PROJECT REPORT

Submitted for the Degree of B. Com. Honours in

Accounting & Finance under

Title of the project

COMPUTERISED ACCOUNTING AND E-FILING

Submitted By
Name of the Candidate: Suman Polley
Registration No. 424-1111-0556-19
Roll no. 191424-21-0052
Name of the College: Shyampur Siddheswari
. Mahavidyalaya

Month & Year of Submission: - 2022-2023

PART- A COMPUTERISED ACCOUNTING

CONTENT
SL NO. PARTICULARS PAGE

1. CONCEPT & FEATURES 02

2. SOFTWARE USE IN COMPUTERIZE ACCOUNTING 02

3. BENEFITS AND DRAWBRACKS 03

4. TALLY ERP 9:

 CONCEPT 04

 COMPANY CREATION 04

 LEDGER GROUP 05

 VOUCHER ENTRIES 15

 REPORT 18

1
1.Concept of Computerized Accounting Environment:

Computerized accounting system is a software that helps businesses to manage the

big financial transactions, data, reports, and statements with high efficiency, speed,
and better accuracy.

2.Features of Computerized Accounting Environment:

This Accounting System and its awareness among entities have become a necessity
in the present environment. Businesses of whatever field and size are shifting from
the practice of maintaining accounts manually. The manual process is more time-
consuming and exposed to human error.

Storage and retrieval of data and generation of a report cannot be ensured in

real time in the traditional system. There is a need to shift to computerized
accounting systems. They have empowered business to project accurate
information of financial performance.

Accuracy & Speed:

Computerized accounting has customized templates for users which allows
fast and accurate data entry. Thus, after recording the transactions it generates the
information and reports automatically.
Scalability:
It has the flexibility to record the transactions with the changing volume of
business.
Instant Reporting:
It can generate a quality report in real time because of high speed and
accuracy.
Security:
Secured data and information can be kept confidential as compared to the
traditional accounting system.
3.Software used in computerized Accounting: -
FreshBooks
NetSuite ERP
QuickBooks Online
Sage Business Cloud Accounting
Tipalti Approve
AvidXchange
Rossum

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 A2X
Trolley
4.Benefits AND Drawbacks of Computerized Accounting: -

A. Benefits

Computerized accounting software offers us much more than just basic automated
accounting services. Below mentioned are the key benefits of computerized
accounting software: -

Better Quality Work:

The accounts prepared with the use of computerized accounting system are
usually uniform, neat, accurate, and more legible than a manual job.
Lower Operating Costs:
Computer is a reliable and time-saving device. The volume of job handled with
the help of computerized system results in economy and lower operating costs. The
overall operating cost of this system is low in comparison to the traditional system.
Improves Efficiency:
This system is more efficient in comparison to the traditional system. The
computer makes sure speed and accuracy in preparing the records and accounts
and thus, increases the efficiency of employees.
Facilitates Better Control:
From the management point of view, there is greater control possible and more
information may be available with the use of the computer in accounting. It ensures
efficient performance in accounting records.

B. Drawback
Like anything, a computerized accounting system also comes with its fair share of
disadvantages. Here’re a few limitations of computerized accounting systems:

Technical Errors:
Any technical piece of machinery is prone to face technical issues at any
given point of time. Similarly, while using a computerized accounting software you
can also come across several technical errors like server delays or issues, power
cuts, software bugs, etc.
Expensive Installation & Maintenance:
Although in the long run a computerized accounting system may seem cost-
effective, but its installation and maintenance can be highly expensive. In the
beginning, a lot of investment needs to be made for training your personnel to
understand and get used to the automated software .
Online Threat:

3
 Even though our business accounting information is stored in the cloud, it can
be easily hacked and can be misused against your business. You have to be careful
while securing it with strong passwords and giving access only to your most trusted
people.

Even though there are multiple disadvantages to a computerized accounting

system that cannot be ignored but definitely can be prevented by making the right
choice.
5.TALLY ERP 9
(i)CONCEPT: -
Tally is a complete system for business accounting and inventory
management. It provides various facilities like Govt. supported formats,
multilingual operations, online functions and processing for small, medium
and big businesses. The present version of Tally has many advanced features
like better data migrating, payroll management, TDS, TCS, job costing and
point- of sale invoicing etc.
(ii)COMPANY CREATION: -
 Go to Gateway of Tally > Alt + F3 > Create Company
 Enter the basic information, i.e., name, mailing name and address of the
company, currency symbol etc.
 In the ‘maintain field’, select Accounts Only or Accounts with Inventory
as per the company requirements.
 In the Financial Year from, the first day of the current financial year for
e.g., 1-4-2017 will be displayed by default, which can be changed as per
requirement.
 Enter the Tally Vault Password if required.
 Press Y or Enter to accept and save.

4
(iii)(a) LEDGER CREATION: -
Path:  Gateway of Tally –> Accounts Info –> Ledgers –> Single Ledger –>
Choose Create.
Step 1: From Gateway of Tally Screen, click on accounts info

5
Step 2: In the next screen, choose “Ledger”

Step 3: In the next ledger screen, choose the option create under single ledge

Step 4: On ledger creation screen, update the following details

 Name: Enter the name of ledger account, and the name should be unique.
 Under: Choose the group name from list of groups, that pertains to ledger
account.

6
After maintaining all the required details, choose Yes option under Accept to save
the configured details in Tally.ERP 9

How to display single ledger in Tally

After creation of single ledger account in Tally, you view the details of ledger by
choosing the option display. Refer below steps how to display single ledger
Path: Gateway of Tally –> Accounts Info –> Ledgers –> Single Ledger –> Choose
Display

7
Choose the ledger account from list of ledgers

Now the complete details of ledger account display in the screen as shown below
image.

8
How to Alter Single ledger in Tally
Path: Gateway of Tally –> Accounts Info –> Ledgers –> Single Ledger –> Choose
Alter

On select ledger screen, choose the ledger account from the list of ledgers

Now modify/ alter the required details for ledger account and click on A: Accept to
save the changed details in Tally ERP 9.

9
(iii)(b) How to Create Stock Items in Tally ERP 9: -

Stock items are referred to as goods that a company manufactures in Tally. In Tally,
stock items can be created using two methods which are as follows:

1. Single Stock Item

2. Multiple Stock Items

Creation of Single stock item

Use the following path to create single stock items in Tally.

Gateway of Tally → Inventory Info → Stock Items → Single stock item →

Create

Step 1: Go to Gateway of Tally and then Choose Inventory Info.

10
Step 2: Choose Stock items under Inventory Info.

Step 3: Choose "Create" under the Single Stock Item.

11
Step 4: Enter the following details on the next screen, "Single Stock Group
Creation".

Name: Specify the name of the stock item.

Alias: It can be short name of stock item or product id or another name.

Under: Specify the stock group under which this stock item is to be specified.

Category: Specify the stock category of stock items.

Units: It specifies the units of measure to count the stock items.

Opening Balance: Specify the opening balance of the stock items.

Quantity: Specify the quantity of stock items.

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Rate: When we are entering the values of the rate for stock items, a new window
opens. Update the following details, as shown below:

Godown: Under the list of Godowns, choose Godown.

Rate: Specify the rate of stock items.

Based on the quantity and rate amounts, per and amount values are automatically
calculated.

13
After specifying all required details, press enter to continue. In Tally ERP 9, choose
'Yes' to save the details.

Creation of Multiple Stock Items

Use the following path to create multiple stock items:

Gateway of Tally.ERP 9 > Inventory Info > Stock Items > Multiple stock items >
Create

Step 1: Choose the "Create" option under multiple stock items, as shown below.

14
Step 2: Enter the following details in the next screen, "Multi Stock Item Creation".

Under group: Choose under group as all items to update the different types of
stock items with different category groups.

Now update all the required details: Specify the name of items, stock group, stock
category, stock units, stock opening qty, and rates.

In the Tally ERP 9 system, click on A: Accept to save the entered details.

(iv)Voucher Entry Configuration: -

You can customise the voucher entries in Tally.ERP 9, both the accounting and
inventory vouchers, by enabling required options in the Voucher
Configuration screen.
1. Go to Gateway of Tally > F12: Configure > Voucher Entry. The Voucher
Configuration screen appears as shown below:

15
 2. Enable the required options.
3. Press Ctrl+A to accept.
Accounts
Option Functionality

By default, the cursor skips the Date field

Skip Date field during
during Voucher creation. If you do not want to
creation for faster entry
skip the date field then set this option to No.

By default, Tally.ERP 9 displays single entry

Use single entry mode for
mode for payment/receipt/contra entry. If you
payment/receipt/contra
want to display it in double entry mode, then
vouchers
set this option to No.

Use payment/receipt as Enable this option to use payment and receipt

contra voucher voucher as contra voucher.

Use Cr/Dr instead of to/By Enable this option to change to/By to Cr/Dr in

during entry the vouchers.

Enable this option to print the cheques from

Use cheque printing for
contra voucher while making the interbank
contra voucher
transfers and cash withdrawals.

By Default, Tally.ERP 9 displays a Negative

Warn on negative cash Cash balance warning Message. If you set it
balance to No, the error message will not be
displayed.

Preallocate bills for

Enable this option to preallocate the bills
payment/receipt/journal
before specifying the ledger amount.
voucher

Allow cash accounts in Enable this option to select cash and also
journal vouchers bank account in Journal voucher.

Allow expenses/fixed assets Enable this option to select the expenses and
in purchase vouchers also fixed asset ledger in purchase voucher.

By default, Tally.ERP 9 displays inventory

details in the voucher entry screen. If you set
Show inventory details
it to No, the inventory details will not be
displayed.

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 By default, pending bills list of a ledger
Show table of bills for account are displayed in the voucher entry
selection screen. If you set it to No, the pending bills list
will not be displayed.

By default, Bill-wise details of a ledger account are

Show bill-wise details displayed in the Voucher entry screen. If you set it
to No, Bill wise details will not be displayed

By default, the ledger current balance up to last

Show current balances of voucher entry date are displayed. If you set it
ledgers to No, the ledger current balance will not be
displayed

By default, the ledger current balance up to last

Show balance as on voucher voucher entry date are displayed. If you set it
date to Yes, it will display the ledger balance up to
current voucher entry date

By default, the Forex Gain/Loss balance up to the

Show forex gain/loss as on last voucher entry date are displayed. If you set it
voucher date to Yes, it will display the Forex Gain/Loss balance
up to current voucher entry date

Inventory
Option Functionality

Provide reference
Enable this option to add the voucher reference field in
number in stock
Stock Journal also.
journal

Show compound
Enable this option to show the compound unit of item
unit of item based
based on the unit provided in the Rate Per column.
on rate

Enable this option to display full details of compound

Show full details of unit in the Quantity field. If Kgs is typed in
compound unit Rate Per field, the Quantity field will display as 12
Kgs.250 grams.

By default, a warning message is displayed for

Warn on negative
negative stock balance. If you set it to No, the error
stock balance
message will not be displayed.

Allow use of expiry By default, the expiry batches in the list of active batches

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 batches for all stock during voucher entry are displayed. If you set it to No, expiry
items batches will not be displayed in the List of Active batches.

By default, the stock item balance up to the last

Show balances as voucher entry date appears. If you set it to Yes, it will
on voucher date display the Stock Item balance up to current voucher
entry date.

By default, the Godown details in rejection

Show Godown- in/out vouchers are displayed. If you set it
wise details to No, the godown details will not be displayed
in the rejection in/out vouchers.

Enable this option to display batch information of stock

Show batch-wise
items during voucher entry. If you set it to No, the
details
Batch-Wise details will not be displayed.

Payroll
Option Functionality

Allow cost centre allocation Enable this option to allow cost centre
in payroll vouchers allocation in the payroll vouchers.

Statutory
Option Functionality

Allow modification of tax details Enable this option to modify tax details
for VAT for VAT.

(v)REPORT: -
Tally is one of the most useful platforms for anyone who wants to get help for their
accounting and inventory management needs.

The accounting software gives the user the ability to generate sales reports. Given
below is the step-wise procedure to generate customer wise sales report in
Tally.ERP9:

 Open the Tally window

 Go to Display
 Select Inventory Books
 Select Movement Analysis

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  Select Ledger Analysis
 Select the customer you want to see
 The report is generated

Fig 1: Item wise Movement Analysis in Tally

Reports obtained with Tally are static and modification of data post report generation
turns to be a long and time-consuming process as we have to convert this data to
excel format. The report is also viewable for a single customer at one time. Where
you need multiple customers to view the reporting can become tedious. At times
Tally also becomes slow when you try and generate reports with lots of data.

