To facilitate electronic filing, Central Board of Direct Taxes (CBDT) has issued a notification, making it mandatory for Firm or individual/HUF covered under section 44AB to file their Income Tax (IT) returns (ITR-5 or ITR-4) electronically using legally valid digital signature certificates. (LRA) DSC is a licensed Certifying Authority, authorized by the Controller of Certifying Authorities, Government of India, under the IT Act 2000, to issue valid Digital Signature Certificate for e-Filing under Income Tax Department (ITD) initiative.

Electronic Filing of Returns of Tax Deduction at Source
As per the income tax laws, entities (both corporates and non-corporates - deductors) making payments to third parties (deductees) are required to deduct tax at source (Tax Deducted at Source -TDS) from these payments and deposit the same at any of the designated branches of authorised banks. They should also furnish TDS returns containing details of deductee(s) and bank where TDS amount is deposited with the Income Tax Department (ITD). ITD has made it mandatory (w.e.f. June 1, 2003) for corporate deductors to furnish their TDS returns in electronic form (e-TDS return). Non-corporate deductors can furnish their returns in physical form with their respective Income Tax offices. They can also furnish their returns in electronic form through TIN facilitation centres established by NSDL. ITD has notified an "Electronic Filing of Returns of Tax Deducted at Source Scheme, 2003" . It is applicable to all deductors furnishing their TDS return in electronic form. Deductors furnishing their TDS return in electronic form (e-TDS return) shall furnish the same to TIN facilitation centres established by NSDL.

E-Return Intermediaries
The Income Tax Department launched the Electronic Furnishing of Return of Income Scheme in 2004. Under this scheme, returns of income can be filed electronically through persons authorised to act as e-return intermediaries. The intermediaries will digitize the data of such returns and transmit the same electronically to the e-filing server.

Electronic Filing of Tax Returns by Individuals
The Income Tax Department launched the 'Furnishing of return of income on Internet Scheme' in 2004. Under this Scheme, returns of income can be filed electronically on the Internet by an individual who has been allotted a Permanent Account Number and who has income under the head 'Salaries' but does not have any income under the head 'Profit and Gains of Business or Profession'.

What is required?
In order to file your Tax and/or TDS returns online, you will need to procure a Digital Certificate. As per ITD's requirements, (LRA) DSC issues two types of certificates for tax purposes: Class-3 and Class-2.

Class-3 and Class-2 certificates are issued by Registration Authorities (RAs) and Subordinate Certifying Authorities (Sub-CAs) that are members of the (LRA) DSC Trust Network. Depending on your requirements, you may enroll for either a Class-3 or a Class-2 certificate.

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