CBDT mandates e-filing of certain forms, returns, statements – Check details

With the objective of digitalization and e-Governance, the Central Board of Direct Taxes (‘CBDT’) had on 16 July 2022 notified certain forms, returns and statements to be furnished electronically and to be verified in the manner prescribed in the Rules. With this new move, it would be easier for taxpayers to file forms with the tax authorities in the paperless mode and avoid the hassle of filing the forms physically.

Among those notified Forms, there are some which are typically applicable to an individual. Here is the brief summary of those Forms:

1. Form 10F:

This Form is applicable for a taxpayer who claims relief under the Double Tax Avoidance Agreement (‘DTAA’) and is required to obtain a Tax Residency Certificate (TRC) from the relevant overseas country. The TRC obtained from tax authorities of the overseas country does typically contain most of the information as required in the Rules. However, in case the TRC does not provide the relevant information, Form 10F is furnished by the taxpayer for the remaining information.

As per the erstwhile provision of the Act, the said Form was signed and submitted physically by the taxpayer to Indian tax authorities. It will now be required to be furnished electronically in order to claim treaty benefits under the relevant DTAA.

2. Form 10IA:

Section 80U offers tax benefits if an individual suffers a disability, while section 80DD offers tax benefits if an individual taxpayer has incurred expenditure for maintaining a dependent family member(s) suffering from disability. The quantum of claiming deduction has been provided in the relevant sections of the Act. For claiming the deduction, no document is required nor is there any requirement to produce bills for the cost incurred on treatment, apart from the certificate certifying the disability from a recognized medical authority in Form 10IA.

It will now be required to submit Form 10IA along with duly signed certificate received from a medical authority electronically before filing of income tax returns for the relevant financial year.

3. Form 28A:

As per the relevant provisions of the Act, every person liable to pay advance tax shall calculate the same and pay within the due dates specified. However, in certain cases tax authorities serve an order mentioning about the tax officer’s estimation of income and advance tax payable. In case the taxpayer is of the view that the advance tax payable would be less than the tax officer’s estimated calculation, then the taxpayer is required to send an intimation to the AO in Form 28A giving estimate of such reduced income and advance tax. The Form is prescribed under Rule 39 of the Income-tax Rules.

It will now be required to submit Form 28A electronically in order to intimate the AO of the reduced estimation of income and advance tax payable.

4. Form 27C:

Form 27C is a declaration Form for non-deduction of TCS by a buyer of goods. As per the income tax rule, the seller of the specified goods must collect tax from the buyer. Declaration in Form 27C can be made by the buyer, who is a resident in India, and uses the purchased goods for the manufacture, processing or production of goods/ articles. The buyer gives a declaration, in duplicate, in Form 27C. A copy of the declaration has to be given to the person collecting tax and the person collecting this declaration Form has to submit the copy to the authorities concerned on or before the seventh day of the following month.

It will now be required to submit Form 27C electronically by a resident buyer for getting exemption from collection of tax at source.

5. Form 68:

Section 270A of the Act provides penalty for misreporting of income in the income tax return and section 276C or section 276CC provides for initiation of prosecution.

Section 270AA of the Act provides for grant of immunity from the imposition of penalty and initiation of proceedings within one month from the end of the month in which the order has been received. Form 68 was earlier to be filed manually.

However, the CBDT has now notified Form 68 to be filed electronically, as the prescribed application Form u/s 270AA(2) for making application for grant of immunity.

(By Homi Mistry, Partner with Deloitte India. With inputs from Niji Arora, Senior Manager; Tarika Agarwal, Manager; and Ami Rathod, Assistant Manager with Deloitte Haskins and Sells LLP)