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 for AY
2007-08.
– 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.
Relevant Notifications, Circulars & Instructions 2006-07
& 2007-08
• New forms ITR1 to ITR 8 for AY 2007-2008 notified on 14th
May’07.
• Circular no. 3/2007 issued on 25th May’07 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 24-7-
2006 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 … AY 2007-08

• 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
filed with the department. This is a single page receipt cum
verification form.
• Option 3: File through an e-return intermediary who would do e-
Filing 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-1 ITR-2 ITR-3 ITR-4
(ITR) Preparation Software
Individual Individual Individual Individual
& HUF & HUF & HUF
1 Income from Salary/Pension ▪ ▪ ▪ ▪
2 Income from Other Sources (only
Interest income or Family ▪ ▪ ▪ ▪
Pension)
3 Income/Loss from Other Sources
▪ ▪ ▪

4 Income/Loss from House

▪ ▪ ▪
Property
5 Capital Gains/Loss on sale of
▪ ▪ ▪
investments/property
6 Partner in a partnership Firm ▪ ▪
7 Income from Proprietary
▪
Business/Profession
 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-5 ITR-6 ITR-7 ITR-8
(ITR) Preparation Software
Firms, AoP, Companies Trusts Only FBT
BoI, LA

1 Income/Loss from Other Sources ▪ ▪ ▪

2 Income/Loss from House
Property ▪ ▪ ▪

3 Capital Gains/Loss on sale of

▪ ▪ ▪
investments/property
4 Income/Loss from Business
▪ ▪ ▪

5 Fringe Benefit Tax

▪ ▪ ▪ ▪

ITR-7 will not be available for e-Filing

Change in Procedure of e-Filing
Type Change
For Digitally signed No change
Returns
Paper Returns – Two After uploading data – Instead of filing paper
step Procedure return Assessee to file verification Form
Called ITR-V (Combination of
Paper Returns – through Acknowledgement of e-return & Verification)
e
-intermediaries
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. The tax payer has to fill-up the verification part and
verify the same. A duly verified ITR-V form should be submitted with
the local Income Tax Office within 15 days of filing electronically.
This completes the Return filing process for non-digitally signed
Returns.
Thank you