However, those who find it difficult to understand the tax jargon, or have multiple sources of income, may prefer taking help of experts to file their returns. Traditionally, chartered accountants have been the most sought after by tax payers who were looking for assistance to file their tax returns. But, with increasing penetration of the Internet, lack of time and for convenience, tax filing portals are becoming popular.
As of now, there are many tax filing websites through which you can file returns. There are many tax filing apps as well that you can download on your smartphone and use.
With only two weeks left to file your tax returns (last date is 31 July), here is how you can use online portals and apps to file your tax returns.
Tax filing portals
There are different packages and plans that these portals offer, depending upon the number of income sources covered, income level and the type of assistance you need to file your return. You can also file a simple return on your own for free on most of these websites.
However, if you need assistance or want them to file your return, you may have to pay (see table). "Individuals with any type of income-be it Indian income or foreign income, from business or share trading-can easily file their returns with or without expert assistance.
Most of these websites have user-friendly software. You just need you to follow a few instructions and fill your return. In some cases, you just need to upload Form 16 (if it contains all your earnings' details) on the portal and the software does the rest for you. It picks the relevant details and fills the form on your behalf. With some portals, you need to send Form 16 along with basic information via email. They will do the needful and send you the filled income tax return (ITR) form for further processing.
Some portals also take into consideration common issues that most tax filers face while filing returns, such as claiming deduction benefit if not already utilised through the employer and, therefore, not mentioned in Form 16. One such issue is claiming house rent allowance (HRA) while filing returns. Our software lets taxpayers take the HRA benefit (if they could not submit rent receipts to their employer). They just have to answer a couple of questions online. Their HRA exemption is calculated and a majority succeed unassisted.
Banks have also tied up with portals to provide tax filing.
We look at it as customer convenience and accuracy. When you file ITR on the income-tax website, you have to manually key in your Form 16 details. Here you can just upload a PDF of the form.
Using a tax filing app
If you are a salaried individual, besides online portals, you also have the option of filing tax returns through some apps. Most online tax filing companies also offer apps to certain individual taxpayers. All the online tax filing portals try to offer simplified customer interface when they offer apps. For many taxpayers, visiting the income-tax website is intimidating. There is a fear of even reading about ITR on the website because of the jargon used in it.
What do you get in a tax-filing app? The user interface is simpler, making it easier for individuals to navigate on the app. Most of the apps are restricted to ITR1. Almost 80% of the salaried individuals use ITR1. Hence, we are catering only to them as of now.
Some allow you to file ITR2 and ITR2A. For instance, tax filing portal, Hello Tax's app is only for those who have to file ITR1. However, on its website, you can file ITR2 also. Similarly, ClearTax allows you to file all kinds of ITRs on its website. But on its app, you can file only ITR1, ITR2 and ITR2A.
Most of the tax filing done through an app is free of cost. However, some charge a nominal fee. And if you take assistance in filing the tax return, the cost can range from Rs.400 to Rs.13,000, depending on the kind of service. Assisted tax filing means a chartered accountant will help you file your returns. Almost all online tax filing portals that also have apps offer these on Android phones. If you look at the smartphone users in India, majority of them have Android phones. Hence, it makes sense for us to launch it for these users.
Completing the process
Whether you use a portal or an app to file your tax returns, in either case, you have to complete the process by verifying the acknowledgment. You can do this online using a digital signature or through Aadhaar, Internet banking or ATM. The offline way is to take a print out of the acknowledgement (ITR-V), sign it and then send it to income tax department's centralised processing centre in Bengaluru. You can do so either by ordinary post or by speed post, within 120 days of transmitting the data electronically. The process is then complete. You should save a copy for your record.
Once the department receives the acknowledgement, they send you a mail confirming the receipt. But one must remember that after receiving ITR-V, the submitted return gets checked for any errors or missing information before it is sent for processing. Another intimation is sent by the tax department after checking for any calculation error, incorrect claim, excessive deduction, or wrong exemption in the return of income filed.
With only a few days left to file tax returns, make sure you have all the information needed to be able to do this.
If the income tax department's website seems difficult to use, there are many portals and apps also available. If you can file yourself, then go ahead; if not, then seek assistance.
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