From the assessment year 2013-14 onwards, e-filing has been made compulsory for individuals and HUF having total income above Rs 5,00,000 .In the previous year the mandatory limit for e-filing was Rs 10,00000.Most of the tax payers falls between thes 5 to 10 lac group.
Reports shows that tax payers finds comfort in filing returns online rather than manual processing of filing returns. There is hike in number of e-returns filed with income tax department.So inorder to boost tax collection and to ensure better compiance,threshold limit has been reduced to 5,00,000 . e-filing is an easy, fast and secure method of filing of income tax return. E-filing also facilitates faster refunds, if any.
e-filing can also made without digital signature and they have to submit ITR Form-V for verification to central processing centre(CPC) Bangalore.
E filing is mandatory for the following cases
- An Individual or HUF whose total income in the previous year exceeds Rs. 5,00,000.
- An Individual or HUF being a resident, having assets (including financial interest in any entity) located outside India or signing authority in any account located outside India and required to furnish the return in Form ITR-2 or ITR-3 or ITR-4.
- A person claiming any relief of tax under section 90 or 90A or deduction of tax under section 91 of the Act