Electronic filing or e filing is a process of filing tax returns over the internet. In earlier years, this process was manual. Hence, it was not only slow and complicated but also highly prone to errors. At present, this is done using tax preparation software initiated by the Income Tax Department for the purpose of making the income-tax assessment easy and convenient to use. In this article, we will discuss the various advantages of e filing.
Methods of filing returns
1. Manual filing – Manual filing is the traditional process wherein taxpayers manually go and file returns by visiting the income tax office.
2. eFiling – The best Chartered Accountant in Dwarka or a firm could take responsibility of filing and submitting returns on behalf of the taxpayers.
Benefits of E-Filing
The following are the benefits of e-filing:
1. Convenience
e-filing of returns provides comfort to the taxpayers as they can comfortably file returns from the comfort of their homes as opposed to the manual filing process that involves visiting a tax office making the entire process time-consuming.
2. Status tracking
Filing return online allows the taxpayer to track status according to his/her wish. It provides an option to the user to check whether the return has been received by the concerned department or the status of the particular income tax refund.
Well, under no event it means that taxpayers wouldn’t be aware of their income tax return status if they opt for the manual method of filing. However, it used to be only possible through postal means which was not a convenient process.
3. Access to documents
Income tax return E-filing requires users to upload the necessary documents. It thus helps them to create a database that could be accessed whenever required.
4. Avoid errors
Filing of returns manually is a bit complex process that involves a lot of computations. On the other hand, E-filing software reduces the number of errors as the software allows checking tax calculation and accounting reporting automatically and more accurately.
5. No duplication in hard copy
Submitting tax returns electronically does not require duplication in hard copy.
6. E-verification
It is now extremely convenient to verify income tax returns online through the e-verification facility. However, to avail of the same, the user must have an aadhaar card. Moreover, the aadhaar card should be linked to your phone number since the verification OTP is sent to the particular phone number.
7. Efficiency of data processing
The e-filing system increases the efficiency of data processing as the return filed electronically gets through input check and enters in separate accounts.
It can be concluded that e-filing has several benefits. Owing to this, the online system of tax payment has become increasingly popular. The taxpayer can enjoy the liberty to file a return from the comfort of his or her own home at any convenient time. To file your income tax return, you can either directly go to the e-filing portal or take help from an accounting professional in Dwarka!
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