UNDERSTANDING OF ‘E-FILING’ OF TAX RETURNS

[Dr. Sanjiv Agarwal]

E- filing of Returns

Income Tax Department has introduced a convenient way to file income tax returns online using the Internet. The process of electronically filing the income tax returns through the Internet is popularly known as e-filing of returns.

Registration for online filing

Without the unique User ID and password no person will be able to access the web site. This registration needs to be done only once.

After registration, login into the Home Page of the Income Tax Department website using the newly generated User ID and password.

In case of a corporate assessee, as the data relating to PAN & Incorporation date are available over the internet, anybody could register in the name of the Company and falsify the IT returns. Accordingly additional security measures are suggested. To register the name of the company, it must be exactly the same as it appears in the PAN card or PAN intimation letter. Additionally, the Company can file the return using its digital signature.

In case of a company, a company has to create its own user id and password using its PAN. The company return can only be filed under that user id / password because the PAN in the return must match with the PAN associated with the user id / password.

E- Payment of taxes

E- Payment of taxes is a facility provided to the taxpayers to make income tax payments through internet by using net banking facility.

E- Payment is mandatory for-

In case of all corporate assesses

In case of all assesses (other than company) where provisions of Section 44 AB (Tax Audit) of the Income Tax Act are applicable.

Advantages of e- payment

Taxes can be paid from any location at any time through net banking account .i.e, 24X7 facilities.

Instant transfer of funds from bank account.

The details written by the assessee on e-challan will be directly sent to Income Tax Department. Banks will not do any data entry.

Assessee can save/print the copy of challan and receipt.

As soon as the bank authorizes payment of the amount, assessee will receive a clear, legible receipt/counterfoil from bank.

Transaction ID of the e-payment transaction will be available in the bank statement.

Filing returns online

Any individual or organization that files returns using the general method can take advantage of this facility. The pre-requisite for filing online is that you must have a valid PAN number.

 E-filing offers convenience of time and place to tax payers. This facility is available round the clock and returns could be filed from any place in the world. It also eliminates/ reduces interface between assessee and tax officials. The procedure of e- filing is explained on the home page of the Income Tax's official website- www.incometaxindia.gov.in

The benefits of E-filing IT returns

There are several benefits of filing income tax returns electronically:

· Accuracy: Income tax returns filed electronically are more accurate as data can be verified easily since all the fields are interconnected, therefore mathematical accuracy as well as data accuracy is better.

· An eco-friendly process: E-filing contributes to saving the environment as it saves enormous amounts of paper work.

· Secure: This is a more secure way of filing income tax returns and allows you file the returns even from home, your workplace or even a cyber cafe.

· A 24X7 facility: This facility is available round the clock and returns can be filed from anywhere and anytime. Thus, if it is the last date, you can submit your returns without thinking of people lined up outside the Income Tax Office.

· Easy Access: To access the acknowledgement form (Form-V), just log in on the department's site and then choose the 'My Account' option. Then select the My Return option and enter your password to generate the acknowledgement again.

Confirmation of e-filing

· After the e-return file has been uploaded successfully onto the Income tax Department server, a receipt is displayed with an acknowledgment number. The acknowledgment number is confirmation of the successful submission of your e-returns.

· The receipt containing the acknowledgement number is the only valid proof of electronic submission of the return. A physical return without a provisional acknowledgement number cannot be accepted for further processing and would be returned.

· The assessee would be able to printout acknowledgement with an acknowledgement / ITR-V form in case of a successful upload. In case of any breakdown during the transmission of the xml file, the assessee can re-submit the return. However, the assessee can verify the "My Return" submenu under the "My Account" menu. If the return had been uploaded successfully before the breakdown in transmission, the copy of the acknowledgement will be available for taking printout. The acknowledgement sheet can also be reprinted under "My Return" sub-menu after logging in.