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Income Tax E-filing and its benefits

Posted in Finance, Income Tax, India.

What is E-Preparation of Income Tax Return?

E-Preparation of IT Return is the process of preparing your Income Tax Return using a software.

The E-Preparation  software can be of 2 types: Form-16

A. Manual Calculation:

Those that allow you to enter your Income Tax data but do not calculate the Income Tax & Refund etc. The individual user needs to calculate the above himself/herself

B. Auto Calculation:

Those that take the Income Tax related data that you have entered  to automatically calculate the Income Tax and Refund  using their  inbuilt  tax calculation engine that is updated for current rules

Auto Calculation Software  is more efficient and less prone to calculation errors.

What is E-Filing of Income Tax Return?

E-Filing of IT Returns is the process of electronically submitting your Income Tax Return to the Income Tax Department.

This electronic submission can be done in one of the following ways:E-Filing

A. Manually :

Where you  take the output of the software in XML or non-XML format , convert to XML in case of the latter and upload it  to the Income Tax Website.

B. Automatically:

Providers that are  Authorized E-Return Intermediaries of ITD,  are integrated with the Income Tax Department and authorized to E-File  your Income Tax Return. Such providers allow you to E-File your return with a click of a button.

XML upload  is tedious and  user may run into issues  for incorrect format or validation  error.

How do I sign my Income Tax Return when I E-File?

An ITR is an important document and the individual to whom it belongs needs to sign it – Manually or Digitally to affirm that (s)he has reviewed it and is the one who is officially submitting the ITR.

An IT Return can be signed in the following ways when it is being E-filed:Digital Signature

A. Digitally :

Use digital signature, in which case no further action is required. An acknowledgment of filing is provided instantly after submission.

B. Without  Digital Signature (paper signature):

You can  E-File without digital signature, in which case ITR-V form is to be physically signed &  filed with the department’s Bengaluru office  .ITR-V is a single page receipt cum verification form that is sent to the assessee via an e-mail from ITD.

Benefits of E-filing ITR

E-filing is easy, fast, and the most reliable and secure method

  • Fast Processing:  The acknowledgment of ITR submission is fast and the refunds are processed faster by the ITD for E-Filed ITRs.
  • More Accurate:  E-Filing software with built-in validations and electronic connectivity to ITD are seamless and help minimize errors.  Paper based filing with self calculations can be prone to error. Also, when any paper based form is transferred to electronic system , there is always a possibility of human error in data entry.
  • No Time place  constraint: You can file anytime, anywhere. E-Filing is available 24 hours a day, seven days a week , so taxpayers may always file at their own convenience.
  • More Secure than Paper based filing: E-filing is safer than paper based filing. With paper based filing your confidential identity information is lying in files and can be passed from person to person in the CA’s office or in ITD’s office.
  • You can easily access and use your data for future returns: Most of the paid E-filing software applications store your data in a secure manner and allow you to access it whenever you are ready to file subsequent returns.
  • It is good for the environment:  E-Filing is environment friendly. You just need to print  no or at most one page instead of multiple copies of multiple pages  that is required in case of paper based filing.

How to select an E-filing Software

AttributeLow EndHigh End
Tax CalculationYou calculate yourself Automatically Calculated
ITR generationPDF file for manual submission in local ITD Office Only or XML Direct transmission* to ITD
Data  Transmission to ITDYou upload XML Automatically transmitted*
Support to end usersNo Support provided or minimal support provided Support Staff can be accessed via email, chat or phone 24*7
SecurityLimited Over 128 Bit SSL to protect your confidential Information
Storage of past ITRNot Provided Provided so that you may import your previous ITRs data

* Provided by ITD Authorized E-Return Intermediary Only


150 Responses

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  1. VIGNESH says

    Hi
    1.My father is getting his pension of rs. 15000 per month which amounts to 1,80,000.he is 54 now (gave vrs).He actually has many bank fixed deposits. will he be eligible to give 15G/15 H? if he gives unknowingly will that be an offence?
    2.should he need to file the tax returns here after eventhough he is retired person?what will be the effect if he does not pay?
    3.My mom is not working but having some fixed deposits and it s interest is not even above 50 000. is it mandatory for her to pay and file tax returns?
    4. We all are vacating the house and goi to new city. should we need to keep on updating our pan card address as we move?