EasyReports is a tool which comes with predefined reporting features as per your
reporting needs. EasyReports simplifies your report generating needs with its drag
and drop functionality.

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 Fig 2: Sales reporting dashboard in EasyReports

Fig 3: Party Item report in EasyReports

EasyReports gives its users the ability to generate reports in a wide range of
formats. Given below is the step-wise procedure to generate sales report in
EasyReports:

 Open the EasyReports main application.

 Go to Cubes

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  Select Sales
 Select Company
 Set Company Name and Date parameter
 The report is generated

EasyReports provides user with drag and drop functionality so that using a single
report you can generate multiple required reports and save them for later use. It can
also schedule your reports and automatically send you emails at the specified days,
dates and time.

- : -

PART- B E-FILING

CONTENT
SL NO. PARTICULARS PAGE

1. CONCEPT 22

2. DUE DATE OF SUBMISSION OF RETURN 23

3. DIFFERENT TYPES OF RETUERN 24

4. DIFFERENT TYPES OF IRT 24

5. REGISTRATION PROCEDURE 27

6. FORMET OF TOTAL INCOME 31

21
7. RETURN PROCEDURE 31

8. VALIDATION OF RETURN 33

1.CONCEPT: -

E-filing is the short form of electronic filing of income taxes. E-filing is when you
electronically file your income tax returns online for a particular year. This means you
no longer need to visit the nearest Income Tax Department's office to file your
returns physically. Instead, you log onto the internet and do the job.

While filling out the ITR form online, it is advisable to keep these documents handy
for below listed purposes:
General details

 PAN
 Aadhaar (Linked to PAN)
 Bank account details

Computing income from salary

 Salary slips
 Rent receipts for claiming House Rent Allowance (HRA)
 Form 16

Claiming deductions

 Interest certificates from savings and deposits account

 Insurance and home loan details
 Details about investments liable for deductions
 Any other proof of income (For e.g., Income from house property, income
from capital gains)

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Note: To be sure of all the liable deductions and exemptions in your tax liability,
consult a Chartered Accountant.

2.DUE DATE OF SUBMISSION OF RETURN: -

Income tax filing due dates for the FY 2020-21 (AY 2021-22)

CBDT has issued a circular on 9th Sep 21 extending the timelines for certain direct
tax compliances for AY 2021-22.

The due date for filing income tax returns is the date by which the returns can be
filed without any late fee or penalty. The taxpayers filing their return beyond such
due date will have to pay interest under section 234A and penalty under
section 234F.

(i) ITR Filing due date extension:

Category of Taxpayer Due Date for Tax Filing – FY 2020-21

ITR filing by taxpayers not covered under extended from 30th Sep 21 to 31st Dec
audit 21

ITR filing for Tax audit cases extended to 15th Feb 22

ITR filing for transfer Pricing extended to 28th feb 22

extended from 31st Dec 21 to 31st

ITR filing of Belated or Revised Return for Fy
March 22
20-21

(ii) Furnishing Audit Report:

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 Due Date for Tax Filing – FY
Category of Taxpayer
2020-21

Due date to furnish the audit report extended to 15th Jan 22

Due date to furnish the audit report for transfer

extended to 31st Jan 22
pricing cases

3.DIFFERENT TYPES OF RETUERN: -

There are three ways to file Income Tax Returns electronically:

1. Option 1 - Use Digital Signature Certificate (DSC) to e-File. There is no further

action needed, if filed with a DSC.
2. Option 2 - e-File without Digital Signature Certificate. In this case an ITR-V
Form is generated. The Form should be printed, signed and submitted to
CPC, Bangalore using Ordinary Post or Speed Post (without
Acknowledgement) ONLY within 120 days from the date of e-Filing. There is
no further action needed, if ITR-V Form is submitted.
3. Option 3 - e-File the Income Tax Return through an e-Return Intermediary
(ERI) with or without Digital Signature Certificate (DSC).

Note: The Digital Signature Certificate (DSC) used in e-Filing the Income Tax
Return/Forms should be registered on e-Filing application.

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4.DIFFERENT TYPES OF ITR: -
Income Tax Return (ITR) is a form in which the taxpayers file information about his
income earned and tax applicable to the income tax department. The department
has notified 7 various forms i.e., ITR 1, ITR 2, ITR 3, ITR 4, ITR 5, ITR 6 & ITR 7 till
date.

