The process of electronically filing Income tax returns through the internet isknown as e-filing and is meant to ensure saving of time and paperwork fortaxpayers. It is mandatory for companies and Firms requiring statutory auditu/s 44AB to submit the Income tax returns electronically for AY 2009-10. E-filing is possible with or without digital signature.There are three ways to file returns electronically.
Option 1: Use digital signature, in which case no further action isrequired.
Option 2: File without digital signature, in which case ITR-V form is tobe filed with the department. This is a single page receipt cum verificationform.
Option 3: File through an e-return intermediary who would do eFilingand also assist the Assessee file the ITR -V Form.In option 2 & option 3 Assessee need to file Acknowledgement of IT dulysigned by him within 60 days from the return filing date or September 30,whichever is laterat centralprocessing center of Income Taxdepartment situated by ordinary post at Post Bag No.1, Electronic City PostOffice, Bengaluru, Karnataka-560100. Now there is some relief for peoplelooking at this route for filing their returns, but this could well turn out to betemporary.PROCESSThe e-return filing process starts with the taxpayer filling in various detailsusing the software provided by the tax department. The file, along with thenecessary data relating to the income, is then transmitted online to thetax authorities and an acknowledgement-cum-verification form is generated.The physical process starts after this for a lot of people. Since the return isfilled in online, this requires a digital signature. In case of a physical return,the taxpayer will sign the return form and then present it but this is notpossible online, so the authentication is done throughthe digitalsignature route.But, every person and especially small taxpayers do not have a digitalsignature and for those who do not, this there is an additional action tocomplete the process. These taxpayers have to send the physical copy of the