How to file an Electronic Audit Report?

New e-filing site launched by the Income Tax department:

The Income Tax department has begun a new e-filing website. Taxpayers can LOGIN at the website of the Department and update their profile along with address, mobile number and e-mail ID.

Tax Professionals (CA) can use this system. The Chartered Accountants (‘CA’) having the Certificate of Practice (‘COP’) can sign the tax audit report. They are required to verify many statutory Income Tax forms under the Law. They can login separate and are required to upload Income Tax audit report electronically.

Steps to be followed:

After the process of registration, you will have a link on email id provided by you. Thus you have been registered as an income tax professional. This is the first step of filing the electronic audit report.

The second step can be done either by the assessee or by a CA appointed by the assessee with the id and password of assessee.

Assessee, who is liable to file audit report under section 44AB of the Income Tax Act, is required to add the CA signing his tax. Then he has to download the forms.

Balance Sheet and accounts of Profit and Loss are required to be uploaded with the tax audit report file. Hence one has to prepare the final balance sheet and profit and loss account prior to filing the tax audit report.

Thereafter all the documents are to be uploaded on e-filing portal of the Department.

Not mandatory for some tax payers:

E-filing of Income Tax Return for the Assessment Year 20 12- 2013 is not mandatory for the agents of non-residents.

From the Assessment Year 2013-2014 when an assessee is supposed to furnish an audit report, he has to file the report electronically within the due date of filing the return of income. Further, the assessee who is liable to file the above report electronically shall be liable to file his return electronically.

New forms introduced:

The new forms such as ITR 5 and ITR 6 have been introduced for corporate taxpayers to supply their balance sheets according to the revised Schedule as given in the Companies Act, against the existing on e of the Income Tax Act currently. ITR 5 is to be used by firms and body of persons, whereas ITR-6 has to be used by companies not being exempted under Section 11 of the Income Tax Act.

ITR 7 is for the trusts and political parties.  The Income Tax Department now desires to collect more information about the tax payers. Political parties have to furnish their party registration number with the Election Commission of India.

Documents sought for:

The department directed to provide additional disclosures in balance sheets in case of payment of royalty, interest to non-resident, nature of the expenses and their amount. For calculating the total income for the column ‘income from other sources’ the taxpayers are required to specify the sources from which they have the income.