e-Filing of Returns

An Overview of the Process of e-Filing of Returns

What is e-Filing
The process of electronically filing Income tax returns through the internet is known as e-Filing. It is mandatory for Companies and Firms requiring statutory audit u/s 44AB to submit the Income tax returns electronically from AY 2007-08 onwards.
Any Company/Firm requiring statutory audit u/s 44AB return submitted without a e-Filing receipt will not be accepted.

e-filing is possible with or without digital signature. Digital signature is mandatory for Companies from AY2010-11 onwards.

Relevant Notifications, Circulars & Instructions 2006-07 & 2007-08

New forms ITR1 to ITR 8 for AY 2007-2008 notified on 14th May07. Circular no. 3/2007 issued on 25th May07 regarding acceptance of paper returns for companies and firms covered by 44AB under certain circumstances. Circular no 9/2006 - Exhaustive explanation of the entire scheme of e-Filing for Public. Circular No 12/ 2006 E-filing not mandatory for Representative Assessee. Instruction no. 7 dt 10/10/2006 - Exhaustive explanation & other guidelines for department of the entire scheme of e-Filing for Public. Vide Notification No. 128/2006, dated 1-6-2006 S.O. 848 (E), Form 2F was notified &Vide NOTIFICATION NO. 189/2006, dated 24-72006 Forms 1, 2, 3, 3B were notified.

Relevant Notifications, Circulars & Instructions Historical Perspective

Vide Notification No. 253 of 2004, dated 30th Sep., 2004 S.O.1073(E), Electronic Furnishing of Return of Income Scheme, 2004 was notified for e-Filing of returns: An eligible person may, at his option, furnish his return of income which he is required to furnish under sub-section (1) of section 139 of the Act for the assessment year 2004-05 and any subsequent assessment year, to an e-Return intermediary. Digital signature, e-return, e-return intermediary were defined in this scheme

Types of e-Filing
There are three ways to file returns electronically Option 1: Use digital signature in which case no paper return is required to be submitted Option 2: File without digital signature in which case ITR-V form is to submitted to CPC Bengaluru within 120 days of efiling. This is a single page receipt cum verification form. Option 3: File through an e-return intermediary who would do eFiling and also assist the Assessee file the ITR V Form .

New IT Returns Annexure-less Forms

For Individuals, HUF
Select appropriate Income Tax Return (ITR) Preparation Software 1 2 Income from Salary/Pension Income from Other Sources (only Interest income or Family Pension) Income/Loss from Other Sources Income/Loss from House Property Capital Gains/Loss on sale of investments/property Partner in a partnership Firm Income from Proprietary Business/Profession ITR-1 Individual ITR-2 ITR-3 ITR-4 ITR-4S Individual & HUF

3 4 5 6 7

Income from presumptive Business

New IT Returns Annexure-less Forms

For Association of Persons (AoP), Body of Individuals (BoI), Local Authority, Companies, Trusts, Fringe Benefit Tax (FBT) Return
Select appropriate Income Tax Return (ITR) Preparation Software ITR-5 Firms, AoP, BoI, LA,LLP ITR-6 Companies ITR-7 Trusts ITR-8 Only FBT

1 2 3 4 5

Income/Loss from Other Sources Income/Loss from House Property Capital Gains/Loss on sale of investments/property Income/Loss from Business Fringe Benefit Tax

Please note ITR-7 will not be available for e-Filing. ITR-8 is discontinued for e-Filing from AY2010-11 onwards, still continued for AY2007-08,2008-09,2009-10.

Change in Procedure of e-Filing

Type For Digitally signed Returns Paper Returns Two step Procedure Paper Returns through e -intermediaries Change No change After uploading data Assessee need to submit verification Form Called ITR-V to CPC Bengaluru.

e-Filing Process At a glance

Select appropriate type of Return Form Download Return Preparation Software for selected Return Form. Fill your return offline and generate a XML file. Register and create a user id/password Login and click on relevant form on left panel and select "Submit Return" Browse to select XML file and click on "Upload" button On successful upload acknowledgement details would be displayed. Click on "Print" to generate printout of acknowledgement/ITR-V Form.

e-Filing Process At a glance

Incase the return is digitally signed, on generation of "Acknowledgement" the Return Filing process gets completed. You may take a printout of the Acknowledgement for your record. Incase the return is not digitally signed, on successful uploading of e-Return, the ITR-V Form would be generated which needs to be printed by the tax payers. This is an acknowledgement cum verification form (ITR-V). A duly signed ITR-V form should be submitted to CPC using Ordinary Post or Speed Post within 120 days of transmitting the data electronically. This completes the Return filing process for non-digitally signed Returns.

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