Benefits of E-Filling Income Tax Returns


Filling Income Tax Returns (ITR) is compulsory for every individual, company and organization. By way of E-Filling you can do away with standing in long queues and file your returns online. Here are advantages and disadvantages of filling Income Tax Returns online.

The e-filling of ITR is preparation of Income Tax Return online using software. Many private companies authorized by Income Tax Department of Government of India as well as official government website allow you to prepare and file Income Tax Return (ITR) online. Check out the official website for additional information on e-filing ITR.

There are two methods of ITR Preparation for E-Filling:


Manual Preparation of ITR: In this method a person needs to calculate Income Tax and Refund etc by self. E-Filling software does not help in preparing final calculations. You need to use your own knowledge. Also you need to generate output in XML or Non-XML format, in case of the later, the file will be converted into XML and then uploaded to the Income Tax Website.

Auto Calculation: In this method you enter the data in the software in the desired field; further inbuilt software program calculates income tax and refunds amount etc automatically. You can file your ITR with click of a mouse and no need to download and upload files.

Which method one should use is completely an individual's choice. If a person thinks software may understand certain fields as otherwise he / she can chose to e-file Income Return (ITR) manually. Otherwise, he / she can use Auto Calculation and e-file ITR.

Following are the benefits of e-filling ITR


Online services like HamaraTax, H & R Block, ClearTax etc gives several advantages over the manual processing of ITR. Check out the income tax efiling using HamaraTax.

Quick Processing: Processing of ITR and Return is truly fast when compared to paper based filling.

Accurate: There are fewer chances for human errors. Even when you file Income Tax Return using paper based filing your data is converted into electronic format by human hands. Department of Income Tax has massive load of handling such paper work. Human Error may occur. While, when you do it online before hitting to final submit button you check and cross check your data. Thus e-filling lessens the chances of errors.

Flexible: E-filling is possible 24*7 any time, any where and even on the go. You save loads of time and energy for other important tasks during the day. This also eases some burden from Income Tax Office and Officers can look for some really serious tasks instead of accepting forms and processing receipts.

E-Filling is secure: In paper based filling your data travels from office to office. Your information is at higher risk. In E-Filling, you enter data in your machine using software program. The information entered travels in encrypted format from your computer to Income Tax Department Servers. There are no human hands involved.

E-Filling is Green: As you know paper is made of pulp. Our environment is already short of green trees we need to protect it. E-Filling ITR is environmentally friendly.

Pay at ease: You can pay your due taxes sitting at home using Debit Card, Credit Card or Net banking. No need to issue a Check or make a Demand Draft.

Instant confirmation: The software generated confirmations of e-filling which you can save in your machine or take a printout of it. Also you a get confirmation in your email registered with E-Filling website.

It costs less: E-Filling ITR is free using Income Tax Department (ITD) Official Website. Private vendors authorized with ITD for preparing and e-filling ITR also provide free e-filling services. If your ITR is complicated you can take consultation of a CA from the same vendor for small amount of fees.

Disadvantage of e-filling tax returns


There are no particular disadvantages of E-Filling ITR to people who know how to use computer and work with Internet. However, E-Filling is not for the people who are not computer literate. Such people can go for traditional method of paper based filling.

The data travels from your computer to ITD server in encrypted mode; nobody can see your information in between. Is your computer secure? If your machine is prone to theft or you do not know how to safeguard your data in home and office PCs, then E-Filling is not for you.


Related Articles

How to correct mistakes in online tax returns

Learn how to file an online request for rectification of errors as apparent in the income tax records, under section 154 of the Income Tax Act, as well as the provisions available for rectification under the Act.

How to do Advance Tax e-payment online

Want to pay your advance tax online? This article provides the step by step procedure to paying your advance tax online at the IT Department official e-payment website.

Best websites to e-file income tax returns

Filling Income Tax Return is compulsory for individuals and business before prescribed date as set by Department of Income Tax, Government of India. E-File your taxes hassle free, now no need to wait in long queues. Here are top websites to E-File Income Tax Returns (ITR)

How to file taxes online in India

Filing Income Tax Return (ITR) is mandatory to every citizen paying taxes in India. The Income Tax (IT) Department of Government of India made the cumbersome process easy by accepting tax payment and ITR form online. You can make e-payment of taxes and e-file for ITR. Here is how to How to file taxes online in India

More articles: E File Tax Returns Income Tax Tax Filing

Comments

No responses found. Be the first to comment...


  • Do not include your name, "with regards" etc in the comment. Write detailed comment, relevant to the topic.
  • No HTML formatting and links to other web sites are allowed.
  • This is a strictly moderated site. Absolutely no spam allowed.
  • Name:
    Email: