The government in a recent notification has finally made it mandatory for taxpayers having annual income above Rs. 5 lakh to file their income tax returns electronically. Previously the limit was Rs. 10 lakh. The step has been taken by the government to move towards technology and to minimise the interface between the Assessing Officer (AO) and the assessee.
The reason told by the government official is that already about 80% of the assessee who are not mandated are e-fling their returns and to make the remaining assessee move towards e-filing, this step has been taken.
Sections 139C and 139D of the Income Tax Act contain provisions for facilitating filing of return of income in an electronic form by certain classes of income-tax assessees.
Example- A having gross total income of Rs. 600000 and after claiming deduction U/s 80C and 80CCF of Rs. 120000 his taxable income remains Rs. 480000. In this situation he is not required to electronically file his return.
Beside this the Finance Ministry is also making provisions for e-filing of Wealth Tax returns. To introduce such provisions it is proposed to insert new sections 14A and 14B in the Wealth-Tax Act on similar lines. As per the Memorandum to Finance Bill 2013 said such amendments will take affect from June 1, 2013.
Electronic filing of income tax return is an easy task and and also it is not mandatory to use DSC(digital signature certificate). Hence after filing the return (without digital signature) you can send the ITR-V to CPC-Bangalore within 180 days of e-filing but if you file your return using digital signature than no need to send anything to CPC-Bangalore.