E-Filing of Income Tax Return in 2010 – Get Your Facts Right
Posted on December 3, 2011 | No Comments
Dhrupad Buch asked:
July is that time of the year when you need to gear up for filing income tax returns. Section 139 (1) of Income Tax Act, 1961 makes it mandatory to file income tax returns by due date. July 31 is the due date of filing ITR for the AY 2010-2011 (FY 2009-2010) for the majority of individual taxpayers.
There are three ways of submitting ITR:
1. Paper Return – It is accepted only for few categories of taxpayers, for all the other taxpayers, E-filing is mandatory
2. Electronic Return without Digital Signature – Transmitting the income tax return data electronically and sending physically signed hard copy of ITR-V (V is for verification and not roman 5), which is sent by IT department through email
3. Electronic Return with Digital Signature – Transmitting the data electronically and signing the return with digital signature
E-filing of ITR has become popular during the past three years due to the convenience and simplicity of filing the returns. When you file your Income Tax Return electronically, there are absolutely no hassles and you save money that you would otherwise pay to the Chartered Accountants for filing your ITR.
E-filing of ITR can be done in two ways:
1. You can take the help of authorized E-Return agencies such as Taxsmile and Taxmanager, among other, that charge fees of the order of Rs. 250 onward plus service tax depending upon the type of package. Registration is free on the sites of all the E-Return Intermediaries and they do not ask you to pay anything upfront until you are ready to upload your ITR. Therefore, there is nothing wrong in checking out e-return agencies websites.
2. You can go for E-filing directly through the website of IT department. Furnishing returns through IT department websites is slightly difficult because the e return agencies offer you a completely interactive method of furnishing the return data making it extremely simple even for a layman to furnish E-Returns.
When you file your returns electronically, you need to pay careful attention to few very important points:
Pick the right form ITR-1 through ITR-4 whichever is applicable to you. Do not delay submission of ITR-V, which must reach ITD-CPC Banglore within thirty days of signing ITR-V. Send ITR-V only by ordinary post. Do not send it by courier, speed post or hand delivery. Alternatively, you can obtain a digital signature and sign your ITR. Getting a digital signature is not as difficult as it may sound. Charges for digital signature vary from 150 upward depending upon the type of signature and period for which you want it. If your ITR-V does not reach the IT department in the stipulated time, your ITR is likely to become invalid and you might have to refile your return. As soon as IT department receives your ITR-V, you will receive an email acknowledging the receipt of your ITR-V, which completes the entire procedure of ITR. You are not required to send any documents, computation sheets, Form 16, Form 16A etc (as was necessary in the past) along with ITR Do not ignore to furnish the details of specific transactions as per AIR (Annual Information Return) Make sure that you have also included the details of exempt income such as PPF interest, interest from tax-free bonds, dividend income from listed stocks and mutual fund units, long term capital gain on stocks and equity oriented units of mutual funds which STT has been paid.
In the End:
When you submit E-Return through agencies, most of the important factors are taken into account leaving no chance for you to make any mistake. You may also check out the website of Income Tax Department for guidelines on Electronic Return Filing and Do’s and Dont’s of Printing and Sending ITR-V
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July is that time of the year when you need to gear up for filing income tax returns. Section 139 (1) of Income Tax Act, 1961 makes it mandatory to file income tax returns by due date. July 31 is the due date of filing ITR for the AY 2010-2011 (FY 2009-2010) for the majority of individual taxpayers.
There are three ways of submitting ITR:
1. Paper Return – It is accepted only for few categories of taxpayers, for all the other taxpayers, E-filing is mandatory
2. Electronic Return without Digital Signature – Transmitting the income tax return data electronically and sending physically signed hard copy of ITR-V (V is for verification and not roman 5), which is sent by IT department through email
3. Electronic Return with Digital Signature – Transmitting the data electronically and signing the return with digital signature
E-filing of ITR has become popular during the past three years due to the convenience and simplicity of filing the returns. When you file your Income Tax Return electronically, there are absolutely no hassles and you save money that you would otherwise pay to the Chartered Accountants for filing your ITR.
E-filing of ITR can be done in two ways:
1. You can take the help of authorized E-Return agencies such as Taxsmile and Taxmanager, among other, that charge fees of the order of Rs. 250 onward plus service tax depending upon the type of package. Registration is free on the sites of all the E-Return Intermediaries and they do not ask you to pay anything upfront until you are ready to upload your ITR. Therefore, there is nothing wrong in checking out e-return agencies websites.
2. You can go for E-filing directly through the website of IT department. Furnishing returns through IT department websites is slightly difficult because the e return agencies offer you a completely interactive method of furnishing the return data making it extremely simple even for a layman to furnish E-Returns.
When you file your returns electronically, you need to pay careful attention to few very important points:
Pick the right form ITR-1 through ITR-4 whichever is applicable to you. Do not delay submission of ITR-V, which must reach ITD-CPC Banglore within thirty days of signing ITR-V. Send ITR-V only by ordinary post. Do not send it by courier, speed post or hand delivery. Alternatively, you can obtain a digital signature and sign your ITR. Getting a digital signature is not as difficult as it may sound. Charges for digital signature vary from 150 upward depending upon the type of signature and period for which you want it. If your ITR-V does not reach the IT department in the stipulated time, your ITR is likely to become invalid and you might have to refile your return. As soon as IT department receives your ITR-V, you will receive an email acknowledging the receipt of your ITR-V, which completes the entire procedure of ITR. You are not required to send any documents, computation sheets, Form 16, Form 16A etc (as was necessary in the past) along with ITR Do not ignore to furnish the details of specific transactions as per AIR (Annual Information Return) Make sure that you have also included the details of exempt income such as PPF interest, interest from tax-free bonds, dividend income from listed stocks and mutual fund units, long term capital gain on stocks and equity oriented units of mutual funds which STT has been paid.
In the End:
When you submit E-Return through agencies, most of the important factors are taken into account leaving no chance for you to make any mistake. You may also check out the website of Income Tax Department for guidelines on Electronic Return Filing and Do’s and Dont’s of Printing and Sending ITR-V
Create a video blog…instantly.