Saturday, June 23, 2012


Income tax e-filing

The countdown has started. You have a little more than a month to complete the annual ritual of filing income-tax returns
e-filinG I-T returns
Most taxpayers opt to filing of returns online — e-filing — as it is easier than the offline option.
Mandatory: The CBDT has made it mandatory for individuals earning an annual income in excess of Rs 10 lakh to file their returns online from this current financial year.
Where to file e-returns
You can file your returns through the official website incometaxindiaefiling.gov.in. Else, you can use several tax portals run by private players, which charge anywhere between Rs 180 and Rs 1,500 for this service.
Using private portals
Cost should not be the only factor that makes you zero-in on a portal. You also have to ensure that the e-filing portals are trustworrthy, as you would be parting with your personal details. Check if the private portal that you are planning to use is backed by a strong corporate and whether it is a licensed e-return intermediary.
Ensure that the portal is a secure site, which uses encrypption to protect your personal data. The URL in the address bar of the secure site starts with ‘https://’ and not just ‘http://’.
Using the official portal
If you are using the official income-tax portal incometaxindiaefiling.gov.in, you need to do the following process:
* Select an appropriate ITR Form
* Register and create a user id and password, if you don’t have one. You need to login, if you are already registered.
* Download return preparation software for selected return form
* Fill your return offline and generate a XML file
* Login and pick the relevant form on left panel. Use the submit return option to select XML file and click on upload button.
* After successful upload, take the print out of acknowledgment ITR-V Form, affix your signature and send it to CPC on the address given on the form.
* If you have used a digital signature to authenticate the form, your filing process is complete.
Who need to file
If your taxable earning is more than the exempted income. The threshold is Rs 1.8 lakh for males, Rs 1.9 lakh for females and Rs 2.5 lakh for senior citizens if you want to claim refund of tax already deducted from income.
I have only salary income...
In the previous year, people having only salary income of less than Rs 5 lakh were exempted from filing returns. But this is rule is yet to be reiterated for this year.

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