High-income individuals, HUFs also under mandatory digital return regime

by S. MURLIDHARAN

  

Vide notification 14 of 2012 dated March 28 2012, the CBDT has brought new categories of taxpayers under the mandatory digital return regime.

For the upcoming assessment year 2012-13 and later, individuals and Hindu Undivided Families (HUFs) having total income in excess of Rs 10 lakh will have to compulsorily file income-tax return electronically.

The Budget 2012-13 had proposed mandatory filing of income tax return by resident individuals and HUFs having assets abroad including financial interest in any entity abroad or whose signing authorities in respect of foreign bank accounts were residing abroad even if they did not have any taxable income during the relevant previous year.

The notification, taking forward the object of the Budget move, mandates that these persons too come under the mandatory digital return regime. Digital returns lend themselves to special and pointed scrutiny.