Why wait for July-end deadline? File your I-T returns online now
June, 26th 2012
The deadline for tax filing is just a month away. And filing returns online seems to be the way to go this year for individuals who earn more than 10 lakh. Now these individuals don't have the option of filing tax returns offline through a tax consultant or chartered accountant anymore.
The Central Board of Direct Taxes (CBDT) has issued a notification in March making it mandatory for individuals with annual income of more than 10 lakh to file their returns online from the current financial year. The new notification is applicable to individuals and Hindu Undivided Family (HUF) taxpayers, too.
"It is now mandatory for individuals with total income above 10 lakh to file their personal tax returns online through the income tax website," says Vineet Agarwal, director, KPMG. "Further, resident individuals with assets abroad (including authority to sign a bank account held abroad) are compulsorily required to file their return electronically for AY 2012-13 and for subsequent assessment years as well," says Vaibhav Sankla, director-business development and tax training, H&R Block India.
Though many individuals may be a bit apprehensive about filing returns online because of security and connectivity issues, online tax filing could actually be a blessing. It means you have the option of filing the returns on any day and from any location.
Tax payers have an option to file their tax returns through incometaxindiaefiling.gov.in, the tax portal run by the Income Tax Department. You don't have to pay anything to file returns through this site. There are also several private players who charge anywhere between 180 to 1,500 for filing returns online.
A basic document check before starting the filing process could be helpful. "For salaried individuals, Form 16 is a crucial document.
Secondly, if you have taken any housing loan, you should have the bank statement which mentions the exact amount of interest paid in a financial year," says Saakar S Yadav, managing director, myitreturn.com, a tax portal. "If you are filing for HRA, you would need the rent receipts," he adds.
Self-employed individuals need a profit or loss statement in case they run a strategic business unit in which they remunerate themselves through a profit sharing model. "In case self-employed individuals follow a salary model in their own company, they require Form 16 A to file their returns online," says Saakar S Yadav.
Steps for e-filing
First, register your personal details to choose a login ID. At this stage the portal will take you to the next stage to complete the registration process.
Second, enter the income particulars in ITR software tool, which would generate the ITR form in electronic format (XML file). You have to upload the Form 16, enter other details on TDS, housing loan if any, particulars of tax investments, and so on.
Three, as you finish the process, a copy of your XML file will be sent to your email address. It will tell you if you are eligible for a tax refund or you are liable to pay taxes.