E-Filing Facility | Basic Facts about Electronic Filing - Ezybiz India

E-Filing Facility or Electronic Filing

E-Filing Facility or Electronic Filing:

Electronic Filing or E-filing Facility is a process through which the taxpayers can submit or file for their tax returns over the internet. This could be done by using the software for tax preparation pre-approved by the taxation authority like Indian Revenue Services (IRS) in advance. The e-filing facility has multiple advantages and benefits making it a popular mode of tax preparation and filing in the recent years. From the comfort of the office or home, a taxpayer can file the Income Tax Return Filing or other returns, when the authorities are accepting the same, at the convenience of their time and space.

E-Filing Facility

Advantages of E-Filing Facility:

Following are the benefits or advantages of using the e-filing facility or service for both tax authorities and taxpayer-

  • It saves the time and money of the taxation authority as the data of the tax matter is directly transmitted or transferred to the computers of the office of the authority.
  • This also, reduces any possibility of input and keying errors or mistakes, significantly during the filing process.
  • The taxpayers with the help of the E-Filing Facility can directly file their respective returns on the official website of the tax authority or department. The taxpayers can use the IRS Free File service to file returns, in case the gross income for the tax or financial year is adjusted to Rs.50 Lakhs or less.
  • The Indian Revenue Service (IRS) has been partnering with many different companies to provide e-filing facility to the registered taxpayers and businesses in India. There are different types of filing software that taxpayers can use to file returns, as no particular type of software is being endorsed or recommended by the authority. A taxpayer has been given the option of using the tax preparation software for return filing. The taxpayers are allowed to hire a tax professional to carry on the filing process on their behalf.
  • One of the most common benefits of using the e-filing facility is that the filer, always receive a message of confirmation or rejection (whatever the case may be) within 24 hours of filing the returns, to intimate the taxpayer whether their returns have been accepted or not. The confirmation messages is a proof that the documents filed by the taxpayer is relevant and accurate and is under process, whereas the notice of rejection means the information furnished has not been accepted by the IRS.
  • The rejection notice also contains all the information about the corrective measures that the taxpayer is required to complete and follow.
  • The e-filing facility has prompted a process that is faster and much more accessible than the paper returns. Wherever applicable the taxpayers are being provided with faster tax refunds than usual.

The Indian Revenue Service (IRS) have recommended the taxpayer to do the e-filing themselves, if they are comfortable in doing their own computation and taxes. However, for now all those taxpayers who have not yet been approved by the authority have to file the returns through paper mode itself. The following classes of people are not allowed to use e-filing facility:

  • Claiming a dependent that has previously been claimed by some other taxable person.
  • Married taxpayer filing the return separately and also living in a community property state.
  • Tax returns that cannot be filed through electronic mode.
  • Returns that are filed before the beginning e-filing facility i.e. 15th January or after the completion of the process i.e. 15th October.

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    Author: Anil Agrawal
    EZYBIZ India Consulting LLP, New Delhi. The firm is business and tax consultancy firm providing consultancy in Taxation, Regulatory, Transfer pricing, Valuation, Corporate funding and Business set up matters. He may be reached at 9899217778 or anil@ezybizindia.in.