E-filing and other Online Initiatives by the Tax Department
Internet is one of the most important inventions of 20th century and it has a profound effect in our everyday life. Internet has been used wisely to do transactions which were painful or time taking and lacked transparency. For example booking air or train tickets, shopping, finding life partner, paying utility bills etc. There are many convenience services like online banking, share trading which have been adopted at a large scale and have become the preferred methods. Income Tax Return filing was one such painful experience which has been simplified by the many IT initiatives by the Income Tax Department.
Nowadays you can view your tax credit online, pay taxes online, file your return online, track the processing status in real time and also get the refund online directly credited to your bank account. You don’t need to stand in queues anymore or or be at the mercy of the bureaucracy. Lot of these things are completely automated and transparent..thanks to adoption of IT and internet by the Income Tax Department.
How E-filing is different?
E-filing is filing of return online which can be done on a 24X7 basis from anywhere. You just need access to internet. There is no need to visit the Income Tax office or contact a CA. It doesn’t take more than 20 minutes of time.
Benefits of E-filing
Convenience: E-filing can be done 24 hrs day, 7 days a week
Security: Income Tax return is encrypted and transmitted over secure lines to ensure confidentiality
Accuracy: Electronically filed returns are less prone to errors than paper returns
Tax Refund: One can have their refund directly credited in to their bank accounts
Proof of Filing: An ITR-V form which is nothing but an acknowledgment form, will serve the purpose of evidence or proof for the filing the return
Types of E-filing
There are three ways to file the return electronically. They are as follows:
Option1: Filing using Digital Signature, in this case no need to submit the return
Option2: Filing with out Digital signature, in this case ITR-V form has to be filed with the department
Option3: Filing through an E-return intermediary, in this case the intermediary will do E-filing on your behalf
Option 1: File your return through intermediaries like www.taxyogi.com
1. Use friendly. Can be done by anybody without any prior experience or knowledge
2. Real Time Assistance and Tax saving advice
3. Free and Paid versions with nominal cost
4. Tax form audit
Option 2: File your return at Income Tax site: https://incometaxindiaefiling.gov.in/
1. Download Return Preparation Software for appropriate Return Form.
2. Fill your return offline and generate a XML file.
3. Login and click on relevant form on left panel and select "Submit Return"
4. Browse to select XML file and click on "Upload" button
5. On successful upload acknowledgement details would be displayed. Click on "Print" to generate printout of acknowledgement/ITR-V Form.
6. In case the return is digitally signed, on generation of "Acknowledgement" the Return Filing process gets completed. You may take a printout of the Acknowledgement for your record
Other User Friendly IT initiatives
When you are working or tax on your income is deducted at source by anybody else like a bank, it is deposited with the IT department. There is a penalty if the tax is not deposited on time. Now you can see all the taxes deposited on your behalf anytime for free with many other details.
How to View Form 26AS?
Option 1: Register for viewing Form 26AS by registering for e-filing on https://incometaxindiaefiling.gov.in/. Registration is immediate, without any cost and does not obligate e-filing,
(a) After logging in click on My Account tab
(b) There will be an option View Your Tax Credit Statement (Form 26AS)
(c) It will take you to DOB verification page
(d) In the next step it will ask your permission to be redirected to the NSDL site where you have to press the confirm button
(e) You will be re-directed to your Form 26AS and you can select the assessment year in the top right corner for which you want to see the details.
(f) Please remember that Assessment year is 1 year ahead of the financial year. For example for FY 2010 – 11 the assessment year is 2011 –12
Option 2: Through net banking facility of 19 authorized banks. Login to your netbanking account and check if this facility is provided.
Option 3: Through registration with NSDL
Online Payment of taxes
In case enough tax has not been deducted on your behalf, you are liable to pay the penalty. You can now pay the tax online in a few minutes using net banking facility. This is the link: https://onlineservices.tin.nsdl.com/etaxnew/Index.html
E-filing Processing Status
Once you do the e-filing, the online system will keep you updated about the status. You will come to know if the ITR-V has been received or not, whether there is any error, if the return has been processed, refund status etc. You don’t need to run from pillar to post anymore. All you need is to signup with https://incometaxindiaefiling.gov.in/
Income Tax Refund
When you file the return online, your returns are processed faster and your refund comes much faster. You can opt for online transfer for the refund amount to your bank account or cheque delivery. In case of the first option, the refund amount will be credited directly to your bank account. The IT department will intimate you about the amount through email via notice u/s143
If you think that the tax department has done some mistake in its assessment, you file for rectification online and they will reconsider it. You don’t need an expensive Chartered Accountant or a Tax consultant to do it for you.