    Thank you so much

    • Pankaj Batra says

      @Vignesh
      1. Your father can submit form 15G to his bank. Bank won’t deduct TDS in case same have been submitted. He is eligible to submit form 15G, any person who has income less than taxable range can submit this form to avoid TDS deduction.
      2. If his income is more than taxable threshold, before any tax exemption/deductions, then he needs to file income tax return. It does not matter whether a person is retired or working. If he does not pay income tax or does not file income tax return, he may get a show cause notice from income tax department.
      3. Same case applies to your mother as in point 2. But as her income is around 50,000 only in a year, she can skip filing income tax return as her income is below taxable limits.
      4. Its better that new address is updated on PAN card as in case IT department sends out some communication, it should be received by you.

      • VIGNESH says

        Hi pankaj
        Thank you so much…
        1. say my father s income is above that taxable limit he is giving 15 g will this become a problem.?will the bank chk our income??
        2.do senoir citizens have different tax slabs? is that applicable for those ppl who gave voluntary retirement?

        Normal person like me on reading the articles got good exposure regarding the financial matters. I have suggested this website for many of my friends.

        . Hats off for ur work.

        • Pankaj Batra says

          @Vignesh
          1. Bank won’t check your income and will trust your form 15G declaration. Its tax payer responsibility to declare it if necessary. In case your father’s taxable income (after all exemption and deductions like 80-C etc) is more than taxable threshold, then your father should withdraw form 15G back.
          2. There is different tax slab for senior citizens (above 60 years). But if age is below 60, it won’t be applied even if person has taken voluntary retirement. Check income tax slab rates on this page: http://www.pankajbatra.com/india/income-tax-calculator-india-2010-2011-2012/

          Thanks for recommending us to your friends :)

      • Jeetendra says

        What is the difference between IT return & Form 16 ?
        What should I do if Employer does not give me form 16 ?
        Out of two which is important ?
        I hv never filed IT return nor got Form 16, what should I do to file IT return or to get form 16

        Jeetendra

        • Pankaj Batra says

          @Jeetendra
          Form-16 is statement issued by employer for salary and other perks paid to an employee during a financial year and tax deducted/deposited for that employee.
          Whereas IT return is income tax declaration by any person to income tax department. It may show income from multiple employers, bank interest, income from other sources like house rent, capital gains etc.
          If employer has paid you salary and deducted taxes, he is liable to issue form-16.
          One can file income tax return without Form-16 as well. Filing ITR is important and mandatory if income of a person is above non-taxable range before any deduction.

      • sunil says

        sir my name is sunil i really don’t know much about incometax………but i had one doubt related to income tax …….we wanna take a term insurance policy in the name of my mother, but it needs that to show some income proofs of the insured person, we but we don’t know how to proceed , at that time one of my relatives said that to pay some advance tax in the name of my mother , and added that we can submit that advancetax payment slips to the priavate insurance company as per income proofs……………….is it correct or not………..what is advance tax,,,,,,,,please send me detailed reply as early as possible……………

        • Pankaj Batra says

          @Sunil
          Insurance company would need form-16, Income tax return or CA certificate for income proof. Just paying advance tax and showing payment receipt won’t be considered as income proof.

          If your mother has no income, why she should pay advance taxes. Term insurance company may not even issue policy in her name if she does not have much income.

  2. Ashish says

    Hi Pankaj, I need your exper help urgently. Today, I got a notice from ITO Pune ward office regarding quoting of invalid PAN in AY 2010-11 return in my office address. In my office, there are 3 persons with my name. We are not able to identify for whom the notice has come because there is no other identification given in the notice which will distinguish us. Can you please advise on how to go about this? Your earliest response will be very helpful for us.