ITR 1
This Return Form is for a resident individual whose total income for the AY 2021-
22 includes:

 Income from Salary/ Pension; or

 Income from One House Property (excluding cases where loss is brought
forward from previous years); or
 Income from Other Sources (excluding Winning from Lottery and Income from
Race Horses)
 Agricultural income up to Rs.5000.

Who cannot use ITR 1 Form?

 Total income exceeding Rs.50 lakh
 Agricultural income exceeding Rs 5000
 If you have taxable capital gains
 If you have income from business or profession
 Having income from more than one house property

25
  If you are a director in a company
 If you have had investments in unlisted equity shares at any time during the
financial year
 Owning assets (including financial interest in any entity) outside India) if you
are a resident, including signing authority in any account located outside India
 If you are a resident not ordinarily resident (RNOR) and non-resident
 Having foreign assets or foreign income
 If you are assessable in respect of income of another person in respect of
which tax is deducted in the hands of the other person.
ITR-2
ITR 2 is for the use of an individual or a Hindu Undivided Family (HUF) whose
total income for the AY 2021-22 includes:

 Income from Salary/Pension; or

 Income from House Property; or
 Income from Other Sources (including Winnings from Lottery and Income
from Race Horses).
(Total income from the above should be more than Rs 50 Lakhs)

 If you are an Individual Director in a company

 If you have had investments in unlisted equity shares at any time during the
financial year
 Being a resident not ordinarily resident (RNOR) and non-resident
 Income from Capital Gains; or
 Foreign Assets/Foreign income
 Agricultural income more than Rs 5,000.
ITR-3
The Current ITR3 Form is to be used by an individual or a Hindu Undivided
Family who have income from proprietary business or are carrying on profession.
The persons having income from the following sources are eligible to file ITR 3:

 Carrying on a business or profession

 If you are an Individual Director in a company
 If you have had investments in unlisted equity shares at any time during the
financial year
 Return may include income from House property, Salary/Pension and Income
from other sources
 Income of a person as a partner in the firm.
ITR-4
The current ITR 4 applies to individuals and HUFs, Partnership firms (other than
LLPs), which are residents and whose total income include:

 Business income according to the presumptive income scheme under section

44AD or 44AE
 Professional income according to presumptive income scheme under section
44ADA
 Income from salary or pension up to Rs.50 lakh
 Income from one house property, not more than Rs.50 lakh (excluding the

26
 amount of brought forward loss or loss to be carried forward)
 Income from other sources having income not more than Rs.50 Lakh
(excluding income from lottery and race-horses)
Who cannot use ITR 4 Form?
 If your total income exceeds Rs 50 lakh
 Having income from more than one house property
 If you have any brought forward loss or loss to be carried forward under any
head of income
 Owning any foreign asset
 If you have signing authority in any account located outside India
 Having income from any source outside India
 If you are a director in a company
 If you have had investments in unlisted equity shares at any time during the
financial year
 Being a resident not ordinarily resident (RNOR) and non-resident
 Having foreign assets or foreign income
 If you are assessable in respect of the income of another person in respect of
which tax is deducted in the hands of the other person.
ITR-5
ITR 5 is for firms, LLPs (Limited Liability Partnership), AOPs (Association of
Persons), BOIs (Body of Individuals), Artificial Juridical Person (AJP), Estate of
deceased, Estate of insolvent, Business trust and investment fund.
ITR-6
For Companies other than companies claiming exemption under section 11
(Income from property held for charitable or religious purposes), this return has to be
filed electronically only.
ITR-7
For persons including companies required to furnish returns under section
139(4A) or section 139(4B) or section 139(4C) or section 139(4D) or section 139(4E)
or section 139(4F).
 Return under section 139(4A) is required to be filed by every person in receipt
of income derived from property held under trust or other legal obligation
wholly for charitable or religious purposes or in part only for such purposes.
 Return under section 139(4B) is required to be filed by a political party if the
total income without giving effect to the provisions of section 139A exceeds
the maximum amount, not chargeable to income-tax.
 Return under section 139(4C) is required to be filed by every –
 Scientific research association;
 News agency ;
 Association or institution referred to in section 10(23A);
 Institution referred to in section 10(23B);
 Fund or institution or university or other educational institution or any
hospital or other medical institution.
 Return under section 139(4D) is required to be filed by every university,
college or other institution, which is not required to furnish return of income or
loss under any other provision of this section.
 Return under section 139(4E) must be filed by every business trust which is
not required to furnish return of income or loss under any other provisions of

27
 this section.
 Return under section 139(4F) must be filed by any investment fund referred to
in section 115UB. It is not required to furnish return of income or loss under
any other provisions of this section.

