in ITR 1 can't be filed if assessee incurs losses under the head 'Income from other sources'
An individual if his total income includes:
(a) Salary and family pension;
(b) Income from one house property (excluding losses);
(c) Income from other sources but does not include:
• Winnings from lottery; and
• Winnings from horse races. An individual if his total income includes:
(a) Salary and family pension;
(b) Income from one house property (excluding losses);
(c) Income from other sources but does not include:
• Winnings from lottery;
• Winnings from horse races; and
• Loss under this head.
Form Sahaj
(ITR 1) Return in ITR 1 can't be filed if assessee claims tax relief or has any income which is exempt under Chapter III
Return in ITR 1 cannot be filed by a resident person (other than not ordinarily resident in India), if he has:
(a) Any asset (including financial interest) located outside India;
(b) Signing authority in any account located outside India. Return in ITR 1 cannot be filed by a resident person (other than not ordinarily resident in India), if he has:
(a) Any asset (including financial interest) located outside India;
(b) Signing authority in any account located outside India;
(c) Claimed any relief of tax under Section 90, 90A or 91;
(d) Incomme exceeding Rs. 5,000 which is not chargeable to tax. In other words, if assessee claims exemption in respect of any income under Section 10, 10A, 10AA, etc.
Form Sugam
(ITR 4S) Return in ITR 4S can't be filed if assessee claims tax relief or has any income which is exempt under Chapter III
Return in ITR 4S cannot be filed by an Individual or a HUF deriving income as referred to in Sections 44AD or 44AE, if it has:
(a) Any asset (including financial interest) located outside India;
(b) Signing authority in any account located outside India. Return in ITR 4S cannot be filed by an Individual or a HUF deriving income as referred to in Sections 44AD or 44AE, if it has:
(a) Any asset (including financial interest) located outside India;
(b) Signing authority in any account located outside India;
(c) Claimed any tax relief under Section 90, 90A or 91;
(d) Income exceeding Rs. 5,000 which is not chargeable to tax. In other words, if assessee claims exemption in respect of any income under Section 10, 10A, 10AA, etc.
Audit Report Mandatory e-filing of audit reports
No such requirement E-filing of following audit reports shall be mandatory in following cases:
(a) Audit report under Sec. 44AB in respect of books of account;
(b) Audit report under Sec. 92E in respect of international transaction; or
(c) Audit report under Sec. 115JB in respect of MAT computation.
Mandatory e-filing of return Mandatory e-filing of return if income exceeds Rs. 5,00,000 or assessee claims tax relief
It is mandatory for an individual or an HUF to e-file the return of income if its total income exceeds Rs. 10,00,000 (a) It is mandatory for every person (not being a co. or a person filing return in ITR 7) to e-file the return of income if its total income exceeds Rs. 5,00,000
(b) Every person claiming tax relief under Section 90, 90A or 91 shall file return in electronic mode.

List of forms to be used by different persons for filing of return of income for the Assessment Year 2013-14
Individual and HUF
Nature of income ITR 1 (Sahaj) ITR 2 ITR 3 ITR 4 ITR 4S (Sugam)
Income from salary/ pension Yes Yes Yes Yes -
Income from one house property (excluding losses) Yes Yes Yes Yes -
Income or losses from more than one house property - Yes Yes Yes -
Income not chargeable to tax which exceeds Rs. 5,000 - Yes Yes Yes -
Income from other sources (other than winnings from lottery and race horses or losses under this head) Yes Yes Yes Yes -
Income from other sources (including winnings from lottery and race horses) - Yes Yes Yes -
Capital gains/loss on sale of investments/ property - Yes Yes Yes -
Share of profit of partner from a partnership firm - - Yes Yes -
Income from proprietary business/ profession - - - Yes -
Income from presumptive business - - - - Yes
Details of foreign assets - Yes Yes Yes -
Claiming relief of tax under sections 90, 90A or 91 - Yes Yes Yes -


Other Assesses
Nature of income ITR 5 ITR 6 ITR 7
Firm Yes - -
Association of persons (AOP) Yes - -
Body of Individuals (BOI) Yes - -
Companies other than companies claiming exemption under Sec. 11 - Yes -
Persons required to furnish return under:
(1) Section 139(4A);
(2) Section 139(4B);
(3) Section 139(4C); and
(4) Section 139(4D)

