The Finance Ministry on Monday made it mandatory for all companies to file income tax returns electronically with digital signatures, a move that will facilitate faster filing of I-T returns by India Inc.
However, digital signatures will not be mandatory for individuals and Hindu undivided families (HUFs) whose business income exceeds Rs 40 lakh or professional income is over Rs 10 lakh annually, and are mandatorily required to file returns electronically.
"It is now mandatory for all companies to file income tax returns electronically in with digital signatures," an official statement said.
Digital signature or electronic signature does not require physical verification of the signatory. Earlier, companies were allowed to file their electronic returns with or without digital signatures.
As regards individuals and HUFs, the statement said, "(those) who are required to get their accounts audited under Section 44 AB of the Income Tax Act 1961, are also required to file their income tax returns electronically with or without digital signatures."
Under the Income Tax Act, the individuals and HUFs are required to get their accounts audited if the turnover or gross receipts from business exceeds Rs 40 lakh (Rs 60 lakh from assessment year 2011-12) or receipts from the profession exceeds Rs 10 lakh (Rs 15 lakh from assessment year 2011-12).
The government had introduced the system for mandatory e-filing of income tax returns by corporates from assessment year 2006-07. The due date for submitting income tax returns for assessment year 2010-11 is July 31, 2010.
