<p><em>No matter how much technicalities are involved, filing of income tax returns online has emerged as a better option and has started picking up pace owing to the dawn of numerous e-return filing websites as intermediaries, writes <strong>Vikram Ramchand</strong></em><br><br>As soon as we head towards the year end, banks, chartered accountants and e-returns intermediaries (ERIs) start reminding us of filing taxes online. All of a sudden, we get to witness an increasing number of taxpayers flocking to file their e-returns because of the convenience it offers. However, it is not just a matter of convenience here.<br><br>With a motive to ease the taxpayers' compliance norms, the Income Tax department introduced the e-filing of I-T returns, which was gradually made mandatory by the Central Board of Direct Taxes for individuals earning over Rs five lakhs per annum from the assessment year 2013-14 onwards. Additionally, those who e-file get the advantage of receiving their tax refunds earlier than the others. The standardized price for this service, when compared to the different prices charged by chartered accountants, makes it the most preferred way of filing returns. In spite of all these benefits, however, many of us are still skeptical and feel hesitant about e-filing our IT returns fearing it might get rejected. This reluctance usually stems from the fact that the concept is still quite novel in the Indian context.<br><br>Many taxpayers avoid e-filing solely based on the fear that they may commit a mistake in their tax return for which they might get penalised heavily. The Income Tax department can reject your income tax return for a wide range of reasons, but don't let this intimidate you. It means a taxpayer would need to figure out what went wrong and try again. There are certain guidelines laid down by the income tax department. If a taxpayer abides by these guidelines and follows the tips, they would be able to avoid unnecessary e-file rejections:<br><br><strong>1. </strong> If taxpayers have an outstanding tax liability, make sure they pay it and enter the details of the self-assessment tax in their income tax return before submitting the tax return.<br><strong>2. </strong> Printing the ITR V form correctly is an important step. To make sure that the print quality of the paper on which ITR-V acknowledgement is good and clear, avoid using the dot matrix printer if you want your return to be processed faster. This is because the bar code on the ITR V should be clearly visible for quicker processing, and only using the ink jet or laser printers can do this.<br><strong>3. </strong> Don't forget to sign the ITR-V before sending it to the CPC in Bangalore. The signature must be clear and legible. Also, if you are taking photocopies, make sure you send out an original one signed in blue ink. As per the guidelines issued by the Income Tax Department, the ITR V should carry the signature in ink and should not be a photocopy of the signature.<br><strong>4. </strong> Don't send the ITR-V in any other mode other than Ordinary or Speed post.<br><strong>5</strong>. For a taxpayer, it is necessary to make sure that he/she is sending a signed copy of their ITR-V acknowledgement within 120 days from the date of filing the income tax return.<br><strong>6.</strong> First, check the Permanent Account Number (PAN) given in the Income Tax Return Verification (ITR-V) form. A wrong PAN number would mean your return shows in someone else's name.<br><strong>7. </strong> Reconciliation with Form 26AS is very critical as TDS details are the lifeline of a taxpayer's income tax return. Any mismatch in the details provided in Income Tax Return and Form 26AS may invite notice from the income tax department or lead to the refund getting rejected.<br><strong>8. </strong> If taxpayers have a loss under the head "Profits and Gains from Business and Profession", they cannot file income tax returns without getting their books of accounts audited by a practicing Chartered Accountant.<br><br>No matter how much technicalities are involved, filing of income tax returns online has emerged as a better option and has started picking up pace owing to the dawn of numerous e-return filing websites as intermediaries. Blame it all on the existence of improper planning and ignorance of the guidelines that acts as a hurdle in this otherwise hassle-free and effortless procedure of filing tax returns. Undoubtedly, there is nothing more convenient than filing returns electronically. To be on the safer side, besides adhering to these tips, don't forget to mark the calendar on 31st August to file your Income Tax before this date because as a responsible citizen, paying our taxes & filing Income Tax Return on time must top our priority list during every assessment year.<br><br><em>The author is co-founder & CIO, Makemyreturns.com</em></p>
_20241003152432_original_image_28.webp)