The Central Board of Direct Taxes (CBDT) has recently issued a notification which has made it mandatory for individuals earning an annual income in above INR 10 lakhs to file their Income Tax Returns online from the current Financial Year 2011-12 (Assessment Year 2012-13) onwards. This new notification is applicable to individuals and Hindu Undivided Family (HUF) taxpayers as well. E-filing for such individuals was optional till Financial Year 2010-11 (AY 2011-12).
For individuals in upto INR 10 lakh bracket, there has not been any change in tax filing; they have the option of filing returns either manually or electronically.
Although e-filing has been made mandatory for such individuals having total income above INR 10 lakh per annum, it is not mandatory to use digital signature.
This step by the Central Government can be seen as a pilot run for making online filing of ITR mandatory for all taxpayers. E-filing is hassle-free and will also help in preventing delay in getting back refunds (if any) as all online filed ITRs are processed on priority basis at the IT Department's Centralized Processing Centre (CPC) at Bangalore. The government too can save on the interest amount paid out to taxpayers eligible for refunds.
Why Online Filing?
Online filing is not only the simplest way to file your ITR, but refunds are also issued faster on for electronically filed Returns.
Some of the common myths on online filing are summarized below:
Myth-1: Need Digital signature for e-filing the income tax return.
Digital signature is not mandatory for individuals earning income of upto INR 100 lakhs per annum. You also don’t need one if you e-file your return and then post a signed ITR V form to the CPC, Bangalore.
Myth-2: More chances of scrutiny for the electronically filed returns.
This is purely a fictitious assumption. Every year income tax department pulls out random list of people to scrutinize. Whether the person has filed income tax returns electronically or through traditional paper filing method have no bearing on this list. In fact, Online Filing can help in automatically tallying Returns Particulars filed by you and that filed by your Employer, Banks and other Financial Institutions.
Myth-3: E-filing cost while physical return doesn’t cost anything.
E-filing through the government site and www.taxyogi.com is absolutely FREE.
Myth-4: One cannot revise the return if filed electronically.
E-filed returns can be revised in the same way as those filed in any other manner. www.taxyogi.com allows you to file revised tax return for current FY 2011-12 (AY 2012-13).
Myth-5: E-filing is unsafe.
All registered e-filing portals send the tax returns uploaded by assesses to the Income Tax Department. The government website uses the latest software to make it fully secure. For example, www.taxyogi.com uses 128-bit encryption to transmit data. There is very little or no chance of it being hacked.
Click here to check out how to do Online Filing – as easy as counting 1-2-3!
Click here for DEMO VIDEO on how to do Online Filing of ITR
Click here to check out the PROCESS CHART on how to do Online Filing at TaxYogi.com!
Priya Rao, InvestmentYogi
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