Fintotal News Analysis | Online Tax Return Filing Mandatory for Income over Rs 5 Lakhs
Online Tax Return Filing Mandatory for Income over Rs 5 Lakhs
Ruby Jacob, 01 Jul 2013

Income tax rules for filing of returns in 2013-14 were tweaked by CBDT to bring a number of changes. The most significant of them for salaried individuals is that now it is mandatory for those with total taxable income exceeding Rs 5 lakhs to file tax returns online. Read on for details on this and other changes affecting tax filing in this assessment year.

i) For those whose income exceeds Rs 5 lakhs a year, tax returns will have to be filed electronically

Threshold income for e-filing was Rs 10 lakhs last, from 2013 it is Rs 5 lakhs. E-filing makes processing of returns and settling of faster. Here the interface between you and your assessing officer is reduced.

If you are filing returns electronically you can put a digital signature and submit it online or you can upload the xml file, print the acknowledgement ITR-V, sign it and post it to CPC, Bengaluru. Wealth tax returns will also have to be filed electronically.

ii) ITR 2 for salaried individuals with loss from other income sources or exemptions over Rs 5,000 

Until last year if your income sources were limited to salary, one house and 'other sources' which include dividends, interest, gifts (but exclude lottery winning or race horse) you could file ITR 1 SAHAJ. But from this assessment year, if you have had loss from house or 'other sources' you cannot file ITR-1 SAHAJ. ITR-2 will have to be filed in this case.

Similarly if the value of exemptions on your income is more than Rs 5,000 you cannot file ITR-1 SAHAJ. ITR-2 is to be filed. For instance, if your HRA tax exemption is over Rs 5,000 you should file returns in ITR-2. These two leave SAHAJ form applicable for a minimum number of salaried assessees.

Those who are claiming tax relief for double taxation under sections 90, 90A or 91 are also not eligible for filing return in ITR-1. They will have to file in ITR-2 this year onward.

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