For electronically filing of IT return of Firms and Individuals/HUFs covered under section 44AB Digital Signatures required.

The firms, Individuals or HUFs who are carrying any Business (Turnover or receipts exceeds Rs.60 lacs) or profession (Gross receipts exceeds Rs.15 Lacs) and their accounts are required to be audited (will have to mandatorily take the digital signatures and file theirIncome Tax returns using them.Rule 12 of Income Tax Rule has been amended by CBDT vide notification no 37/2011 [F. NO. 149/68/2011-SO (TPL)], DATED 1-7-2011 by which a partnership firm or an Individual or HUF which carries on business and on which tax audit u/s 44AB is applicable , shall have to mandatorily file income tax return for Asst Year 2011-12 online only. Till now , it was their option to file either electronically or manually. The said notification is as under

NOTIFICATION NO. 37/2011 [F. NO. 149/68/2011-SO (TPL)], DATED 1-7-2011

In exercise of the powers conferred by section 295, read with section 139 of the Income-tax Act, 1961 (43 of 1961), the Central Board of Direct Taxes hereby makes the following rules further to amend the Income-tax Rules, 1962, namely :—

1. (1) These rules may be called the Income-tax (Sixth Amendment) Rules, 2011.

(2) They shall come into force from the date of its publication in the Official Gazette.

2. In the Income-tax Rules, 1962 in rule 12, in sub-rule (3), in the proviso, for clauses (a) and (aa) the following clause shall be substituted, namely :—

“(a)  a firm required to furnish the return in Form ITR-5 or an individual or Hindu Undivided Family (HUF) required to furnish the return in Form ITR-4 and to whom provisions of section 44AB are applicable, shall furnish the return for assessment year 2011-12 and subsequent assessment years in the manner specified in clause (ii);”

For ready reference, relevant portion Rule 12(3) upto 30/07/2011 is as under :

(3) The return of income  referred to in sub-rule (1) may be furnished in any of the following manners, namely:—

(i) furnishing the return in a paper form;

(ii) furnishing the return electronically under digital signature;

(iii) transmitting the data in the return electronically and thereafter submitting the verification of the return in Form ITR-V;

(iv) furnishing a bar-coded return in a paper form:

Provided that—

(a) a firm required to furnish the return in Form ITR-5 and to whom provisions of section 44AB are applicable shall furnish the return in the manner specified in clause (ii) or clause (iii);

(aa) an individual or HUF required to furnish the return in Form ITR-4 and to whom provisions of section 44AB are applicable shall furnish the return for assessment year 2010-11 and subsequent assessment years in the manner specified in clause (ii) or clause (iii);

(ab) ……..

(b) ………..

By this notifcation, option no (iii) has been withdrawn.