Electronic filing of tax returns has become compulsory for all corporate assessees and for all individual assessees earning more than Rs. 5 lakhs in a year. Today, a significant proportion of the tax assessees in India have come under the ambit of electronic filing of tax returns.
Electronic filing is a win-win situation for tax payers as well as the government. With smartphones, Internet, and technology becoming a part of our daily lives, the incorporation of technology in an important transaction like filing of tax returns can offer numerous benefits to all the parties involved in the transaction.
Benefits of Income Tax E-filing
a. Less Paperwork
In the past, preparing an income tax return involved a lot of paperwork. The process involved obtaining bank statements, arranging bank account slips, cheque books, and other records, preparing vouchers, and collecting other invoices and documents, and visiting the CAs office with numerous files and documents.
With the option of efiling of income tax, one can simply prepare soft copies of all documents and prepare the tax return on the computer. Combination of emails, video conferencing, and electronic filing means that these formalities can be done with minimum paperwork.
b. More Convenience for the Tax Payer
Tax returns can be filed from the comforts of one’s home or office. No need to worry about the tax office closing for the day. You can simply prepare the return at your convenience and file it online.
Further, you can avoid spending hours standing in line to file the return. You may have to wait a few minutes extra if there is a lot of traffic on the server, but the process will not take as much time as the conventional method of filing returns.
c. Value Added Services
Better integration of multiple agencies allows you to verify all the details of your tax return without any hassles. You can verify your PAN details, check your TDS payments, check status of advance tax payments, and identify the right Ward and Range for your return over the Internet. These services reduce scope of errors in your return.
d. Faster Processing
E-filing of income taxallows the government to process returns faster. This means your tax refunds will be credited to your account faster. Further, e-filing allows you to track the status of your return online. You will receive emails indicating receipt of the return, instances of changes in the return, completion of processing of the return, and intimations about scrutiny automatically in your email inbox.
e. Increased Security
Your tax returns contain detailed information about your personal and business finances. The last thing you want is for this information to land in the hands of unauthorized persons. Security risks were always present in case of physical filing of tax returns as it involved multiple intermediaries.
Income tax India e-filing is safer since you will be in charge of your safety. Have strong password, avoiding disclosing passwords and other details over your phone and have a good antivirus program in your computer to ensure your tax details are kept private at all times.
Apart from greater convenience and safety for the tax payer, e-filing allows the government to enhance the tax base without having to spend more towards processing of tax returns. Online tax filing and computerized processing is an important component towards achieving e-governance in India.
At Make My Returns, we understand your needs and give you complete solutions with few easy clicks. Our specialization includes tax planning, preparation and filing services for individuals, it e filing for salaried employees as well as self-employed, including non-resident Indians (NRIs) and expatriates. Our expert team is well equipped that give you expert assistance in getting your income tax return filing, carefully and hassle free!