Amending the rules relating to electronic filing of Income Tax (I-T) returns, the Central Board of Direct Taxes (CBDT) has made digital signature mandatory for all companies while filing returns.
Any individual professional such as doctor, chartered accountant, architect or consultants with turnover or gross receipts exceeding Rs 10 lakh has to get accounts audited under the law. The limit will become Rs 15 lakh from 2011-12.
Similarly, if the turnover or gross receipts of any business exceeds Rs 40 lakh (Rs 60 lakh from assessment year 2011-12 onwards), its accounts need to be audited.
"The CBDT has made e-filing compulsory and digital signature in case of companies, to have an easy and cost-effective data management, minimise fraudulent practices and have an environment-friendly paperless system," Shishir Jha, commissioner, CBDT told HT.
The notification also means that all individuals and Hindu Undivided Families (HUFs) that are required to get their accounts audited under section 44AB of the Income-Tax Act 1961, now need to file their I-T return in Form No ITR-4 electronically, with or without digital signature.
The new system is effective July 9. Any paper returns filed after July 12 in the above cases would be treated 'invalid'.