5. Registration of Taxpayer on e-Filing website

1) Prerequisite for Individual Users: -
Before taxpayers start registration, ensure the following details should be hand-in-
hand.

1. Valid PAN
2. Valid Mobile Number
3. Valid Current Address
4. Valid Email Address, preferably your own

Registration Process
Perform the following steps to register as an 'Individual User':

Step 1 Visit the ‘e-Filing’ Portal https://www.incometax.gov.in/iec/foportal/

Step 2 Click ‘Register Yourself' button located at right side of the Home Page.

Step 3Select the user type as ‘Individual’. Click Continue

Step 4

Provide the following basic details:

PAN

Surname, First Name and Middle Name

Date of birth

Residential Status

Step 5 Click ‘Continue’

STEP 6

Fill in the following mandatory details:

28
 Password Details

Contact Details

Current Address

Click ‘Submit’

Step 7

After registration,
For Residents, a six-digit OTP1 and OTP2 will be shared on your mobile number
and email ID, specified at the time of registration.
For Non-residents, OTP will be shared on your primary email ID, specified at the
time of registration.

Step 8 Enter the correct OTP to complete the registration process

2) Prerequisite for HUF: -

The user must have the following mandatory details:

1. Valid PAN Card

2. Valid Mobile Number
3. Valid Email Address, preferable belonging to KARTA*

*Karta means senior most male member in the family. He is the person who takes
care of day-to-day expenses of the family looks after the family and protects the joint
family properties. No outsider or stranger can become a Karta.

Registration Process
Perform the following steps to register as a ‘HUF User’:

Step 1 Visit the ‘e-Filing’ Portal https://www.incometax.gov.in/iec/foportal/

Step 2 Click ‘Register Yourself’ button located at right side of the Home Page.

Step 3 Select the user type as ‘Hindu Undivided Family (HUF)’. Click Continue

Step 4 Provide PAN of the HUF*’, ‘Name of HUF*’, and ‘Date of Incorporation*’

Step 5 Click ‘Continue’

Step 6

Fill in the following details:

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 Password Details

PAN Details of Karta

Contact Details of Karta

Address of HUF

Click ‘Submit’

Step 7

After registration,
For Residents, a six-digit OTP1 and OTP2 will be shared on your mobile number
and email ID, specified at the time of registration.
For Non-residents, OTP will be shared on your primary email ID, specified at the
time of registration.

Step 8 Enter the correct OTP to complete the registration process

3) Other than Individual and HUF: -

The user must have the following mandatory details:

1. Valid PAN Card

2. Valid Mobile Number
3. Valid Email Address, preferably belonging to Principal contact person

Registration Process
Perform the following steps to register as an ‘Other than Individual and HUF User’:

Step 1 Visit the ‘e-Filing’ Portal https://www.incometax.gov.in/iec/foportal/

Step 2 Click ‘Register Yourself’ button located at right side of the Home Page.

Step 3

Select the 'User Type' as ‘Other than individual/HUF’ and select the 'Sub-User
type' as per the PAN.

Company

Body of Individuals (BOI)

Local Authority

Firm

Trust

30
 Association of Persons (AOP)

Artificial Juridical Person

Government

Click Continue

Step 4 Provide ‘PAN of the Organisation/Entity*’, ‘Organisation Name*’, ‘Date

of Incorporation*’.
In case of ‘Company’ user, select the ‘Type of company’

Step 5 Click ‘Continue’

Fill in the following details:

Password Details

Personal Details of Principal Contact

Contact Details of Principal Contact

Address of Organisation/Entity

Click ‘Submit’

Step 6 After registration,

For Residents, a six-digit OTP1 and OTP2 will be shared on your mobile number
and email ID, specified at the time of registration.
For Non-residents, OTP will be shared on your primary email ID, specified at the
time of registration.

Step 7 Enter the correct OTP to complete the registration process .

