It was lunchtime in the office, Raghav and Sunil were seated in the cafeteria. Sunil noticed that Raghav was not eating, rather he was lost in some deep thoughts. He asked Raghav what was troubling him. Raghav told Sunil that he had to file his income tax returns, but wasn’t able to do so as he was keeping very busy with his work schedule. The deadline for ITR filing was fast approaching and but due to work pressure, he won’t be able to file his ITD and will have to pay a penalty for it. In fact, the Raghav was about to discover a new, digital way of paying Vakil search for Quick e-filing, ITR verification and tax calculation.
Sunil sighed and said is this all you are worried about, I thought you were into some deep trouble. He asked Raghav to cheer up and told him that he had a great solution for his problem. He asked Raghav to file his ITR the way he did, through E-filing. Raghav didn’t know what E-filing was so he asked Sunil to elaborate. Sunil looked at his watch, there was another half an hour for the lunch break to get over, so he decided to explain everything in detail regarding the online method of Income tax return filing to Raghav. He told Raghav that Income tax return filing can be done in two ways either manually or through e-filing method. E-filing is nothing but filing your income tax returns online. E-filing of income tax and TDS is becoming very popular due to the following reasons:
- It is a paper-free procedure.
- It is faster and less cumbersome.
- One doesn’t need to go to any office but file their returns at the comfort of their homes by using the internet.
- E-filing is much easier as compared to the manual filing of taxes.
Many people use the e-filing method for online TDS return filing. Raghav found this information very interesting and asked Sunil to tell more. Sunil smiled and continued. There are three types of E-filing
- Use of Digital Signature Certificate (DSC). This is a mandatory procedure and is handled by a chartered accountant to fill in various income tax forms.
- If due to some reason you are unable to e-file your ITR using Use Digital Signature Certificate (DSC), then income tax return form V is generated and it has to be printed, signed and submitted in Bangalore to CPC, through speed post or ordinary post. The deadline for submitting ITR form V is within 120 days of e-filing of ITR.
- Income tax return filing through the method of e-filing can be done through E-return Intermediary (ERI) with or without DSC.
Sunil then elaborated about the steps that are to be following while e-filing ITR.:
- The first step for e-filing of ITR is to log into the site – gov.in and register oneself there.
- One has to login with his Pan (Permanent Account Number) as the user ID.
- Once you are logged in view form 26A your tax credit statement. Note that your TDS details as per Form 16 should match the details provided in Form 26A.
- Once this is done click on the ITR forms and choose the financial year for which ITR is to be filled.
- You can download the ITR forms that are applicable to you. If you’re exempted of income exceeds then download ITR-2. ITR-1 and ITR 4S forms can be completed by using Quick e-file ITR’ link, available on the portal itself.
- Open excel utility-software and fill the form using details from Form 16.
- You can check your tax payable amount by clicking on the ‘calculate tax’ tab.
- Once the amount is clear if applicable pay tax and fill the challan details.
- You can confirm all data provided on the worksheet by clicking the ‘validate’
- Generate an XML file and save it
- Upload the saved XML file on the portal panel. Once you do so, a pop up shows up asking you to digitally sign the file; click yes if you have attained a digital signature or else click on no button.
- Download the acknowledgment form ITR Verification (ITR-V) which will be generated after you complete the above procedures. Take a printout of it and sign it in blue ink. Post it through normal or speed post to – Tax Department-CPC, Post Bag No. 1, Electronic City Post Office, Bangalore, 560 100, Karnataka within 120 days of online income tax return filing.
Sunil also told Raghav that while e-filing one needs to a lookout on the following things:
- The same mobile number and email address can’t be used for more four taxpayers.
- If there is the slightest difference in the names mentioned in your bank documents, and official statements from that in the PAN card; then the IT portal will consider you as different individuals.
- If an NRI is filing his ITR then he will have to provide details about his Indian and foreign numbers.
He also educated Raghav on the checklist to be kept in mind while filing ITR
- Choose the right form to file your taxes online.
- Checking your tax credit – Form 26AS vs. Form 16
- Claim 80G, savings certificates, and other deductions
- Interest statement on savings accounts and fixed deposits
Apart from this one needs to keep the following things handy.
- Last year’s tax returns
- Bank statements
- TDS (Tax Deducted at Source) certificates
- Profit and Loss (P&L) Account Statement
- Balance Sheet and Audit Reports, if applicable.
Sunil told Raghav as ITR one can also file their TDS returns online. Raghav was captivated by the thought that filing ITR or even filing online TDS returns was so easy. All his tensions disappeared and he thanked Sunil for updating him.. Sunil smiled and also told him that his burden would lessen further if he took help from VAKILSEARCH, a company that assists people to file their ITR and TDS returns. One can visit their website to know more https://vakilsearch.com