Relaxing the Levy on E-forms

India's Ministry of Corporate Affairs (MCA) has lowered the additional charges for submitting Forms AOC-4, AOC-4 CFS, AOC-4 Non-XBRL, and MGT-7/MGT -7A electronically or on paper. How does this affect you? Read this article to learn more!

The Relaxation on Levy on E-forms in India is a ruling by the Indian government that exempts electronic forms from the need to submit them in hard copy. The ruling was put into effect in April 2017 and applies to all forms, including those required for tax purposes, licenses, and certification.

Why Are MCA Allowing This Relaxation to Take Place in India

The MCA relaxed the levy on electronic forms from ₹25 per form to ₹5 per form effective 1st April, 2017. Electronic filing of returns and documents became mandatory for all taxpayers in India from 1st April, 2017. This relaxation was necessitated due to the high demand for electronic forms.

This relaxation is expected to promote e-filing and make it more user-friendly. It is also hoped that this will reduce the time taken to process returns and documents, as well as cut down on errors. The government has also announced that it will provide Free Software to help taxpayers file their returns electronically.

The MCA’s decision to relax the levy on electronic forms is a welcome move, and is likely to improve the efficiency of tax administration in India.

Limitations of This Relaxation in India

The Indian government has announced that it is relaxing the levy on electronic forms, which should make them more accessible for businesses and customers. However, there are some limitations to this relaxation. First, the levy will only apply to forms that are submitted online or through a digital platform. Second, the government has said that it will continue to charge a fee for paper forms.

Recommendations for Future Use of E-forms in India

The e-forms initiative has been a boon to the government in terms of reducing processing time and costs. However, with the advent of new technologies, there are a number of ways in which the e-forms initiative can be further optimized. Here are some recommendations: 

  1. Use of digital signatures for e-signing – This allows for verification of electronic signatures, enhancing the security of the system
  2. Use of web mapping tools to identify and track processed forms – This will help identify areas where forms need to be updated or processed further
  3. Creation of an online portal for users to find and download forms – This will make it easy for users to access forms needed for their transactions
  4. Automated data capture from government agencies – This will help automate data entry processes and reduce processing time.

What Effect Has the Relaxation on Levy of Additional Fees in Filing E-forms in India?

The Relaxation of Levy on Additional Fees for Filing E-Forms in India has led to more people filing their forms online. This relaxation was implemented in order to make the filing process easier and reduce the number of visits that are made to the offices. The additional fees were levy on forms filed online as well as offline. This Relaxation has lead to a rise in the number of people filing their taxes through e-forms. Overall, this relaxation has been a success in making the tax filing process easier for people.

What Are the Exact Changes in the Filing of These Forms in India?

Those who have e-filed their returns in the past will find that the filing process has changed slightly with the advent of the new year. Here are some of the key changes: 

  1. The Form 28A has been replaced by the Form 36A. This form is specifically for electronically filed returns
  2. There is a new fee structure for electronic filing of returns. The fees for electronic filing of returns are as follows: For taxpayers who have an income of up to ₹2,50,000, there is no fee charged; for taxpayers with an income between ₹2,50,000 and ₹5,00,000, there is a fee of ₹100/- per return; and for taxpayers with an income above ₹5,00,000 there is a fee of ₹500/- per return
  3. There are new provisions for linking Aadhaar numbers with electronic returns. If a taxpayer has an Aadhaar number, then there is no need to submit any other proof such as documentary proof of identity or address etc. 

Form MGT-7 Due Date in India

With the recent passage of the GST Registration Process online filing of taxes has become easier than ever. But there are still a few things you need to know if you plan to file your taxes online in India.

For starters, the MGT-7 due date for filing your taxes online in India has changed. Previously, the due date was  31 January. However, starting this year, the due date is 31 July. If you’re not required to file your taxes online, there’s no need to worry. You can still file your taxes by mail or in person. Just be sure to submit your tax forms by the MGT-7 due date specified by law.


If you fail to file form MGT within MGT-7 due date, you may face penalties from the government. These penalties can include a fine of up to ₹1 lakh (US$15,000), imprisonment for up to three years, or both. Filing your taxes online in India is now easier than ever thanks to the GST Bill. Make sure you understand the new MGT-7 due date and filing guidelines with Vakilsearch before you start filing your taxes.  You can always talk to our experts to resolve all your doubts on the same.

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