E-filing: Filing income tax technological style
Standing in long queues and waiting multiple hours for term to come to file income tax return. But now income tax department has certainly executed a techno savvy solution to the problem of a common man, in the form of E-filing.
Come the first quarter of the year, thoughts of filing income tax return just circulates in people's mind all time, again and again, which is certainly bound to give nightmares. ITR filing has never been as easy, after the introduction of the facility known as E-filing.
In this Internet-driven age every sector and segment are partially or completely dependent on the world's most important invention of the modern times, Internet. Facilities like online banking,online news, online mutual fund investments, online buying and selling are few common practices people come across in our daily life. Forming it as the base, the Income Tax Department of India launched the Electronic filing of income tax returns. The process of electronically filing of income tax return through the Internet is known as e-filing. Under the process, citizens of the country can file the tax returns in a hassle free way. One just needs to have a PC enabled with Internet connection. Just log on to the official website of the income tax department and fill the form and submit it, Online or Offline. So, paying tax in just few clicks is the latest style of serving government financially.
The whole Income tax filing process needs to be done with care such as gathering all the important files and a latest rule book of filing income tax returns as it keeps changing with fresh year. Decision of whether the personal tax return will be filed as single, head of house hold, married or what ever, should be taken at the proper time. One also needs to have proper data about income, expenditure and savings with him. Filing tax returns online is the simplified method of filing ITR as once log on to the income tax site and follow the simple instructions.
There are three different types of E-filing:
1.Use digital signature, in which case no further action is required.
2.File without digital signature, in which case ITR-V single page receipt cum verification form is to be filed with the department.
3.Consult a e-return intermediary who would do e-Filing and also assist the Assessee file the ITR-V Form.
For e- filing process one needs to download software application from the website of Income Tax Department, which will help in generating the income tax form. Now, the most important thing is that selection of the right kind of the form filing for the ITR.
Individuals, who have been earning from Salary / Pension or have income from other sources like Interest / Family Pension are supposed to use Form ITR1. However, person having income from Capital Gain, House Property (e.g. Rented out the Property), Business & Profession are not supposed to fill this form . Form ITR2, will be used by the Individuals and HUF (Hindu Undivided Family) having income from Salary / Pension / Family Pension, interest, house Property, capital gains. A person as the partner in a firm or representing on behalf of an HUF that is a partner in a firm will have to fill the Form ITR-3 and Form ITR-4 will be filled by Individuals, HUFs (Hindu Undivided Family) having income from proprietary business or profession. There are 4 more types of ITR form, which are to be used by the specific person.
After downloading a proper form from the official website of the Income Tax department. Fill up Income and tax details, ensuring accuracy about the data submitted . Than save the IT return document in XML file format on the computer. Finally, log on to the Income Tax Department E-Filing website by using personal log in ID and 'Submit the IT return'.
Hence, one can easily say that E-filing has transformed the way of filing of income tax return in a more simplified and techno savvy way.
Come the first quarter of the year, thoughts of filing income tax return just circulates in people's mind all time, again and again, which is certainly bound to give nightmares. ITR filing has never been as easy, after the introduction of the facility known as E-filing.
In this Internet-driven age every sector and segment are partially or completely dependent on the world's most important invention of the modern times, Internet. Facilities like online banking,online news, online mutual fund investments, online buying and selling are few common practices people come across in our daily life. Forming it as the base, the Income Tax Department of India launched the Electronic filing of income tax returns. The process of electronically filing of income tax return through the Internet is known as e-filing. Under the process, citizens of the country can file the tax returns in a hassle free way. One just needs to have a PC enabled with Internet connection. Just log on to the official website of the income tax department and fill the form and submit it, Online or Offline. So, paying tax in just few clicks is the latest style of serving government financially.
The whole Income tax filing process needs to be done with care such as gathering all the important files and a latest rule book of filing income tax returns as it keeps changing with fresh year. Decision of whether the personal tax return will be filed as single, head of house hold, married or what ever, should be taken at the proper time. One also needs to have proper data about income, expenditure and savings with him. Filing tax returns online is the simplified method of filing ITR as once log on to the income tax site and follow the simple instructions.
There are three different types of E-filing:
1.Use digital signature, in which case no further action is required.
2.File without digital signature, in which case ITR-V single page receipt cum verification form is to be filed with the department.
3.Consult a e-return intermediary who would do e-Filing and also assist the Assessee file the ITR-V Form.
For e- filing process one needs to download software application from the website of Income Tax Department, which will help in generating the income tax form. Now, the most important thing is that selection of the right kind of the form filing for the ITR.
Individuals, who have been earning from Salary / Pension or have income from other sources like Interest / Family Pension are supposed to use Form ITR1. However, person having income from Capital Gain, House Property (e.g. Rented out the Property), Business & Profession are not supposed to fill this form . Form ITR2, will be used by the Individuals and HUF (Hindu Undivided Family) having income from Salary / Pension / Family Pension, interest, house Property, capital gains. A person as the partner in a firm or representing on behalf of an HUF that is a partner in a firm will have to fill the Form ITR-3 and Form ITR-4 will be filled by Individuals, HUFs (Hindu Undivided Family) having income from proprietary business or profession. There are 4 more types of ITR form, which are to be used by the specific person.
After downloading a proper form from the official website of the Income Tax department. Fill up Income and tax details, ensuring accuracy about the data submitted . Than save the IT return document in XML file format on the computer. Finally, log on to the Income Tax Department E-Filing website by using personal log in ID and 'Submit the IT return'.
Hence, one can easily say that E-filing has transformed the way of filing of income tax return in a more simplified and techno savvy way.
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