New Delhi: The government exempted non-residents and private discretionary trusts from mandatory filing of income tax returns electronically.

"It has been brought to the notice of the Department that the agents of non-residents are facing difficulties in electronically furnishing the returns of non-residents," an official statement said.

This is because there may be more than one agent of the non-resident in India for different transactions, it said, adding, such situations are not covered by the existing e-filing software which functions on the principle of one assessee-one PAN-one return.

Accordingly, it has been decided that it will not be mandatory for agents of non-residents if his or its total income exceeds 10 lakh to electronically furnish the return of income of non-residents for assessment year 2012-13, the statement added.

With regard to private trust, it said that such entities are facing problems in filing their return of income electronically in cases where they are filing their return in the status of an individual. This is because status of a private discretionary trust has been held in law as that of an 'individual', it said.

The existing e-filing software does not accept the return of a private discretionary trust in the status of an 'individual', it said, adding, e-filing of tax return in such case is not compulsory.