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:
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
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.
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:
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.
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.
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:
Use digital signature, in which case no further action is required. An acknowledgment of filing is provided instantly after submission.
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.
| Attribute | Low End | High End |
| Tax Calculation | You calculate yourself | Automatically Calculated |
| ITR generation | PDF file for manual submission in local ITD Office Only or XML | Direct transmission* to ITD |
| Data Transmission to ITD | You upload XML | Automatically transmitted* |
| Support to end users | No Support provided or minimal support provided | Support Staff can be accessed via email, chat or phone 24*7 |
| Security | Limited | Over 128 Bit SSL to protect your confidential Information |
| Storage of past ITR | Not Provided | Provided so that you may import your previous ITRs data |
* Provided by ITD Authorized E-Return Intermediary Only
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Thanks for the great article Pankaj. I want to start a Tax Consultancy that files returns for individuals, HUF, property etc. So, what's your advice, resources etc? I'm digging through your site for more resources anyway, but do tell me what more I can do.
i am manoj khandelwal...in F.Y 2009-01 i have received professional fees in South Africa. and tax paid to South Africa's Govt...
i am Resident in india..so what tax treatmaent in A.Y 2010-11..??
@Manoj
If you have stayed in India for more than 180 days in FY 2009-10, all income earned abroad are also taxable in India.
India has Double Taxation Prevention Treaty with South Africa, so can file for income tax refund there for the tax paid.
I stay and work in Kolkata India. I stay in a rented accommodation and hence claim exemption againt HRA (under Sec-10).
I am also paying EMI against a property that I have booked, although I havent taken possesion of the same. The EMIs are paid against a loan taken from HDFC.
My question is : Can I claim for tax benefit for BOTH (a) HR paid and (b) the Interest paid against my loan?
@Debabrata
1. Benefits of home loan interest and principal cannot be availed before possession of property.
2. In case your owned property (on which loan has been taken) and your office are not in same city or not at a commutable distance, then you can avail benefit of both HRA and home loan.
i have downloaded ITR 1. and filled offline also , but when i am converting it to XML its says, file is password protected. and i don't know the password as it was downloaded from direct income tax department official file
@Dev
Before generating XML, you will have to enable macro in Microsoft Excel, or if you see a security warning above document, enable that.
Pankaj, I always eagerly wait for new articles from you. Thanks for sharing it!
I have one question. Not able to get appropriate answer. Can you help me?
For AY 2010-11, last year,
I had asked an agent to file my return. Today, when I check, I do not
have acknowldegement of ITR-V for AY 2010-11. I am not sure if the
agent has filed the return or not. Now, his contact details might have
changed, so can not ask him. I checked in indian government e-file
website, where I found that it is not e-filed. Now, only thing need to
know whether it was paper filed or not.
Can you please help me on this how to find this?
Also, if filed, how to get duplicate copy of ITR-V acknowledgement?
Thanks,
Ashish
@Ashish
In case of physical submission of income tax return, acknowledgment is provided at the same time by giving a stamped copy of return.
Offline submission cannot be tracked online.
You will have to contact your agent to get your stamped return copy. Else you can contact your assessing officer for providing an assessment statement.
Thanks Pankaj. What is assessment statement? Is it different from the ITR-V ack.
Also, I stay in Pune while agent was based at Nagpur who filed the return. Does that mean I have to travel to Nagpur to collect the document? Also, does assessing officer sit in same place where physcal retuns are filed or he sits elsewhere?
@Ashish
Assessment statement is different from ITR-V. Its generated when assessment is completed by income tax department. Its shows whether income tax calculation declared by you is matching as that by IT department and if any refund/demand is payable. It is intimation under section 143(1).
You can call and ask agent to send you return copy by post/courier.
Where return was filed, only agent will be able to tell and assessing officer sits on IT office under which jurisdiction you come, check you jurisdiction here: https://incometaxindiaefiling.gov.in/portal/common.do?screen=jurisdiction
I uploaded the xml and later realized that I did not click on Createbarcode. What is best way of correcting it.
@Gangesh
There is no need to generate barcode, It automatically comes in ITR-V file.
Thank you.I got the acknowledgement today and Barcode is there.
Hi Pankaj,
Your site is very interesting.I have one question.
My income is less than 5 lacks for 2010-2011.So is it mandatory to file the IT returns.If so, do i need to do before July 31st only?
And my husband paid tax greater than what he needs to pay for 2010-2011.So for him also is it mandatory to pay before July 31st only.Will there be any fine if we file after July 31st.Please answer me ASAP as there is less gap for July 31st.
@Rajyalaxmi
Individuals having total income up to Rs.5,00,000 for FY 2010-11, after allowable deductions, consisting of salary from a single employer and interest income from deposits in a saving bank account up to Rs.10,000 are not required to file their income tax return. Such individuals must report their Permanent Account Number (PAN) and the entire income from bank interest to their employer, pay the entire tax by way of deduction of tax at source, and obtain a certificate of tax deduction in Form No.16.
If above is your case, you need not to file income tax return.
Persons receiving salary from more than one employer, having income from sources other than salary and interest income from a savings bank account, or having refund claims shall not be covered under the scheme.
If your husband needs refund, he should file income tax return before 31st July only. In case one does not have any more tax pending to be paid, or have no refund may file before end of assessment year (31st March) without any penalty.
Hi Pankaj,
There is a recent notification from Govt that, people do not have to file income tax return if the taxable income is less than 5lks.
I wish to take a home loan this year & my taxable income is less than 5lk. Don't I have to file ITR actually? Would the bank release loan for me with my form-16 only?
Please suggest..
Thanks,
Pranab Biswal
Gurgaon, India
@Pranab
As per new Govt rules, People with less income than 5 lacs (from one employer only and bank interest less than 10,000) may skip filing income tax return.
But you may still file it in case you want to avail home loan in near future as bank may ask for last 2-3 years ITR copy along with form-16.
Hi Pankaj,
I have uploaded the xml and later realized that by mistake I have filled wrong information, now how to re-submit the correct XML.I have tried with revised option in excel but during uploading it is throwing error revised only can fill under143(1). Now how to re-submit the correct XML.
@Amit
You can file a revised return by filling same excel sheet ITR and generating XML.
You will have to choose return type as revised and section for filing as 139(5) in excel.
Hi Pankaj,
I have choose return type as revised and section for filing as 139(5) in excel, the XML uploaded successfully.
Thanks a lot for your valuable support.
Amit