The Central Board of Direct Taxes has amended certain provisions of the Income-tax Rules concerning filing of the Income-tax Return. The Income-tax (3rd Amendment) Rules, 2013 which have been issued vide Notification No. 34/2013 dated 1.5.2013 provides for amendments in Rule 12 of Income-tax Rules, 1962 and also through these rules certain Income-tax Return Forms have been substituted.
The following are some of the important amendments which have been made in the Income-tax Rules with reference to filing of Income-tax Return for the Assessment Year 2013-2014:-
ITR-1 (SAHAJ)
Upto the Asstt. Year 2012-13, the Income-tax Return ITR-1 (SAHAJ) was for all individuals having salary income, income from house property and also income from other sources except from lottery or from horse races. However, w.e.f. 1-4-2013 relevant to the Asstt. Year 2013-14 it cannot be filed by:
- A person having loss under the head income from other sources.
- A person who is resident, other than not ordinarily resident in India specially if such person has assets (including financial interest in any entity) located outside India or such person has signing authority in any account located outside India.
- A person claiming double taxation relief under sections 90 or 90A or 91 of the Income-tax Act, 1961
- A person having income not chargeable to tax exceeding Rs. 5,000/- e.g. exempt income like dividend, interest income or income from Mutual Fund or income from Tax Free Bond exceeding the sum of Rs. 5,000/-.
ITR-3 & ITR-4
The most important amendment with reference to filing Income-tax Return is with reference to a new “Schedule AL” which is introduced in ITR 3 & ITR 4. This schedule contains details of Assets & liabilities of an individual or HUF. This schedule is to be filled up when the income of the individual or HUF exceeds Rs. 25 lakhs.
ITR-4S (SUGAM)
Upto the Asstt. Year 2012-13, the Income-tax Return ITR-4S (SUGAM) was provided for filing Income-tax Return by the persons who were taking advantage of computing their income in terms of section 44AD or section 44AE of the Income-tax Act for computation of their business income based on a percentage of the profit (only when the turnover of the business is less than Rs. 1 crore).
However, w.e.f. 1-4-2013 relevant to the Asstt. Year 2013-14 it cannot be filed by:
- A person who is a resident, other than not ordinary resident in India and has any assets (including financial interest in any entity) located outside India or has a signing authority in any account located outside India.
- A person claiming Double Taxation Relief.
- A person having income not chargeable to tax exceeding Rs. 5,000/- e.g. exempt income like dividend, interest income or income from Mutual Fund or income from Tax Free Bond exceeding the sum of Rs. 5,000/-.
Such persons should file Income-tax Return in Form No. 4.
COMPULSORY e-FILING OF INCOME-TAX RETURN
The amendments have made e-filing of the Income-tax Return for the Assessment Year 2013-14 compulsory for not merely individuals or HUFs but for all persons other than companies and persons filing ITR-7 (like Educational Institutions, Trusts etc.) electronically under Digital Signature or transmitting the data in the ITR electronically and thereafter submitting ITR-V if their income exceeds Rs. 5 lakhs.
However, the charitable trusts and educational institutions etc. which are required to file their ITR-7 will not be compulsorily required to file the Return electronically irrespective of their income.
All those tax payers who are claiming relief of tax in terms of sections 90 or 90A or 91 of the Income-tax Act and are filing their Income-tax Return for the AY 2013-14 and subsequent years will now be required to furnish their Income-tax Return electronically under Digital Signature or transmitting the data in the Return electronically and thereafter submitting the verification of the Return in Form ITR V.
The impact of this new amendment will be with reference to all such persons who are taking benefit of relief in respect of income-tax paid or deducted in foreign country or specified territories. This means all those tax payers who are taking advantage of Double Taxation Avoidance Agreements (DTAA) or any other agreements which have been executed by the Central Government with specified associations for double taxation relief as well as persons who are taking advantage of Double Taxation Relief with countries where there is no agreement, all such persons will now be required to file their Income-tax Return electronically under Digital Signature and they can also submit the Return electronically and thereafter submit the verification of the Return in Form ITR V.
The new amendments provides that where the assessee is required to furnish an Audit Report as per section 115AB or 92E or 115JB of the Income-tax Act, 1961, then such audit report shall be furnished electronically with the Income-tax Return.
