Digital Signatures required for electronically filing of IT return for Firms and Individuals/HUFs covered under section 44AB

The firms, Individuals or HUFs who are carrying any Business (Turnover or receipts exceeds Rs.60 lacs) or profession (Gross receipts exceeds Rs.15 Lacs) and their accounts are required to be audited (will have to mandatorily take the digital signatures and file their Income Tax returns using them.Rule 12 of Income Tax Rule has been amended by CBDT vide notification no 37/2011 [F. NO. 149/68/2011-SO (TPL)], DATED 1-7-2011 by which a partnership firm or an Individual or HUF which carries on business and on which tax audit u/s 44AB is applicable , shall have to mandatorily file income tax return for Asst Year 2011-12 online only. 08tax1Till now , it was their option to file either electronically or manually. The said notification is as under

NOTIFICATION NO. 37/2011 [F. NO. 149/68/2011-SO (TPL)], DATED 1-7-2011

In exercise of the powers conferred by section 295, read with section 139 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 (Sixth Amendment) Rules, 2011.

(2) They shall come into force from the date of its publication in the Official Gazette.

2. In the Income-tax Rules, 1962 in rule 12, in sub-rule (3), in the proviso, for clauses (a) and (aa) the following clause shall be substituted, namely :—

“(a)  a firm required to furnish the return in Form ITR-5 or an individual or Hindu Undivided Family (HUF) required to furnish the return in Form ITR-4 and to whom provisions of section 44AB are applicable, shall furnish the return for assessment year 2011-12 and subsequent assessment years in the manner specified in clause (ii);”

For ready reference, relevant portion Rule 12(3) upto 30/07/2011 is as under :

(3) The return of income  referred to in sub-rule (1) may be furnished in any of the following manners, namely:—

(i) furnishing the return in a paper form;

(ii) furnishing the return electronically under digital signature;

(iii) transmitting the data in the return electronically and thereafter submitting the verification of the return in Form ITR-V;

(iv) furnishing a bar-coded return in a paper form:

Provided that—

(a) a firm required to furnish the return in Form ITR-5 and to whom provisions of section 44AB are applicable shall furnish the return in the manner specified in clause (ii) or clause (iii);

(aa) an individual or HUF required to furnish the return in Form ITR-4 and to whom provisions of section 44AB are applicable shall furnish the return for assessment year 2010-11 and subsequent assessment years in the manner specified in clause (ii) or clause (iii);

(ab) ……..

(b) ………..

 

By this notifcation, option no (iii) has been withdrawn.

Check Your EPF Account Balance From Today !

Another good news for the PF account holders – while they would be able to see their Provident Fund Account balance from today, the EPFO is taking steps to make the settlement of claims and transfer of funds from one account to another hassle free by introducing online application forms for the same. The EPFO…

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Double Bonanza for Senior Citizens – IDBI Federal launches Life’s Term Plan – eligible for deduction u/s 80C

Private insurer IDBI Federal, a joint venture of IDBI Bank, Federal Bank and Ageas, a multinational insurance company from Europe, has launched a Life Term Plan for senior citizens. Those who have missed the bus to get themselves insured during their young age, it’s not late.Anybody who is above the age of 50 yrs but…

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Want hassle free TDS Credit? Verify 26AS & Form 16A !

Central Board of Direct Tax is making every effort that the tax payer gets tax credit of all tax deducted at source. For this the system is in place that once the TDS return reflect tax payer’s PAN , the tds deducted and deposited as per TDS return is automatically given credit at the time…

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Have a Visa Debit Card – Can buy Mutual Funds online.

Fidelity Mutual Fund and ICICI Pru Mutual Fund has launched a facility wherein an investor can buy MFs of the two fund houses using their Visa Debit Card. All the Fund houses provide their investors with the facility of buying funds through internet banking but the idea of using Visa Debit credit has exclusively been…

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Health Insurance Portability deferred to 1st October, 2011

Those who wish to change their health insurers will have to further wait for 3 months. The IRDA, earlier in February 2011 allowed portability of Health Insurance to be effective from July 1st, 2011. However, the details have been laid down now so as to ensure smooth transition of the credit from one insurer to the other.
The insurers through a web based facility would be required to feed in the historical data of the policyholder,health-insurance-tax-benefitswhich can be accessed by the new insurance company to which the policyholders wishes to port his/her policy. This web based facility is presently being established by IRDA and the implementation of the same would not happen before October 1st, 2011 after which the health insurance policies across non – life insurers would be portable.
The same was notified by IRDA through a press release dated 24/6/11.

PORTABILITY OF HEALTH INSURANCE
PRESS RELEASE NO. : IRDA/NL/PR/HLTH/136/06/2011, DATED 24-6-2011
IRDA had earlier required that portability of health insurance policies across non-life insurance companies including stand alone health insurance companies would be introduced with effect from 1st July, 2011. The modalities of such portability to be effective and consumer friendly have been discussed with the non-life insurers in the country.
To ensure that portability is available in a smooth manner for the policyholders, it is necessary to ensure that historical data on the policyholder’s health related details of claims be available to insurers. IRDA has embarked upon providing a web based facility for the insurers to feed in all relevant details on health insurance policies issued by them to individuals which will be accessed by the new company to which a policyholder wishes to port his policy. Such a system will enable the new insurer to obtain efficiently data on history of health insurance of the policyholder wishing to port. Such a facility is necessary to enable the smooth running of the system.
The web enabled facility is being established by IRDA and the Authority will implement portability of health insurance policies across non-life insurers in the country not later than 1st October, 2011.

785 is the cost inflation index for FY 2011 – 12

The Central Government  vide notification No. 35/2011 dated 23-6-2011 has announce Cost Inflation Index for FY 2011-12 at 785. Cost inflation Index is important whenever you sell or plan to sell your long term assets and want to calculate the Long Term Capital Gain Tax Liability.This  index is then used to determine inflated cost of…

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Exemption from Filing Return to Salaried Class Just For Name Sake !

That is true , if one sees the condition under which a person getting salary below five lakhs will get exemption from filing of tax return. As per  Notification No. 36/2011, dated 23-6-2011, by which the Central Government  has exempted individuals having the total income below Rs. 5 lakhs required fulfillment of following condition in…

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View EPF Account details online from July 1 !

Good news for the 5 crore EPF Account holders in terms of both transparency and awareness as to what is the balance in their PF account. The Employees Provident Fund organization’s (EPFO’s) 120 offices across the country is updating the accounts of the subscribers. The account holder would initially be able to view the account balance of the previous Financial Year by quoting their account number on the website. However, the subscribers would be able to see the latest balance in next 3-4 months after the updating process completes.
The facility would be a great relieve to the account holders as it would let the account holders ascertain, if their contribution has been deposited by the employer .

By March, 2012, all the regional and Sub offices would be inter connected and EPFO also intend to replace the account number with the Unique Identification Number which would further facilitate the quick transfer of the funds in case an employee changes the job, and hence will make the tracking of their accounts easier.

The above information was given by Mr. Kanchan Roy (Assistant PF Commissioner) at a session at Bengal National Chamber of Commerce and industry.

When is Income from Royalties or Technical Fee of Foreign Companies Exempt?

Its exempt when Central Government exempts such income u/s 10(6C). Section 10 of the Income Tax Act, 1961 lists down the incomes that are not to be included in the total income while computing the total income of any person. Further Clause 6C gives Central Government the power to notify in the Official Gazette to…

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