    • Pankaj Batra says

      @Ashish
      You should contact Pune income tax assessing officer regarding same. Letter may have a date and file/notice number mentioned on it. Quote this number while communicating with assessing officer.
      You should also check your return form which you used for income tax return filing for incorrect PAN mention. If return was e-filed, check if letter from ITO contains some e-filing acknowledgement number on same.

  3. KK Sharma says

    Check-up with ITO Pune, assesses’s father’s name

  4. Harshal says

    Hi,
    I wanted to e-file return for AY 11-12 and bymistakely I filed it for AY 12-13(Amt arnd 10k).
    I submitted ITR-V to IT dept Banglore office. They have acknowledged it via e-mail. But I didn’t
    get any letter from IT dept even after 4 months. Is there any way to know status of return filed?
    I checked online and it always says “CPC status not available”. How much time they take usually?
    I paid Rs 9810/- for AY 12-13, so will they consider it as “Advance Tax”? Can I send them letter/application
    to consider that amount for AY 11-12. What if they send me letter saying “I have to Pay amount with intrest”
    and I dont pay at all. Can you tell me any suggestion/way to get rid of this?

    • Pankaj Batra says

      @Harshal
      Amount paid for AY 12-13 would be considered advance tax for FY 11-12 only.
      To adjust it in AY 11-12, Either you can write to your assessing officer for adjustment of tax paid for AY 12-13 in the AY 11-12, Or you can deposit same tax amount again for AY 11-12 and file a revised return. And tax deposited for AY 12-13, you can adjust when filing return for same next year.
      Regarding assessment of return filed, income tax department has already started sending assessment letter and you may soon receive it in next 2-3 months.

      • Harshal says

        Thanks Pankaj,
        I just want to adjust amount against AY 11-12. For this how can I know who is my assessing officer so that I can write to hime?

        • Pankaj Batra says

          @Harshal
          You can check your income tax ward/circle on this link: https://incometaxindiaefiling.gov.in/portal/common.do?screen=jurisdiction
          Income tax assessing officer in this office is handling your returns and you should write to them only.

          • Harshal says

            Hi
            Is there any standard format for this? Can you briefly give me idea how to write to them in this regard? It will be very much helpful

            • Pankaj Batra says

              @Harshal
              There is no as such standard format for same.
              You can explain the issue in letter providing challan number, date of deposit and amount etc.

  5. Pappu Jain says

    Hi Pankaj,
    I have recd Rs. 1 lakh from IEWT Trust. It has deducted TDS @ 20%. I want to know that the amt i have recd after TDS is liable to futher taxable since I am following under 30% bucket. If so then how i can so this in my annual return filing ?

    Also, i have recd Rs 1 lakh in form of ESOP from the same Trust but no share is registered in my name and TDS is alos not deducted on such amt. So is it taxable ? if so then how i can show this in my return ?

  6. sateesh says

    Hi Pankaj,

    I have been following your site and also use your excel sheet for calculation my income tax. Its really great tool.

    This is regarding my mother’s pension. My mother receives pension after demise of my father. She receives around 32K per month. So, that income falls in the tax slab. Do you have any tax calculator for this? Can she use the same calculator which every private employee uses? if so , under which category, she income shall be shown? under basic? Can she claim HRA? Are there any limitations on HRA claim? Will 80C applicable for her too? like can she show 1lakh savings and avoid the tax? And till now, she did not pay any tax, I am doing this calculation on behalf of her. If she has to file on her own, what is the procedure? and what is the last date? and what is 15G ?

    Waiting for your reply… thank you

    Total income is 397506, for that amount, how much tax it would come? if there are no savings?

    • Pankaj Batra says

      @Sateesh
      She can use same calculator. As there are no components in pension, whole amount can be put as basic salary.
      She may claim HRA exemption under section 80GG. Read more about this here: http://www.socialfinance.in/questions/1915/can-i-claim-ta-hra-benefit-if-i-get-consolidated-salary

      80C,80D, 80CCF etc would also be applicable to her for tax saving.

      Income tax return filing procedure is same as for normal salaried employees. She would need to file using ITR1 form. Last date of filing return would be 31st July.

      15G is a declaration form to be submitted to bank for non deduction of taxes as TDS.

