NRIs, private trusts exempted from e-filing of returns; date extended for others

The Central Board of Direct Taxes (CBDT) has relaxed the requirement of e-filing of returns for representative assessees of non-residents and in the case of private discretionary trusts even if their incomes are above Rs10 lakh for the assessment year.

As per the provisions of the Income Tax Act, agents of non-residents have to electronically furnish the return of income of non-residents for assessment year 2012-13 if his or its total income exceeds Rs10 lakh.

The Act also mandates that an individual or 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 Rs10 lakh, should furnish the return electronically for the assessment year 2012-13 and subsequent assessment years.

However, since there may be more than one agent of the non-resident in India for different transactions or a person in India may be an agent of more than one non-resident, such situations are not covered by the existing e-filing software, which functions on the principle of one assessee-one PAN-one return, CBDT said in a release.

Also, in the case of 'private discretionary trusts' having total income exceeding Rs10 lakh the mandatory efiling of returns have been done away with as they are facing problems in filing their return of income electronically in cases where they are filing their return in the status of an individual. This is because the status of a private discretionary trust has been held in law as that of an 'individual'. The existing e-filing software does not accept the return of a private discretionary trust in the status of an 'individual', CBDT said.

Accordingly, the board has decided that it will not be mandatory for agents of non-residents and 'private discretionary trusts' to file e-returns for assessment year 2012-13even in cases of their total incomes exceeding Rs10 lakh.