Importance Of Filing Income Tax Returns

 

Complete Guide to Online Income Tax e-filing

Importance Of Filing Income Tax Returns

If you have earned Rs. 5 lakh or more during the financial year 2012-13 i.e. the year starting from 1 April 2012 and ending on 31 March 2013, you will need to file your returns electronically. The income tax authority i.e. the Central Board of Direct Taxes is responsible for the diktat.

And as usual, you need to file your return before 31st of July, 2013. Well, this task may seem a little daunting at first glance as we are all so used to the paper mode of filing returns, but don’t despair since the process is quite simple and easy. Read on to know more.

Steps for e-filing returns

The e-return can basically be filed in two ways as detailed below:

1. Directly on the website: If you have only salary and interest income, you may simply visit https://incometaxindiaefiling.gov.in/, register yourself if not already done, and key in the details online in Form- ITR 1, prepare the return and submit it. You would then have to print the acknowledgement, sign it and send it to the central processing unit.
2. By downloading the excel utility: Here, you have to log on to the above site, select the applicable return form. You then need to download the excel utility, fill in all the details offline and then upload this as an XML file. On successful submission, an acknowledgment in ITR V would be mailed to your email address. If you have digitally signed your return, then the process is completed. If not, you would have to sign and send the printed acknowledgement to the central processing unit.

Which form is applicable to you?

The Pros and Cons of E-filing:

As with everything else in life, there are both advantages and disadvantages in this method of filing income tax returns. Here’s a look.

Advantages:

• Tax calculation is accurate and simplified as it is done automatically by the software based on your inputs.
• Possibility of quicker refunds since the e-return is processed centrally at the central processing unit at Bangalore. You would be spared of the hassles of following up on your refund with your income tax office as is the practice now.

Disadvantages:

• You may now need to seek professional help if you wish to do this process offline, and this may cost money.
• Given the rather poor internet connectivity in most parts of India, the process could be quite time consuming.

However, the online process if far more efficient than the offline one, and in the long run, it will only help smoothen the filing and refund process.