      Taxes would be around Rs 15200 (assuming your mother is senior citizen with age more than 60 years)

      • sateesh says

        Hi Pankaj,
        Thank you so much for your reply. I have some more basic questions.
        My mother is 49Yrs old.

        I have a confusion.
        1) How my mother shall pay tax, probably can you point out the steps to pay online? and what is the last date for this. Mar 31st?
        2) Now, as you said, 15200 is the tax to be paid, if it was paid , there is no need of returns right? if im not doing any investments or savings for this financial year.

        • Pankaj Batra says

          @Sateesh
          1. Whatever pending amount she need to pay can be paid online on this link: Pay Tax Online (Use only Internet explorer for this).
          Select challan type as CHALLAN NO. /ITNS 280 and continue.
          Select (0021) INCOME-TAX (OTHER THAN COMPANIES) in tax applicable field and
          Select (300) SELF ASSESSMENT TAX in type of payment.
          Select bank through which you want to pay.
          Last date would be 31st March to pay this. If tax is paid after this date, some interest penalty might be payable.
          2. Even if all taxes are paid, return would also be need to be filed. If a person’s income before any deduction is more than non-taxable range, he/she should file income tax return. This is not mandatory only for salaried class who has less than 5 lakh income, has worked only for a single employer in year and whole income tax is deducted by employer as TDS.

  7. PRAKASH says

    How to fill the ITR-V for AY 2011-12

    • Pankaj Batra says

      @Prakash
      ITR-V is acknowledgement copy of income tax return. It gets generated automatically if you file income tax return online.

  8. Jayashree says

    Sir,

    My income from other sources comes to 2.05 lakhs and i have made a short term capital gain of Rs 0.15 lakhs. I have paid insurance premium of Rs 0.20 lakhs. Kindly tell me on what amount am I supposed to pay tax (whether on Rs. 0.15 lakhs or Rs. 0.10 lakhs) and at what rate?

    Secondly is it compulsory to file the return even if the income is less than taxable limit after Sec 80C deduction? I have also filled in Form 15G for nondeduction of TDS from my bank interest.

    Please advice

    Thanks
    Jayashree

    • Pankaj Batra says

      @Jayashree
      For Women, there is no tax for first 1.90 lakh taxable income. As your taxable income (after 80C deduction) is 2 lakh, you would need to pay income tax on remaining 10,000. Income taxable payable would be at 15% rate as there is a short term capital gain.

      Its compulsory to file income tax return, if taxable income before any deduction is more than non-taxable limits.

  9. Jayashree says

    Sir,

    In addition to the above queries please tell me how to file the return for the earlier years and how much penalty has to be paid.

    Secondly I have long term capital gain from sale of units of mutual fund of 0.50 lakhs. Do i have to show this in the return form while filing the returns eventhough this profit is exempt from tax?
    Please advice

    Jayashree

    • Pankaj Batra says

      @Jayashree
      Income tax return can be filed online without any penalty before end of assessment year (31st March), for which return is to be filed.
      Once this date has passed, you would need to file return in local income tax office in hard copy. There may be penalty demand of Rs 5000 raised by income tax department.
      You would need to show gains from mutual funds in section: “Long-term capital gains on which Securities Transaction Tax is paid” in income tax return form (ITR2) under EI sheet.

  10. Laya says

    Hi Pankaj

    I am filing my ITR online for past 3 years and now I need my last 3 years ITR acknowledgment. But somehow I am not able to find acknowledgment mail for the year 2010-11. Is there any way that I can get a copy of that?

    • Pankaj Batra says

      @Laya
      You can login on income tax efiling website and download ITR-V from there.

  11. Puspendra Kumar says

    My Freinds father are Income tax assessee he expired in december 2011 he does filed ITR for A/Y 2011 -2012 . my freind is only one son he recd all assets like Cash ,FDR , and others , he is assesse . what does tax liability for his

    • Pankaj Batra says

      @Pushpendra
      Your friend would need to file income tax return on behalf of his father for AY 2011-12 and AY 2012-13.

