A Study of E-Filing of Income Tax Returns

A STUDY OF E-FILING OF INCOME TAX RETURNS
INTRODUCTION:
E-filing is a system for submitting tax documents to the income tax
department through the internet or direct connection, usually without the need to submit any
paper documents. Various tax return preparation soft wares with e-filing capabilities are
available as standalone commercial use. E-file is the term for electronic filing, or sending your
ITR from tax software via the Internet to the tax authority.
E-filing of Income tax return online refers to the process of filing Income Tax electronically.
Now no longer have to stand in long queues and no waiting for deposits. Customized return
forms have been devised by the Income Tax Authority which is available on the site of the
department. These forms have been devised with such details that tax payers need not file any
supporting document along with.
INCOME TAX:
In the modern times, income tax is an annual tax on income. The Indian
Income Tax Act (Section 4) provides that in respect of the total income of the previous year of
every person, income tax shall be charged for the corresponding assessment year at the rates laid
down by the Finance Act for that assessment year. Section 14 of the Income Tax Act further
provides that for the purpose of charge of income tax and computation of total income all income
shall be classified under the following heads of income: salaries, income from house property,
profits and gains of business or profession, capital gains, income from other sources.
The total income from all the above heads of income is calculated in accordance with the
provisions of the Act as they stand on the first day of April of any assessment year. The Income
Tax Department is responsible for all activities related to the taxation process.
The Income Tax Department is governed by the Central Board for Direct Taxes (CBDT) and is
part of the Department of Revenue under the Ministry of Finance, Government of India.
SALIENT FEATURES:
I. Improved Accuracy.
II. Reduced Processing Costs and less document work.
III. Saves Time.
IV. Improved Customer Service or user friendly.
STATEMENT OF PROBLEM:
There Lack of experience and knowledge to e-file tax return. Network

problems may occur during peak hours. It can be difficult to remember Registration number
and password. Computer illiterates may find it hard to file income tax returns. There can be
confusions in online process for first time who does not have enough knowledge about it.
Electronic filing can be exposed to risks like trogons’, worms, virus attacks etc.
NEED OF STUDY:
There may be changes in the slab rate of tax returns every year or when there
is change in government policies. The user should be known about the current rates and
taxes. The tax payer should know the detail knowledge of filing income tax returns and also
about the amendments made on the rules and slab rate of taxes. The tax payer should know
how to file income tax return online through internet. The tax payer should know the
documents required and the things required in filing income tax such as digital signatures by
chartered accountant which is mandatory.
RELEVANCE AND IMPORTANCE OF STUDY:
Filing of return provides legality to what we are earning whether we are paying tax on it or not.
Prompt payment of taxes and filing of returns is less likely to attract attention of the IT
Department.
a. A mandatory concept has been introduced for every person to file his return even if it is
below the exemption limit, no matter what. Hence is important for every person to pay
tax accordingly.
b. Any transaction can be legally entered into because the government is having records of
the income and it is collecting tax on it.
c. Payment of taxes helps every citizen to participate in the contribution towards national
income and consequently in the appraisal of the national economy. Hence it is a contribution
towards our country by every person by paying tax.
d. Willful evasion of tax or intentional avoidance would lead to prosecution by IT Department.
e. If a person accrues losses in his business, he cannot carry it forward to set off against
his income in the next year if he does not file his return for the relevant previous year.
ASSUMPTIONS:
I. E-Filing is adopted by every company and every company files income tax with internet
filing.
II. The respondent selected by me is having well knowledge about their field of income tax
filing of return.
III. The respondent will give correct answer of every question and query asked to them.
OBJECTIVES:
I. To suggest the user the process of e-filing of tax return of income tax.
II. To get detailed knowledge about e-filing.
III. To help others to understand and clear their issues relating to e-filing.
JUSTIFICATION OF OBJECTIVES:
Due to e-filing return the respondent can easily file the income tax
electronically. The respondent can get knowledge in detail about the process of e-filing
and thus file income tax return efficiently. The respondent will get help and related
solutions on the problems arising during e-filing of income tax returns.
STATEMENT OF HYPOTHESIS:
I. It is easy to file income tax return with the help of internet.
II. E-filing is user friendly.
III. The assessee takes help of a professional to file income tax return.

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A STUDY OF E-FILING OF INCOME TAX RETURNS

There Lack of experience and knowledge to e-file tax return. Network

RELEVANCE AND IMPORTANCE OF STUDY:

d. Willful evasion of tax or intentional avoidance would lead to prosecution by IT Department.

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