What is E-Filing of Income Tax Return and how

will you benefit from E-filing yours ?

The income tax filing solution that makes you look smart!

www.TaxMunshi.com
August 23rd,2010

Email: contact@paisaa.in
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What is E-Preparation of Income Tax Return?

E-Preparation of IT Return is the process of

preparing your Income Tax Return using a
software. The E-Preparation software can be
of 2 types:

A. Manual Calculation:
Those that allow you to enter your Income Tax data
but do not calculate the Income Tax & Refund etc.
The individual user needs to calculate the above
himself/herself

B. Auto Calculation:
Those that take the Income Tax related data that you
have entered to automatically calculate the Income
Tax and Refund using their inbuilt tax calculation
engine that is updated for current rules
Auto Calculation Software is more efficient and less
prone to calculation errors

Updated: 8/23/2010 Copyright www.TaxMunshi.com 2

What is E-Filing of Income Tax Return?
What is E-Filing of Income Tax:
E-Filing of IT Returns is the process of electronically
submitting your Income Tax Return to the Income Tax
Department.

This electronic submission can be done in one of the

following ways:
A. Manually : where you take the output of the
software in XML or non-XML format , convert to XML
in case of the latter and upload it to the Income Tax
Website
B. Automatically: Providers that are Authorized E-
Return Intermediaries of ITD, are integrated with the
Income Tax Department and authorized to E-File
your Income Tax Return. Such providers allow you to
E-File your return with a click of a button

XML upload is tedious and user may run into issues for
incorrect format or validation error .

Updated: 8/23/2010 Copyright www.TaxMunshi.com 3

How do I sign my Income Tax Return when I E-File?
An ITR is an important document and the individual to
whom it belongs needs to sign it – Manually or
Digitally to affirm that (s)he has reviewed it and is the
one who is officially submitting the ITR.

An IT Return can be signed in the following ways when it

is being E-filed:
• Digitally : Use digital signature, in which case no
further action is required. An acknowledgement of
filing is provided instantly after submission
• Without Digital Signature (paper signature): You can
E-File without digital signature, in which case ITR-V
form is to be physically signed & filed with the
department’s Bengaluru office .ITR-V is a single page
receipt cum verification form that is sent to the
assessee via an e-mail from ITD

Updated: 8/23/2010 Copyright www.TaxMunshi.com 4

Benefits of E-filing ITR
E-filing is easy, fast, and the most reliable and secure method

• Fast Processing: The acknowledgment of ITR submission is fast and the refunds are
processed faster by the ITD for E-Filed ITRs
• More Accurate: E-Filing software with built-in validations and electronic connectivity to ITD
are seamless and help minimize errors. Paper based filing with self calculations can be prone
to error. Also, when any paper based form is transferred to electronic system , there is always
a possibility of human error in data entry.
• No Time place constraint: You can file anytime, anywhere. E-Filing is available 24 hours a
day, seven days a week , so taxpayers may always file at their own convenience
• More Secure than Paper based filing: E-filing is safer than paper based filing. With paper
based filing your confidential identity information is lying in files and can be passed from
person to person in the CA’s office or in ITD’s office
• You can easily access and use your data for future returns: Most of the paid E-filing software
applications store your data in a secure manner and allow you to access it whenever you are
ready to file subsequent returns
• It is good for the environment: E-Filing is environment friendly. You just need to print no or
at most one page instead of multiple copies of multiple pages that is required in case of
paper based filing

Updated: 8/23/2010 Copyright www.TaxMunshi.com 5

How to select an E-filing Software
Attribute Low End
Tax Calculation You calculate yourself
ITR generation PDF file for manual submission
in local ITD Office Only or XML
Data Transmission to ITD You upload XML
Support to end users No Support provided or
minimal support provided
Security Limited
High End
Automatically Calculated
Direct transmission* to ITD
Automatically transmitted*
Support Staff can be accessed
via email, chat or phone 24*7
Over 128 Bit SSL to protect
your confidential Information

Storage of past ITR Not Provided Provided so that you may

import your previous ITRs
data

* Provided by ITD Authorized E-Return Intermediary Only

Updated: 8/23/2010 Copyright www.TaxMunshi.com 6
Why E-file your Income Tax Return

The income tax filing solution that makes you look smart!

www.TaxMunshi.com
August 23rd,2010

Email: contact@paisaa.in
Twitter: @TaxMunshi
Facebook: TaxMunshi