  12. Vikas says

    Hi,

    Can I pay house rent to my Mother, is it acceptable?. Are signed rental receipts enough for these?

    My mother has a pan card and the house which i stay is on my mother’s name. If I show a house rent of 3.21 lakhs per annum, should i file the tax prior to 31 mar. My mother doesn’t have any online accounts. Can i use my online account to pay the dues on time or can i pay it using her credit card?. Also , can we show Medical expenses (8000) and LIC premium(4000) under 80C.

    Regards
    Vikas

    • Pankaj Batra says

      @Vikas
      You can pay house rent to your mother. There is no issue in this. Signed rental receipts (sign on revenue stamps) would be required to claim HRA exemption.

      If you pay 3.21 lakh as house rent to her, she would need to file income tax return. Taxes would need to be paid before 31st March, to avoid any late payment penalty. But before paying tax, you would need to compute actual income tax based on her age and slab rates. If required, please download income tax calculator from this page: http://www.pankajbatra.com/india/income-tax-calculator-india-2010-2011-2012/. She can also avail 80C, 80D etc deductions.

      You can deposit advance tax in bank branches by paying cash/draft and get a challan. Same can also be paid online using netbanking. Credit cards won’t be accepted for this payment. Ideally it should be paid from your mother’s account. If you are unable to pay from her account, just transfer that amount from her account to yours and pay it online from your account.

  13. sunitha says

    Hi,

    I went to the bank on 13/03/2012 to pay self assessment tax through challan 280(individual) for Rs. 7500 for ass year 2012-13 , but the bank person said that the income tax site is not allowing the tax to be paid as self assessment tax, they said either pay as advance tax or tax on regular income, when i asked my friends they said you have to pay only as self assessment tax, please tell me from when we can starting paying tax as self assessment tax (code 300 in the challan 280)and not as advance tax (code 100 in the challan 280)or tax on regular income ( code 400 in the challan 280)( and when is the last date, and which site is used for online tax payment and how? please help………..

  14. Jayashree says

    Sir,

    Thank you very much for your quick response.

    I forgot to mention that the Birla Sunlife Ins Policy is a ULIP a I had purchased it in Nov 2004. Since the surrender is after three years the profit that is made is exempt from tax. But in which section is this exempt and under what head do I show this amount.
    Please guide me.

    Jayashree

    • Pankaj Batra says

      @Jayashree
      If ULIP has been kept for more than three years, profits from it won’t be taxable. There is as such no need to declare same in income tax return.

  15. vignesh says

    Hi Pankaj,

    My father met with one accident in 2009 dec. For the following years he did not do returns. As he was working in railways he did not file his returns 2009- 2010 yr and 2010 and 2011. But fortunately he was getting his salary thru railways and they have paid the income tax (TDS)for the year 2009-2010 and some small diff was there. we are intimated abt the diff. i paid that thru online.
    NOw my question.
    1. I dont have the income details of the year 2010 -2011. should he need to file the returns or he can leave?

    As we have changed the address there is no chance of intimating us abt the excess we need to pay them. if one yr returns filing if we skip will tat be any problem?

    2. I have the income details of this yr. 2011-2012. i will be doing the tax filling within this june along with mine..

    • Pankaj Batra says

      @Vignesh
      As your father was getting salaries, he would need to file income tax returns.
      If its not done, one may get notice from IT department.

  16. akash batra says

    Sir, can you please explain about “ADVANCE TAX(100)” , “SELF ASSESSMENT TAX(300) ” and “TAX ON REGULAR ASSESSMENT (400) mentioned in Challan 280 , in relation to individual salaried employee having no other income.. Kindly explain about circumstances under which these taxes are applicable to an individual salaried employee having no other income ..
    I guess this will clear the doubts of thousands of salaried individuals who read your blog..

    • Pankaj Batra says

      @Akash
      Advance tax is tax is paid in advance by estimating the income that will be earned during the year. In case of salaried employees, TDS deduction done by employer takes care of this. But if somebody have extra income also like fixed deposit interest, mutual fund/equity gains etc. he may need to pay advance tax himself by computing extra tax.
      Self assessment tax is pending tax payable. It is the difference between the tax paid and the tax payable. It has to be submitted before income tax return filing.
      In case Advance taxes are not paid on time, there may be interest payable u/s 234C.
      And in case full taxes are not paid by 31st March, interest may also be payable u/s 234B.