6.FORMET OF TOTAL INCOME: -

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7.RETURN PROCEDURE: -
STEP 1. Register yourself

To e-file your income tax return, you will have you register on the Income

Tax Department’s online tax filing site (incometaxindiaefiling.gov.in). You have to
provide your permanent account number (PAN), name and date of birth and
choose a password. Your PAN will be your user ID.

STEP 2. Choose how you want to e-file

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There are two ways of e-filing your income tax return. One is to go to the download
section and select the requisite form, save it on your desktop and fill all the details
offline and then upload it back on the site. Or you can choose to fill the form online
by selecting the quick e-file option.

STEP 3. Select the requisite form

ITR-1: For individuals earning a salary, pension, or income from property or

sources other than lottery.
ITR-2: For those earning capital gains. ITR 2A for those owning more than one
house but no capital gains.
ITR 3, 4 and 4S: Professionals and business owners.

STEP 4. Keep the documents ready

Keep your PAN, Form 16, interest statements, TDS certificates, details of
investments, insurance and home loans handy. Download Form 26AS, which
summarises tax paid against your PAN. You can then validate your tax return with
Form 26AS to check your tax liability.

If you earn more than Rs 50 lakh, from this year you will have to fill an additional
column —"AL" or assets and liabilities. You will have to disclose the value of your
assets and liabilities. Assets have to be declared at cost.

STEP 5. Fill form and upload

If you choose to fill the form offline, after you have downloaded the form and filled
all the details, click on 'generate XML'. Then go to the website again and click on
the 'upload XML' button. You will have to first log in to upload the XML file saved on
desktop and click on submit.

STEP 6.  Verify ITR V

On submitting your ITR form, an acknowledgement number is generated. In case

the return is submitted using digital signature, you just have to preserve this number.
If the return is submitted without a digital signature, an ITR-V is generated and is
sent to your registered email ID. The tax filing process is incomplete and ITR is
invalid unless your ITR V is verified. You can electronically verify or mail the signed
ITR V to the processing centre in Bengaluru within 120 days of filing the return.

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 8.VALIDATION OF RETURN: -
6 Methods to Verify Income Tax Return (ITR) Online & Offline.
Have a look at easy 6 methods to verify income tax returns by online and offline
methods.
Verify ITR Through a Pre-validated Bank Account

 Visit the e-filing portal (https://www.incometaxindiaefiling.gov.in/home) and log into

your account.
 Go to Profile Setting and click the option to pre-validate your bank account.
(Service only limited to certain banks)
 Select EVC as your ITR verification method to verify through your pre-validated bank
account.
 Once you successfully file your ITR, an e-verification code (EVC) will be sent to your
bank account registered mobile number.
 Enter this code for verification on the e-filing website .

ITR Verification Through Aadhaar OTP

If you have an Aadhaar card with your mobile number attached to it, you can also
verify your ITR using your Aadhaar card. Here’s how.

 Log into your income tax e-filing portal account.

 Choose Aadhaar OTP as preferred verification method while filing your ITR.
 Once the return is filed, the OTP will be sent to your Aadhaar registered mobile
number.
 Enter this OTP for verification on the e-filing website.

Verify ITR Through Demat Account Verification

If you have a Demat account, you can use it for verifying your IT return. Here’s how.

 Log into your e-filing website account.

 Go to the Profile Setting section and choose EVC using Demat Account under
verification mode.
 If your Demat account is pre-validated, you will receive an EVC (e-verification code)
to your Demat registered phone number after the ITR is filed successfully.
 Provide this code in the field for verification of your return .

ITR Verification by Using Net Banking Option

 Log in to your net banking account of the same bank that is added to your income
tax account.
 Click on e-filing option.
 You will be redirected to the e-filing portal of the Income Tax Department where you
can proceed to submit and verify your return.

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 ITR Verification Offline Through Bank ATM

If you are not comfortable with online ITR verification or want to do it physically, you
can do so by visiting the ATM of your bank. The facility is, however, available only in
select banks.

Here’s how to do it:

 Insert your ATM or debit card into the machine.

 Select PIN for e-filing option to proceed.
 The EVC (e-verification code) will be sent to your registered mobile number.
 Once you receive the EVC, log into your e-filing portal account and verify your
income tax return using the verification option “already generated EVC through Bank
ATM”.

By using these methods, you can easily file and verify your ITR online without having
to send physical verification like in the old day

-:-

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