Partnership firms, individuals and Hindu Undivided Family (HUFs) subjected to mandatory tax audits will now be required to file their income-tax (IT) returns only electronically and that too under digital signature.
This regime would be applicable for assessment years 2011-12 (financial year 2010-11) and subsequent years, the Central Board of Direct Taxes (CBDT) has said.
Hitherto, such assessees had an option to file their tax returns either electronically under digital signature or transmit the data electronically and also physically file a supplementary return. Now this option has been done away with and all tax returns of such assessees would have to be filed electronically under digital signature.
Currently, partnership firms, HUFs, individuals with turnover of Rs 60 lakh and above in a financial year are subject to mandatory tax audit by a chartered accountant. Similarly, professionals with gross receipts of over Rs 15 lakh have to come under the tax audit net.
“The latest CBDT move is a welcome move. It will reduce the misuse of CA names and their membership numbers by non-chartered accountants”, Mr G. Ramaswamy, President, Institute of Chartered Accountants of India (ICAI), told Business Line .
He also felt that CBDT must take strict measures such as levy of penalty (under Section 271B) for non-obtaining of tax audit reports from chartered accountants.
Mr Aseem Chawla, Partner, Amarchand & Mangaldas, pointed out that the latest CBDT move would bring it in line with the prescription already made for corporates. Currently, all companies have to file their income-tax returns electronically under digital signature.