  17. akash batra says

    Sir , I have never e-filed my return.. This time I am considering to e-file the return..
    I need your help in this. I was going through excel ITR form available at incometaxindiaefiling.gov.in , in the TDS SECTION , there is a chart No. 24 about TDS ON INCOME OTHER THAN SALARY . In this chart there is one column about TOTAL TAX DEDUCTED (column no.4) than next to this column there is column no.5 about “AMOUNT OUT OF (4) CLAIMED FOR THIS YEAR ”
    I have confusion about this column No.5 .. what to enter here? What do they mean by ” AMOUNT OUT OF (4) CLAIMED FOR THIS YEAR “?

    • Pankaj Batra says

      @Akash
      There may be some taxes paid in this year which are from last year or coming year. It may be applicable on fixed deposit where interest are not paid but commutative in account.

  18. sunitha says

    Sir,

    I tried paying tax online at this site:
    :https://onlineservices.tin.nsdl.com/etaxnew/tdsnontds.jsp today 21st march and i selected these fields 1. CHALLAN NO./ITNS 280 2.(0021)INCOME-TAX (OTHER THAN COMPANIES) 3.(300)SELF ASSESSMENT TAX and gave the ass year as 2012-13 but the site does not allow be to proceed and the following comment appeared “Assessment Year cannot be greater than the current financial year for the type of payment selected by you” please help have i missed the last date for paying tax , please help sir…………….

    • sunitha says

      Also sir i have calculated i have to pay 7500 rs as tax for as 12-13 when should i pay it , what is the late date for paying this amount if i have to pay it as self assessment tax.

      or is it allowed to paY 7500 RS AS advance tax for ass year 12-13 , is it last date over.

      what is the correct procedure please help and advice…..thank you very much.

    • Pankaj Batra says

      @Sunitha
      In case income tax payment is made before end of financial year (31st March), it would be taken under Advance Tax category and not as self-assessment tax. After 31st march, it would be assumed as self assessment tax.

      • sunitha says

        Thank you sir , when is the last date for paying self assessment tax sir?

        • Pankaj Batra says

          @Sunitha
          As such there is no last date for self assessment tax. It has to be submitted as early as possible after 31st March to avoid any interest penalty.

          • sunitha says

            Thank you very much sir !!!!

  19. Raj says

    I am a salaried person with some additional income from Royalty of books of scientific nature which I had authored. I want to claim deduction on the income from Royalty for which I have the required Form 10CCD from the publisher. Kindly, confirm if it is mandatory to submit this form along with the IT Return to claim deduction and if yes, what is the procedure for submission of Form 10CCD in case of an e-filing through the income Tax filing website, https://incometaxindiaefiling.gov.in

    • Pankaj Batra says

      @Raj
      No document needs to be attached with income tax return forms. In case income tax department have any doubt on your declarations in ITR, they can raise a query later while assessment, at that time you may have to send supporting documents.

  20. geet says

    Sir , my tax amt is Rs. 10723 /- without including TDS of Rs. 3618 made by my company, just now i realized i should have paid the balance as 7105 /- as advance tax by 15 th mar , can i pay online by 31st mar if yes should i pay along with penalty amount,what is the penalty amount i should pay please advice immediately sir.

    other option:-
    if i invest Rs. 8000 in PPF by 31st march can i avoid advance tax and its penalty and pay the remaining tax amt due as self assessment tax.please advice.

    • Pankaj Batra says

      @geet
      As pending tax amount is less than Rs 10,000, there won’t be any interest penalty even if you pay this amount after 31st March. Just make sure its paid before income tax return filing last date (31st July). This amount can be paid as self assessment tax after 31st March.

      If you want to save tax, you can invest into any of the options available under 80C, 80D, 80CCF etc.

      • Geet says

        Thanks for your reply sir…

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