10 benefits of Online filing of Income tax

return
During this time of year, the term "income tax e-filing" is particularly popular. After the months of
February-March or September, the months of June-July are the most popular. Many of us have
wondered what Income Tax E-filing is and why we are hearing the term E-filing Income Tax more
frequently these days. In layman's terms, Income Tax E-filing is nothing more than the electronic
filing of annual income tax forms. As most of us are aware, all individuals with total income
exceeding the amount not subject to tax are required to file income tax forms (Sec 139 of Income
Tax Act, 1961).

Now you might be wondering why we should file our income tax returns electronically rather than
manually. There are numerous benefits to filing income tax returns electronically rather than
manually:

After the months of February-March or September, the term "income tax e-filing" becomes
increasingly popular around this time of year, i.e. June-July. Many of us have wondered what Income
Tax E-filing is and why we are hearing the term E-filing Income Tax more frequently these days. In
layman's terms, Income Tax E-filing is nothing more than the electronic filing of annual income tax
forms. As most of us are aware, all individuals with total income exceeding the amount not subject
to tax are required to file income tax forms. (Income Tax Act of 1961, Section 139).

Now you might be wondering why we should file our income tax returns electronically rather than
manually. There are numerous benefits to completing income tax forms electronically rather than
manually:

1. INCOME TAX EFILING WILL PROCESS QUICKER INCOME TAX REFUND:

This is the most significant aspect for most salaried people, such as LIC agents, contractors, and
commission agents, when it comes to E-filing their income tax returns. When you get your paychecks
or fees, a portion of the money is removed from the total amount owed to you. TDS is the term for
the amount deducted, which can be as little as 1% to as much as 20%. For example, if a Life
Insurance salesperson sells a policy and receives a commission of Rs. 20,000.00, the business will
deduct Rs. 2000.00 in TDS and deposit the money with the Income Tax Department as your tax. To
reclaim the amount of TDS deducted from your earnings, you must first file your income tax returns
and then apply for an income tax refund (Including your TDS amount).

Now comes the advantage of Income Tax Efiling: refund claims submitted through Online Income
Tax Efiling are always received significantly sooner than claims submitted manually. Another benefit
is that you will no longer have to pay your Income Tax expert a 10% commission to generate your tax
refund. So why file your taxes by hand when you can Efile and get your returns faster?

2. INCOME TAX REFUND STATUS

The second most essential benefit of Efiling Income Tax is that you may always check the status of
your refund. Isn't it better to be able to check your refund status online rather than going to the
department and waiting for the Income Tax Officials to inform you of your refund status?
3.RECTIFICATION & REVISION OF THE DEFECTIVE INCOME RETURNS OR WRONG PROCESSED
RETURNS

This benefit may not be valuable to everyone, but for others, it is the finest benefit of Efiling Income
Taxes. Many of us are receiving Notices of Defective Returns from the Internal Revenue Service,
which detail the problems made during the Efiling of Income Tax Returns. NIL income on forms, no
audit details filled in, and so on are examples of these errors. Filers who file their taxes electronically
will have a better chance to correct or revise their returns by filing corrections online. Because the
time limit for submitting rectification is just 15 days, receiving notice on your email as soon as
possible is always preferable to those received by Our Post Department (We all know how slow it
can be).

4. INCOME TAX EFILING IS MANDATORY

Yes, efiling of income tax returns is required for the vast majority of people. If your annual income
exceeds Rs. 500,000.00, you must have your accounts audited by a Chartered Accountant. Income
Tax Efiling is now required for all refund claimants and those filing ITR3, ITR4, ITR5, ITR6, and ITR7
beginning this year.

5. INCOME TAX EFILING WILL KEEP ALL YOUR RECORDS AT ONE PLACE

Many of our readers will recall times when they required their Income Tax Return
Acknowledgements for bank loans, as income proofs, or to respond to Department letters, among
other things. When the necessity occurs, however, there is always an issue, such as a misplaced
Income Tax Return. If you file your Income Tax return online, don't worry; all of your information will
be saved on the Income Tax server, and you may print all of the forms by logging into your account
on the Income Tax website.

6. BE ENVIRONMENT FRIENDLY

NGO's, governments, and other organisations are continually reminding us of the importance of
being environmentally conscious. We're all attempting to be environmentally conscious, but are we
succeeding? Taking little efforts, such as efiling your income tax, will save paper, which will preserve
trees and natural resources. So, instead of taking big steps and doing nothing, take modest steps
from your house and save paper while still being environmentally friendly.

7. SAVES MONEY

Yes, submitting your taxes electronically saves you money. You may be wondering how it can save
money when it just takes money produced in the form of taxes. No, it saves money because when
you submit your return manually, there is a greater than 50% risk that you will make a mistake on
the form, necessitating the use of a tax adviser, such as a Chartered Accountant, a lawyer, or just an
Accountant. If you Efile it online, the IRS will supply you with all of the information you need to file
an error-free Income Tax Return. You can now save thousands of dollars by doing your own E-filing
rather than hiring a professional.

8. GRIEVANCE REDRESSAL

On its online portal, the Internal Revenue Service (IRS) has just launched a new function called
Grievance Redress. The tool allows website users to submit any grievance to the Income Tax
Department and, guess what, you will obtain the most helpful response from department officials.
Why would anyone want to go to the Income Tax Department and ask their question about income
tax and deal with their unneeded tantrums when you can ask your question from the comfort of
your own home?

9. E-FILING, E-PAYMENT AND E-COMMUNICATION

The three E's of income tax efiling are now the most crucial benefit. Have you ever considered how
much time you waste when you go to the bank to pay your income tax while standing in a long line,
or when you go to the Income Tax Department to submit your return while waiting in a long line, or
when communication from the department does not reach your door step, and the problems you
face as a result? Everyone is aware of these issues and the hours of time waste they cause. Wouldn't
it be preferable to save this time and put it to better use in your career, business, or with the most
important aspect of our lives, our families? Then why not Efile your Income Tax and sit back and
relax.

10. OTHER BENEFITS

There are numerous other advantages, such as online 26AS, PAN verification, Intimation requests,
Response to Demand, Income Tax Calculator, and Income Tax Softwares, to name a few. These
services are all available on the IRS website, which improves the Efiling experience.