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OVERVIEW



Income tax is a tax on income charged annually. Under section 4 of the Indian Income Tax Act, it talks about the total income of the previous year of every person. The tax on income-tax shall be charged for the corresponding assessment year. The rates are laid down by the Finance Act for that assessment year. Talking Section 14 of the Income Tax Act, is for the charge of income tax and computation of total income. Generally, all the income of people be classified under this heads of income such as the salary, income that are gained from the house property, any amount of profits and gains collected from business or any profession, gain in form of capital gains and income from other sources are covered in it. The amount of total income gained from all the above-mentioned heads of income is calculated per the provisions of the Act. While talking about the responsibilities of the Income Tax Department, they are responsible for all activities related to the taxation process it is governed by the Central Board for Direct Taxes.

They are part of the Department of Revenue under the Ministry of Finance, Government of India (GOI).

The department of Income Tax has made a system that makes the process of filing income tax returns (ITRs) easier for taxpayers. This has reduced the time for data entry at their end on receipt of the ITRs. The most viable solution to this was the electronically filing of ITRs. By this facility, taxpayers would be benefited but the department had to create an environment where the users feel secure about filing/her ITRs online without any issue of security. Electronic filings helped to furnish ITRs through authorized intermediaries known as “e-Return Intermediaries” or electronic return intermediaries. The Response time for processing of the ITRs and for claiming a refund has dropped very significantly. The double effort in duplication was eliminated since data was entered by intermediaries. As it was already available in the system for taking in reference any time when in use. There is no requirement of being present physically during the online process for filing their ITRs.


Know which ITR you have to file?



Form: ITR-1

This form is basically for individuals who are residents of India having total income up to Rs.50 lakh, who are having Income from Salaries, or from the house property, or from any other sources and having agricultural income up to Rs.5 thousand comes under the category.


Form: ITR-2

This form is for Individuals and HUFs not having income from profits and gains of business or profession, they come under this.

Form: ITR-3

This form is for those individuals and HUFs who are having income from profits and gains of business or profession comes under this.

Form: ITR-4

This form is for Individuals, HUFs, and Firms but not LLP, who is a resident of the country and have total income up to Rs.50 lakh. Having income from business and profession which comes under sections 44AD, 44ADA, or 44AE.

Form: ITR-5

This form is for persons other than these-

(i) Individual,

(ii) HUF,

(iii) Company and

(iv) Person filing Form ITR-7

Form: ITR-6

This form is for Companies other than companies claiming exemption under section 11 of the Act.

Form No. : ITR-7

This form is for persons including companies who furnish returns under sections 139(4A) or 139(4B) or 139(4C) or 139(4D) only and no other than that.


What are e-fillings? :


The process of Electronic Filing of Return is the process of submitting tax returns over the Internet. Using e-filling tax preparation software that has been pre-approved is usually done while filing without the need to submit any paper documents. Electronic filing is the process of sending your ITR with the help of tax software by an online medium to the tax authority. This medium has reduced our time and effort as nobody has to stand in long queues to file income tax returns and get your tax filed. There are authorized customized return forms available on the site of the Department of Income Tax, all these forms have been made in such a way that the taxpayers don’t need to file any supporting document. This way return is submitted electronically at the site only.

This new system of E-Filing facility was introduced by the Income Tax Department for the first time in the year 2006- 2007. According to the notification by the Central Board of Direct Taxes has vided notification No. 34/2013 that is dated 01.05.2013 has made it mandatory to file Income Tax Return

Online from A.Y. 2013-14 for the following category:-

(a) A person whose total income exceeds INR. 5, 00,000 then it is mandatory for them to e-file the return of income. It is not being a company or a person filing a return in ITR 7.

(b) In the case of Hindu undivided family or individual who is a resident of India, having assets located outside India or signing authority in any account located outside India. So they are required to furnish the return in Form ITR-2 or ITR-3 or ITR-4, according to their case.

(c) Those who will claim tax relief under Section 90, 90A, or 91 shall file returns in the electronic form.

(d) Under Section 44AB talks about who is required to get their Account

(e) Any firm that furnishes the return is required to do it in Form ITR-5. In case of an individual or Hindu Undivided Family (HUF) have to furnish their return in Form ITR-4 and to whom section 44AB provisions are applicable.

(f) A company is required to furnish their return in Form ITR-6.


How to File Income Tax Return Online?


In India, the income-tax department has started its portal for e-filing tax returns. One has to copy and paste this link www.incometaxindiaefiling.gov.in. According to the procedure, tax returns can be filed online with or without a digital signature. One who is e-filing returns without a digital signature needs to get a copy of form ITR-V then sign it and have to send it by speed post within a specified period of 120 days to the given address (Income Tax Department – CPC, Post Bag No. 1, Electronic City Post Office, Bengaluru–560100, Karnataka). When filing the returns with digital signatures then you need to send a copy of form ITR-V by speed post.


Advantages of E-Filing:


1. Fast processing - The ITR is a quick process. In the case of refunds more importantly process is faster than paper-filed returns.

2. More accurate - In E-filing electronic connectivity is seamless and it minimizes the level of errors. In the case of paper-filings, it can lead to errors without warning.

3. Very Convenient –There is no bar on time and place for filing returns online. It is an user-friendly process available 24/7 and you can file anytime, anywhere according to need and your convenience.

4. Confidential in nature -It provides better security and confidentiality than the usual paper filing method. It protects your data and is not accessible to anyone at any chance. Paper filings is full of risk, details of your income can fall in the wrong hands by mistake at your chartered accountant’s office or in the Income Tax Department’s office.

5. Can retrieve past data - It is very simple to access past data while filing your returns. In the case of e-filing applications, they store data in a secured manner. It allows easy access at the time of filing subsequent returns.

6. Proof of confirmation -While filing one gets the confirmation, both at the time of filing and subsequently. Confirmation is via email on your registered email id.

7. User friendly - E-filing is very convenient and friendly, it is easy for those individuals also who are not very friendly with the internet.


CONCLUSION



With globalization, E-Return filing is getting popular day by day in our country. It makes the citizens more independent and they can file their return anytime from anywhere. It has reduced physical space, data accuracy, fastest processing, etc. Benefits come with many challenges risks of security. It is the major issue as it includes confidentiality of data received through E-Return. With the modernization, the Income-tax department has given their best to aware people of E-fillings but still, there is a need to promote e-filing so that the people become more aware of this new thing.