TAX NEWS - June 2010

e-filing of income tax returns

The month of July is nearing and with it is the last date to file income tax returns. With internet grasping its hold in all sectors, the process of electronic filing of income tax returns has come as a boon to all tax payers. Using this process, a person (assessee) can file his returns very easily without having to go through the hectic manual process and long hours of waiting in queue at the income tax office.

The assessee can e- file returns in three ways:

a) He can use his digital signature as a proof while e-filing his return. In this case no other verification is required.

b) In case he does not have a digital signature, he has to submit an ITR-V form to the income tax department. The ITR-V acts as a receipt cum verification form.

c) The assessee can also file his return through an intermediary who would not only be e-filing the return but would also assist the assessee in filing the ITR-V form.


Process of e-filing income tax return:

- Electronic filing of income tax return with rupeetimes.com is a very simple and hassle free process.

- The next step is to select the suitable plan from the ones offered.

- The person next needs to fill his personal as well as financial details as asked during the process of filing the return.

- The assessee has to give details of the Form 16 filled by him during the process.

- Once he verifies that the information provided by him is correct, an XML file of his return is generated automatically.

- The assessee then has to fill the verification form known as ITR-V that needs to be verified at the nearest income tax office within 15 days of filing the return online after which an acknowledgement receipt is generated by the Income Tax department.


Benefits of e- filing of tax returns:

a) It enables a person to file his returns from anywhere and at any time. Also the hassles of long hours of waiting in the queue at the income tax office are removed.

b) Time needed for processing returns is very less.

c) As soon as the assessee completes the form, the taxable amount attributed to him is automatically calculated.

d) It generates an acknowledgement slip confirming the acceptance of the return form immediately after the form is successfully uploaded.

e) It is a safe and secure mode of filing returns due to the presence of security certificate.