E-Filing of Income Tax Returns

Introduction

July is a busy month for individuals as it is the last month for filing income tax returns. 31^st July is the last date for filing of income returns and it is fast approaching. And hence the last minute rush to file income tax returns. The traditional way of filing income tax returns is by submitting a physical copy of the duly filled ITR-1 (Income Tax Return) Form to the income tax office directly or through a Tax Consultant or Chartered Accountant. Since the last 2-3 years one new method of filing income tax returns that is fast catching up with the traditional ways is E-Filing of income tax returns. So let us have a closer look at this method of filing income tax returns.

What is E-Filing?

E-Filing of income tax return is the process of electronically filing IT returns through the internet. You can file your returns at anytime and from anywhere. You don’t need to approach a tax consultant nor a CA nor do you need to stand in long queues in the Income Tax Office to file your returns.

Methods of E-Filing of Income Tax Returns

There are 3 ways in which you can do E-Filing of income tax returns

• E-Filing of income tax returns using a digital signature. In this case you don’t need to submit the physical copy of ITR-V (Verification) form. This can be done directly through the Government income tax website which is www.incometaxindiaefiling.gov.in
• E-Filing of income tax returns without a digital signature. This again can be done through the Government income tax website. In this case after the filing of returns electronically, the individual needs to take a printout of the ITR-V form (Verification) and sign it and send it to the Income Tax Office.
• E-Filing of income tax returns through an intermediary like Taxsmile or TaxSpanner etc. The intermediaries help in e-filing with digital signature as well as e-filing without digital signature.

Step-by-step E-Filing of Returns

• The individual first needs to visit the website www.incometaxindiaefiling.gov.in or the intermediary website like www.taxsmile.com
• The user needs to register on the website if he is doing E-Filing for the 1^st time. Else if the user is already registered, then he needs to login into his account.
• The user needs to download the excel file (Utility File) for filing in all his income tax returns details.
• After filling in all the details in the excel file and validating it, the user needs to generate the XML file.
• After generating the XML file, it needs to be uploaded on the website.
• Now if the user has a digital signature then he can upload the XML file and take the printout of the acknowledgement. This completes the process of e-filing.
• If the user does not have a digital signature then he needs to upload the XML file. The Income Tax Department sends the ITR-V (Verification) form which acts as a provisional acknowledgement. The user needs to take a print out the ITR-V Form and sign it and send it to the Bangalore office of the Income Tax Office. Once the Income Tax Office receives the ITR-V form, they send an acknowledgement. The user needs to take a print out of this acknowledgement and that completes the process of e-filing of income tax returns.

Things to be Remembered

• The user needs to send the ITR-V form printout to the following address – Income Tax Department – CPC, Post Bag No – 1, Electronic City Post Office, Bangalore – 560 100, Karnataka.
• The ITR-V form needs to be sent within 120 days of e-filing of returns else the filing of returns will be considered as null and void. In that case the user will have to go through the entire e-filing process again.
• The ITR-V form has to be sent only by normal post. Any forms sent by courier are not considered by the IT Department.

Conclusion

With the option of e-filing available, now an individual does not need to depend on Tax Consultants nor on CA nor does he need to spend time waiting in long queues outside the income tax office. While e-filing of income tax returns is free through the government website; intermediaries like taxsmile or taxspanner may charge a nominal fee for the same. E-Filing has definitely simplified the process of filing of income tax returns. An individual can file returns at anytime and from anywhere through the internet. It’s really very convenient as has been my experience since the last 2 years. So have you tried e-filing of income tax returns? If not, try it this year. So happy e-filing of income tax returns.