E-Filing of Income Tax Return in 2010 - Get Your Facts Right

July is that time of the year when you need tocompletely interactive method of furnishing the
gear up for filing income tax returns. Section 139return data making it extremely simple even for a
(1) of Income Tax Act, 1961 makes it mandatorylayman to furnish E-Returns.
to file income tax returns by due date. July 31 isWhen you file your returns electronically, you
the due date of filing ITR for the AY 2010-2011need to pay careful attention to few very
(FY 2009-2010) for the majority of individualimportant points:
taxpayers.- Pick the right form ITR-1 through ITR-4
There are three ways of submitting ITR:whichever is applicable to you.
1. Paper Return - It is accepted only for few- Do not delay submission of ITR-V, which must
categories of taxpayers, for all the otherreach ITD-CPC Banglore within thirty days of
taxpayers, E-filing is mandatorysigning ITR-V. Send ITR-V only by ordinary post.
2. Electronic Return without Digital Signature -Do not send it by courier, speed post or hand
Transmitting the income tax return datadelivery. Alternatively, you can obtain a digital
electronically and sending physically signed hardsignature and sign your ITR. Getting a digital
copy of ITR-V (V is for verification and notsignature is not as difficult as it may sound.
roman 5), which is sent by IT departmentCharges for digital signature vary from 150
through emailupward depending upon the type of signature and
3. Electronic Return with Digital Signature -period for which you want it. If your ITR-V does
Transmitting the data electronically and signing thenot reach the IT department in the stipulated
return with digital signaturetime, your ITR is likely to become invalid and you
E-filing of ITR has become popular during the pastmight have to refile your return. As soon as IT
three years due to the convenience and simplicitydepartment receives your ITR-V, you will receive
of filing the returns. When you file your Incomean email acknowledging the receipt of your ITR-V,
Tax Return electronically, there are absolutely nowhich completes the entire procedure of ITR.
hassles and you save money that you would- You are not required to send any documents,
otherwise pay to the Chartered Accountants forcomputation sheets, Form 16, Form 16A etc (as
filing your ITR.was necessary in the past) along with ITR
E-filing of ITR can be done in two ways:- Do not ignore to furnish the details of specific
1. You can take the help of authorized E-Returntransactions as per AIR (Annual Information
agencies such as Taxsmile and Taxmanager,Return)
among other, that charge fees of the order of- Make sure that you have also included the
Rs. 250 onward plus service tax depending upondetails of exempt income such as PPF interest,
the type of package. Registration is free on theinterest from tax-free bonds, dividend income
sites of all the E-Return Intermediaries and theyfrom listed stocks and mutual fund units, long
do not ask you to pay anything upfront until youterm capital gain on stocks and equity oriented
are ready to upload your ITR. Therefore, there isunits of mutual funds which STT has been paid.
nothing wrong in checking out e-return agenciesIn the End:
websites.When you submit E-Return through agencies,
2. You can go for E-filing directly through themost of the important factors are taken into
website of IT department. Furnishing returnsaccount leaving no chance for you to make any
through IT department websites is slightly difficultmistake.
because the e return agencies offer you a