Thursday, April 3, 2014

Mandatory e-filing for firms, political parties and trusts giving notice of accumulation of income

The CBDT amended Rule 12 with Income-tax (Fourth Amendment) Rules, 2014, which brings following assessee within the net of mandatory e-filing of return or notice, as the case may be:
1)   Partnership firms: Earlier e-filing of return was mandatory only for those firms who were liable to get their accounts audited. In view of this amendment, every firm is now required to e-file the return even when they are not liable for tax audit for Assessment Year 2014-15.
2)   Political parties: Earlier political parties were given an option to file e-returns. Now every political party (it its income exceeds the maximum amount not chargeable to tax) is under an obligation to file e-return.
3)   Specified Trust: As per section 11(2) every trust can accumulate its income for application in subsequent years if its total income wasn’t applied or was not deemed to have been applied for charitable purposes in India during the previous year. Such trusts are required to give notice to the Assessing officer in prescribed format regarding accumulation of income. These trusts are now are required to file such notice in electronic mode.

NOTIFICATION NO.24/2014 [F.NO.142/2/2014-TPL]/SO 997(E), DATED 1-4-2014