- - Yes
NOTIFICATION
INCOME-TAX (THIRD AMENDMENT) RULES, 2013 - AMENDMENT IN RULE 12 & SUBSTITUTION OF FORMS SAHAJ (ITR-1), ITR-2, ITR-3, SUGAM (ITR-4S), ITR-4 AND ITR-V
NOTIFICATION NO. 34/2013 [F.NO.142/5/2013-TPL]/SO 1111(E), DATED 1-5-2013
In exercise of the powers conferred by section 295 of the Income-tax Act, 1961 (43 of 1961), the Central Board of Direct Taxes hereby makes the following rules further to amend the Income-tax Rules, 1962, namely:—
1. (1) These rules may be called the Income-tax (3rd Amendment) Rules, 2013.
(2) They shall be deemed to have come into force with effect from the 1st day of April, 2013.
2. In the Income-tax Rules, 1962 (hereinafter referred to as the said rules), in rule 12,—
(a) in sub-rule (1),-
(A) for the figures "2012", the figures "2013" shall be substituted;
(B) in item (a),—
(i) in sub-item (iii), after the words "income from race horses", the words "and does not have any loss under the head" shall be inserted;
(ii) for the proviso, the following proviso shall be substituted, namely:—
"Provided that the provisions of this clause shall not apply to a person who,-
(I) is a resident, other than not ordinarily resident in India within the meaning of sub-section (6) of section 6 and has,—
(i) assets (including financial interest in any entity) located outside India; or
(ii) signing authority in any account located outside India;
(II) has claimed any relief of tax under sections 90 or 90A or deduction of tax under section 91; or
(III) has income not chargeable to tax, exceeding five thousand rupees.";
(C) in clause (ca), for the proviso, the following proviso shall be substituted, namely:—
"Provided that the provisions of this clause shall not apply to a person who,-
(I) is a resident, other than not ordinarily resident in India within the meaning of sub-section (6) of section 6 and has,—
(i) assets (including financial interest in any entity) located outside India; or
(ii) signing authority in any account located outside India;
(II) has claimed any relief of tax under sections 90 or 90A or deduction of tax under section 91; or
(III) has income not chargeable to tax, exceeding five thousand rupees.";
(b) in sub-rule(2), the following proviso shall be inserted, namely:-
"Provided that where an assessee is required to furnish a report of audit under sections 44AB, 92E or 115JB of the Act, he shall furnish the same electronically.";
(c) in sub-rule (3), in the proviso,-
(A) in clause (a),—
(i) for the words "an individual or a hindu undivided family", the words "a person, other than a company and a person required to furnish the return in Form ITR-7" shall be substituted;
(ii) for the words "ten lakh rupees" the words "five lakh rupees" shall be substituted;
(iii) for the figures "2012-13", the figures "2013-14" shall be substituted;
(B) after clause (aaa), the following clause shall be inserted, namely:-
"(aab) a person claiming any relief of tax under section 90 or 90A or deduction of tax under section 91 of the Act, shall furnish the return for assessment year 2013-14 and subsequent assessment years in the manner specified in clause (ii) or clause (iii);"
(C) in clause (b), after the words, brackets and figure "in clause (i)", the words, brackets and figures "or clause (ii) or clause (iii)" shall be inserted.
(d) in sub-rule 4, after the words, brackets and figures "of sub-rule (3)", the words and figures "and the report of audit in the manner specified in proviso to sub-rule (2)" shall be inserted.
(e) in sub-rule (5), for the figures "2011", the figures "2012" shall be substituted.
3. In the said rules, in Appendix-II, for "Forms SAHAJ (ITR-1), ITR-2, ITR-3, SUGAM (ITR-4S), ITR-4 and ITR-V, the "Forms SAHAJ (ITR-1), ITR-2, ITR-3, SUGAM (ITR-4S), ITR-4 and ITR-V" shall be substituted.

2 comments:

CA Venugopal Gella said...

hi Manish,

how is this possible. there is no option in the assess login to upload the retutns.

Venu

Unknown said...

Hello Sir,

As per Income Tax rule , E-filling of audit report is mandatory for each & everybody? Kindly reply me in my email "oldman240354@gmail.com" as soon as possible.

Goutam Biswas

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