Benefits of Filing Income Tax Returns Online
The tax that is levied on the earnings of individuals, businesses, corporations or other legal entities is referred to as Income Tax. The types of payments that fall under the tax bracket like capital gains, business incomes and personal income or wages are called “Tax Net”.
There is no universal tax rate fixed for all incomes. It varies across different sectors and sections and there maybe few incomes that do not fall under the tax bracket at all. Primarily we deal with two types of taxes namely Direct Taxes and Indirect Taxes. Direct Taxes are those whose liability is directly borne by the tax payer for example income tax where as the liability of indirect taxes like VAT etc can be slipped on to a third party.
The Income Tax Act 1961 states that all those assesses whose total income exceeds the prescribed bracket of exemption will be charged with income tax. It is important to know that the residential status of the individual also plays a pivotal role in determining the total income of an individual.
Meaning of Income Tax Returns – If you fall under the taxation bracket then you would have to provide a declaration to the Income Tax Department about the earnings you have made with permitted deductions and exemptions that computes your tax liability in a format that is pre-defined by the Government at the end of every financial year.
This also includes royalties on which no tax has been deducted, interest on your savings bank account, earnings from part-time work, dividends, fees, rent etc which have not been taxed or maybe a part or portion of which has been taxed. These statements signed and affirmed by you revealing the correct picture of your income during the previous financial year are collected by the Government. This is known as Income Tax Return or Return of Income.
Benefits of Filing Tax Return Online
- While you file your returns online, the calculations are done automatically thus you are relieved from the hassle of calculations and confusions. You get to know that very moment what money you owe or what would come back to you. Obviously, its accuracy can not be questioned.
- It is easier, convenient and time saving. The money that is owed to you reaches you within weeks whereas if you go by the traditional method it takes time.
- The moment you click the submit icon, you receive the acknowledge slip
- Those of you who wish to save yourself from the plethora of paperwork, filing income tax returns online is a boon.
- Another benefit of filing tax return online is that you do not have to wait in long queues nor have to pay an agent who can stand on your behalf for hours in the office in order to file your returns.
- Online tax returns have broken the notion that government offices have specific fixed hours of working. You may file your returns at any time in day or night.
- As it becomes more easily accessible, filing returns online also gives you an advantage of checking the status of your refund.
How to File Income Tax Returns Online
Electronic Filing or E-Filing is referred to the process of filing your tax returns online. Follow the following steps for filing tax returns online.
- The very first thing that you ought to do is to sign up as a new user by visiting the official website of Income Tax of India.
- While you sign up as a new user you will be asked to give out your PAN Number and other details. Once you fill in the form click on the button that says “Register”.
- Once you get registered you will be taken to a form that shows your address, the one that you have given for your PAN card. You need to update your telephone number, e-mail, create your password and click “Submit”.
- You will now be turned to the e-filing links for your tax returns for the assessment year. Now you are required to click on the link for the assessment year and choose your category. For example, if you are the one only with salaried income then download only ITR-1.
- Along with that also download the excel utility which is like an excel sheet in which you will fill in the required data and you need to save that on your system.
- Once through with this, upload the excel sheet and press “Submit Return”.
- Once through with this, you will see that an acknowledgement slip pops up on your screen. You will have to take a print out of the same, verify and sign it and post it to your local income tax office.
- Make sure that the acknowledgement receipt reaches your local income tax office within 15 days since you have filled in the form online failing which you will be required to go through the same process again.
- For all the tech-savvy people out there, digital signatures can also be used if you wish to eliminate even the slightest paper work.
Filing Tax Return has become all the more convenient, accurate, paperless, time-saving and secured since the time it has become just a click away. However, while you turn to filing income tax returns online make sure that you cross check your address on the form, your return is being mailed to the right server. All pages should bear your Name and other credentials on front as well as back.
Having done that, you can enjoy the luxury of filing your income tax returns online from anywhere at anytime.
Contributed By: Megha Sharma |
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Megha Sharma works as a guest lecturer in Delhi. She holds an MBA & Doctorate from the UPTU. With extensive knowledge and experience in various financial products, she also works as a consultant in banking & finance domains wherein she offers advice to her clients in managing personal finance. | |
