Govt removes exemptions for ITR filing

Govt removes exemptions for ITR filing

In a move to crack down on shell companies, the government has proposed to remove exemption available to firms with tax liability of up to Rs 3,000 from filing incometax (IT) returns from the next fiscal year.The Union Budget 201819 has rationalised the ITAct provision relating to prosecution for failure to furnish the returns.

Thus,amanaging director oradirector incharge of the company duringaparticular financial year could be liable for prosecution in case of any lapse in ITreturn filings for any financial year beginning April 1. “The incometax departments would now track investments by these companies.

Also, the focus will be on those firms that show less profit and also those who file ITreturns for the first time,”afinance ministry official said.There are about 1.2 million active companies in the country, out of which about 700,000 are filing their returns, including annual audited report, with the ministry of corporate affairs. Of this, about 300,000 companies show ´nil´ income.

The Business Standard, New Delhi, 13th February 2018

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