E-Filing of IT Returns - salaried Employees An Overview of the Process of e-Filing of Returns

About E-Filing The process of electronically filing Income tax returns through the internet is known as e-Filing. Filing of Income tax returns is governed by section 139 of the Income tax Act. Filing of returns is mandatory for persons having annual salary above Rs.5 Lakhs and E-filing of returns is mandatory for persons having annual salary above Rs.10 Lakhs. e-filing is possible with or without digital signature. The total number of returns submitted by way of E-filing for FY is 16.5 million. Maharashtra stood topmost and Karnataka stood fifth.

Benefits of E-filing Online tax returns are processed faster than paper return. Tax payers get their refund, if due quickly. The utility provided for filing returns is user-friendly. Tax is computed automatically as the form is completed. E-filing can be made anywhere and at anytime within the deadline prescribed for filing returns. Acknowledgement slip is received immediately. Processing of return can be monitored.

Benefits of filing To Conquer the legal consequences, the filing of Income Tax Return is mandatory. It authenticate the proof of income and Creation of net worth which facilitate for processing of loans and financial arrangements. It is mandatory requirement for VISA processing and other foreign transactions. Facilitates in registration of immovable properties.

E-Filing Process – At a glance Visit Income Tax Dept. web site – Select appropriate type of Return Form i.e. ITR 1 Download Return Preparation Software for selected Return Form. Fill your return offline and generate a XML file. Register and create a user id/password Login and click on relevant form on left panel and select "Submit Return" Browse to select XML file and click on "Upload" button On successful upload acknowledgement details would be displayed. Click on "Print" to generate printout of acknowledgement/ITR-V Form.

Digital Signature A digital signature authenticates electronic documents in a similar manner a handwritten signature authenticates printed documents. A digital signature is issued by a Certification Authority (CA) It is typically issued with one year validity or two year validity It is signed with the CA's private key. A digital signature typically contains the:  Owner's public key  the Owner's name  Expiration date of the public key  the Name of the issuer (the CA that issued the Digital ID)  Serial number of the digital signature and  the digital signature of the issuer.

Benefits of Digital Signature A digital signature ensures the security and authenticity of the documents filed electronically. The processing of IT returns starts the very minute the return is submitted. This signature cannot be forged and hence thereby the signer of a document cannot later disown it by claiming that the signature was forged The recipient of a digitally signed message can verify that the message originated from the person whose signature is attached to the document and that the message has not been altered either intentionally or accidentally since it was signed. Digital signatures enable the “authentication” of digital messages assuring the recipient of a digital message of both the identity of the sender and the integrity of the message.

Time for filing of return A person whose accounts are required to be audited. September 30 A person whose accounts are not required to be audited. July 31 In case the return was not filed within above mentioned time, the Assessee can file belated return i.e. within one year from the end of the relevant assessment year. (Section 139 (4)). March 31

Revised Return u/s 139 (5) A revised return can be filed in the case of: - A return filed under section 139 (1) i.e. voluntary return A return filed in pursuance of a notice under section 142 To correct any omission / wrong statement (not applicable in case of concealment or false statement). If filed within one year from the end of the assessment year or before completion of assessment whichever is earlier. A belated return filed under section 139 (4) cannot be revised.

Consequences of non-filing of IT Returns Non filing of return is a serious offence and will Attract Legal Proceedings. PENALTY of Rs. 5000/- under section 271F will be levied for non filing of returns. Penal Interest under section 234A will be levied on Late Filing of IT Return. Few losses cannot be carried forward such as Business loss, capital loss and loss from the activity of owning and maintaining horse races.

Interest for defaults in furnishing Return of Income [Section 234A] If any person fails to furnish his return of income u/s 139 for any assessment year or furnishes such return after due date specified in section 139(1), then, he will liable to pay interest at the rate of 1% per month for the period beginning from the date immediately following the due date of furnishing return of income and ending on the Date of furnishing the return or completion of assessment, whichever is earlier calculated on the amount of self-assessment tax payable.

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