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 the 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 choose 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 the 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 a massive load of handling such paperwork. 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, anywhere 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 into your machine using software program. The information entered travels in an encrypted format from your computer to Income Tax Department Servers. There are no human hands involved.

E-Filling is Green: As you know the 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 a few fees.

Disadvantage of e-filling tax returns

There are no particular disadvantages of E-Filling ITR to people who know how to use the computer and work with the Internet. However, E-Filling is not for the people who are not computer literate. Such people can go for the 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 the home and office PCs, then E-Filling is not for you.

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