September 16, 2008

Individuals- How to file your Income Tax Returns Electronically?

E filing of income tax returns has been made mandatory by the Income Tax Department in India for companies and for firms who need to get their accounts audited u/s 44AB of the Income Tax Act, 1961. However, the option is available to other classes tax payers also.
E filing is also becoming quite popular among the salaried class who can easily prepare their return based on their salary certificate (Form No. 16) provided by their employer. Below are simple steps to be followed to prepare and e-file the income tax return for salaried people.
  1. Choose the right form- Salaried people, who have income only from salary and interest can file ITR-1, others should file ITR-2. However if also have income from business sources, you need to file ITR-3 or ITR-4 which require some detailed information too. More help on choosing the form.

  2. Once you have chosen your form, download it from the Income Tax India website and fill up the details.

  3. After you have filled up all the details, click the 'validate file' button to check for any inconsistencies/errors. After validating your file click the 'generate' button to create the xml file. Save the xml file elsewhere.

  4. Register yourself with the Income Tax Department. This is similar to creating an email id but you need to provide information that matches as that of Income Tax Department database prepared from your PAN (Permanent Account Number) application. Your user id will be your PAN.

  5. Login to your account, give the path of xml file that you have saved, sign it with your digital signatures and upload your return.

  6. Those who don't have digital signatures, can upload the e-return without them but they would additionally need to submit a hard copy of the return to the Income Tax Department.

Practically, e filing of income tax returns is only advantageous when you have digital signatures. Otherwise it doesn't make much sense to first e-file your return and then go to the income tax office to file it again.

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1 comment:

  1. incridible nikhil bhai

    your goal sky and target to catch star

    plz keep it up


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