7/27/2019 How to File Tax Return

1/2

The department website also allows users to rectify returns, view old returns and checkstatus of refunds.

July 18, 2013:Come July, what is on top of our minds is tax return filing.

Most of us might have experienced hardships in manual preparation and verification of returns,visiting the tax office, identifying the jurisdiction and spending time in long queues when filing thereturns in paper form. On the contrary, e-filing is really a boon, as the benefits range from avoidinglong queues to file returns to quick processing of the tax returns to speedy refunds. But the catch isthat you need to focus on a few things while filing the tax return electronically. Otherwise, you willend up wasting time with added woe to set things right later on. Here is a guide to e-filing returnsthrough the Income-Tax Departments Web site.

What you should do

Ensure that appropriate ITR Form is used, which is available for download in the Income-tax e-Filing website https://incometaxindiaefiling.gov.in. For example, ITR 1 is to be used in case anindividual has income from salary, house property and other sources whereas ITR 2 is applicable forthose having income from all other sources except income from business or profession.

Also, fill in your correct contact details (address, email and telephone number) in the income-taxreturn, to ensure appropriate communication from the Tax Department. Make sure that the bankaccount number and MICR code (the 9 digit number found at the bottom of the cheque leaves) isentered correctly, in order to facilitate refund credits.

Verify the tax credits as reflected in the Form 26AS (available for download in the same website).Form 26AS is a consolidated tax statement which includes details of tax deducted at source, advancetax, self assessment tax etc deposited by the taxpayer. You must identify any mismatch in the taxcredits against the Form 16 / Form 16A (TDS certificates) issued, to take up the matter with the

deductor (employer / banker) on time.

Steps to Filing return

As a prerequisite, you should get registered at www.incometaxindiaefiling.gov.in using PAN andother personal and contact details. On receipt of activation link and by successfully activating it, youare ready for e-filing of the tax return.

In this context, it is also beneficial to understand XML files and Digital signature . XML file is a fileformat which is generated for uploading a tax return, which can be understood both by the taxpayerand the computer. Whereas, digital signature is a method by which authentication is doneelectronically instead of physical signature.

The following steps should be taken for e-filing of the tax return. First, select the appropriate ITRForm and download the same. Fill the ITR Form offline and save the XML file generated by theForm.

Then, register your PAN in the income-tax website by getting a username (the PAN itself ) and apassword (of your choice). Log in and click the relevant form on the left panel and select "SubmitReturn". After this, upload the XML file and print the acknowledgement/ ITR-V Form. If you wish to

7/27/2019 How to File Tax Return

2/2

use a digital signature to sign the return, then the process is over. If not, you need to sign and file theacknowledgement with the Central Processing Centre (CPC) of the Income-tax Department within120 days of uploading the return. Once the CPC receives the physical copy of the signed ITR-V form,an acknowledgement will be sent by email.

The income tax department has upgraded its e-filing website with additional features. With a user-

friendly interface and enhanced features, the website allows taxpayers to submit tax returns, requestfor rectification of returns, view old tax returns and their acknowledgements as well as demand andcheck the status of tax refunds. Though the process of e-filing may appear to be little complicated, bypaying a little attention to above, one can reap the benefits of e-filing!

What you should not do

Do not miss to file your returns on time. Delay in filing the tax return has certain unfavourableconsequences as you would lose your entitlement to carry forward losses to subsequent years (exceptloss from house property). Also, you lose the benefit of being able to revise the return in case of anerror or omission discovered later. Lastly, it could also be a costly affair as there is an interest chargeat the rate of 1 per cent of outstanding taxes, per month of delay in filing the returns.

Do not forget to send the signed ITR V, after uploading your tax return on the website of the Income-tax department (without digital signature), within 120 days to CPC, else the tax return becomesinvalid as and is as good as not filed.

(The writer is a senior tax professional, EY.)