Now that the financial year 2009-10
has ended, the audit of books of
account would be in progress. Once
the audit is concluded, work would
start on preparation and filing of
return of income.
For FY 2008-09, the income-tax
return of companies was
compulsorily required to be filed
electronically. Company assessees
had the following courses of action
available to them:
- File the return electronically with
digital signature, or
- File the return electronically
without digital signature and
thereafter physically send a
signed acknowledgement of the
return of income to the Central
Processing Centre of the Incometax
Department at Bangalore.
Also, Individuals and HUFs who were
required to get their accounts
audited under the Income-tax Act,
1961 (Tax Audit) could file their
income-tax returns in physical form
or electronically. There was no
compulsion either way.
The Finance Minister in his Budgetspeech for the year 2010 had
emphasized onincreased
computerisation of tax compliances
and reducing the physical interface
between tax payers and tax
administration.
In line with this intention, the
Central Board of Direct Taxes has
recently issued Notification No.
49/2010 which requires all company
assessees to mandatorily file their
income-tax returns electronically
with digital signature. The option of
filing the return of income without
digital signature and thereafter
sending the signed copy of the
acknowledgement to the Central
Processing Centre of the Income-tax
Department at Bangalore is no
longer available for company
assessees.
In respect of Individuals and HUFs
who are liable to tax audit, the
return of income is now
compulsorily required to be filed
electronically, with or without Digital
Signature.
All these changes are effective from
AY 2010-11 i.e. they will apply to the
returns that are to be filed for the financial year ended 31st March, 2010 onwards.
Care to be taken by Companies:
Companies need to ensure that the digital
signature of the person who would sign the return
of income is readily available.
Where the signatory to the return of income
already has a digital signature, it should be
ensured that the same is in operation. The date of
expiry of the digital signature should be verified
and necessary renewals should be made in time.
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