Efiling of audit reports under Income tax and ITRs if income exceeds Rs. 5 lakh now mandatory


CBDT has finaly notified new Income Tax return forms for the Assessment year 2013-14. Certain amendments have also been made to Rule 12 of Income Tax Rules which are as follows:

1. Mandatory efiling of audit reports: 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.

2. 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.

3. Mandatory e-filing of return if income exceeds Rs. 5,00,000 or assessee claims tax relief

(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.

4.   Return in ITR 1 can't be filed if assessee claims tax relief or has any income which is exempt under Chapter III more than Rs. 5000 :

 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) 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.

5. Return in ITR 1 can't be filed if assessee incurs losses under the head 'Income from other sources:

ITR 1 can be filed by 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.


Relevant Notification is as follows: 
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.


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