The Central Board of Direct Taxes (CBDT) is Spreading e-tax net through Notification dated 34/2013 dated 01.05.2013. E-filing of I-T returns is now mandatory for individuals, including salaried taxpayers, earning more than Rs 5 lakh taxable income during the financial year ended March 31, 2013. Earlier the same was mandatory for the Individuals having salaried Income more than 10 Lakhs.

CBDT’s earlier notification that salaried Individual having Income less than 5 Lakhs need not to file Income tax returns continues to be in force. Therefore salaried Individual earning less than Rs 5 lakh and whose saving bank interest income is less than Rs 10,000 in a year will need not to file Income Tax returns. However, if an employee has switched jobs during the financial year, then this leeway of tax filing exemption is not available. Since there is a condition to get the exemption that the employer has discharged the entire tax liability through deduction of tax at source and deposited it with the government & there is very chance that either of the employers will not discharge entire tax liability due to lower tax calculations at their end.

After the above said new notification comes into force income tax return filing is mandatory for three types of individuals having salaried income:

i)                   Individuals having salaried income over 5 lacs

ii)                 Individuals having salaried income over 5 lacs & switch over their job during the financial year.

iii)              Individuals having salaried income less than 5 lacs & switch over their job during the financial year.

iv)               Employees having income less than over 5 lacs but having other incomes and/or having interest income over 10000.

For the first two categories of employees e-return filing is mandatory. For the other category of individuals e filing is mandatory if their total income exceeds Rs. 5 lacs. Simultaneously e-filing of I-T returns also helps speed up the process of granting refunds to taxpayers – the processing is carried out at the CPC-Bangalore.

After making the income tax return mandatory for the individuals having total income over 10 lacs, IT department needs to extend the time limit for return filing of individuals from 31st July to 31st august (for 1 Month) due to non availability of access of website of the tax department which enables e-filing of returns. As per IT department there is about 18 lacs of individuals who file return between 5 lakhs to 10 lakhs which gather more traffic in the e-return filing website in this AY. It’s a good step by the IT department to gear up the Income tax return processing but a question that how the department’s website handles such huge traffic especially during the peak return filing season.

Through the same notification, the CBDT has also introduced e-filing of tax audit reports, transfer pricing (TP) reports and Minimum Alternate Tax (MAT) certificates. Earlier, while e-filing of I-T returns was mandatory for India Inc, these reports had to be physically filed at the local tax offices.

By: CA Prasenjit Paul

Author can be reached at paul_prasenjit@yahoo.co.in

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0 responses to “E-Filing of IT Return mandatory for Individuals having Total Income of more than Rs.5 Lakhs”

  1. R. MALHOTRA says:

    I am aged 52 yrs and have only interest income around 2 lakh per annum. For this income TDS is deducted by the deductor. Am I required to file a return for the current financial year ?

  2. Pardeep Chanana says:

    Where it is written that if salary income during A Y 2013-14 does not exceed Rs. 5 laks, return filling is not mandatory for A Y 2013-14

  3. Mansukh H.Rachani says:

    My pension income is about Rs. 183000/- and interest earning is Rs.112000/-. I have deposited Rs. 60000/- in PPF Is it necessary to file return?

  4. dinesh kumar gumber says:

    1while going to file ereturn ”invalied server certificate” message is displayed.
    I am having windows xp and office 2003 application.

    kindly help

    ITR 1 SAHAJ FORM DOWNLOADED FROM YOUR SITE IS HAVING SOME ISSUES REGARDING COMPILE ERROR IN HIDDEN MODULE
    IS THERE ANY PASSWORD TO UNPROTECT THE SHEET IF SO, KINDLY RPOVIDE THE SAME.

    THANKS AND REGARDS.
    DINESH GUMBER

  5. Banwari Pareek says:

    what is the proceed for Change Income Tax Location ( my address is For Tezpur assam But from Last 3 Years i am transfred my business in Bikaner(Rajasthan ) So what will i do for the same ?? in income tax ???

  6. CA Prasenjit says:

    No DS is not required.

  7. sudheer says:

    is digital signature is mandatory for e filing of returns

  8. Sivaram says:

    Dear Sir,

    Is this 5 lakh is total income or taxable income. In other words is the amount after deducting 80c or before. Kindly confirm.

    • CA.PRAVINKUMAR.A says:

      The monetary limit of Rs.5 Lakhs is on total income only. i.e., after deductions and before aggregating the agricultural income.

  9. CA.PRAVINKUMAR.A says:

    Mr.Nilesh,

    Except the first two cases which mandates e-filing, the 3rd and 4th are relatively simple. If your total income exceeds Rs.5 Lakhs, you are required to file electronically.

    For e.g., Salary income 4,20,000/-, House Property income – Rs.60,000/- and Other sources – Rs.50,000/-, 80C deduction – Rs.40,000/- results in Total income of Rs.4,90,000/-. Hence, e-filing is not mandated. If 80C is Rs.20,000/- resulting in Total income of Rs.5,10,000/-, then e-filing is mandatory.

  10. CA.PRAVINKUMAR.A says:

    Mr.Rahul,

    E-filing is mandatory for you if your taxable income exceeds Rs.5 Lakhs per annum for the year ended 31.03.2013.

  11. CA.PRAVINKUMAR.A says:

    The online version of ITR are not yet released (Except ITR1 & ITR4S). What are the remedies available for assessees who are required to pay tax along with interest u/s.234B. Even if assessee pays the entire tax along with interest before the end of May 2013, he will not be able to file the income-tax return, if his income exceeds Rs.5.00 Lakhs, resulting in payment of additional interest for the month of June, 2013 (Presuming the Department will release the forms in June, 2013.

  12. Rahul says:

    I am an HR professional with sole proprietorship consulting business. Is e-filing mandatory for me tooif my Income is less than 10 LPA ?

  13. Nilesh says:

    please provide clarifications regarding 4th point regarding other sources of income

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