Earning over Rs 10 lakhs? E-filing of return must

The government has made it mandatory for individuals with income of over Rs 10 lakh (Rs 1 million) to file their tax returns for 2011-12 electronically.

"e-filing has been made compulsory for the person who is an individual or a Hindu Undivided Family, if his or its total income, or the total income in respect of which he is or it is assessable under the Act during the previous year, exceeds Rs 10 lakh (Rs 1 million) for assessment year 2012-13 onwards," the Income Tax Department said.

E-filing for such individuals was optional till 2010-11.

Income Tax Department had received a record number of 1.64 crore (Rs 16.4 million) e-returns in 2011-12 financial year.

"We have done it to encourage people to go for e-filing of returns. This makes

the entire process faster.

"However, digital signature is not mandatory for them," a finance ministry official said.

Currently 'Business Houses' with receipts of Rs 60 lakhs (Rs 6 million) and professionals with income of Rs 15 lakhs (Rs 1.5 million) are mandatorily required to e-file their return with digital signature.

As on March 31, 2012, there were 19,684,592 tax payers who had registered for e-filing.

The new tax returns forms also ask assesses to furnish details of donations made for claiming tax deductions.

Besides, the government has made it mandatory reporting of assets held by individuals abroad, including financial interest in any entity, overseas.

"Furnishing of return by such a resident would be mandatory irrespective of the fact whether the resident taxpayer has taxable income or not," Finance Minister Pranab Mukherjee had said in the Budget.