Filing income tax returns is compulsory for anyone whose gross total income exceeds the exemption limit. While the Income Tax Department allows both manual and efiling of income tax return, the online process is much easier and faster. Moreover, it allows ITR filing anytime and anywhere. As a result, the facility to file ITR electronically has transformed how taxpayers fulfil their tax obligations. The following sections will explore various benefits of filing the ITR online.
Return Filing Anywhere and at Any Time: The convenience of efiling of income tax return is a major advantage it provides. Any taxpayer with internet access can submit their ITR anytime from any location. Moreover, the efiling process lets taxpayers digitally enter their information, eliminating the need for manual processing and paper forms. Therefore, the facility saves time and effort by accelerating the filing process.
Immediate Acknowledgement: The digital process of filing income tax returns provides taxpayers with an immediate acknowledgement. It guarantees they have correctly filed the returns, enabling taxpayers to track the filing progress without hassle or confusion.
Faster Refund Processing: Taxpayers can process tax refunds more quickly with efiling of income tax return. Automated refund processing and digital submission systems accelerate verification and assessment, allowing eligible taxpayers to receive their refunds more quickly. Furthermore, there is no need to mail the ITR to the Income Tax Department physically.
Electronically Save ITR for Future Reference: Taxpayers who file their income tax returns electronically can store a digital copy of their ITR for future reference. As a result, they can track their tax payments and access their previous returns to retrieve and review the information if necessary.
Built-in Error Checking and Correction: Taxpayers can use built-in error-checking and correction tools to verify the accuracy of their ITR. To reduce the risk of submitting incomplete or wrong returns, these features automatically identify inconsistencies or errors in the file, such as improper computations or missing fields, encouraging users to take prompt action. By eliminating the requirement for manual data entry and calculations, the efiling process reduces the chance of human error and unclear handwriting, producing error-free and more accurate tax returns.
Privacy and Security: The efiling of income tax return encrypts data, ensuring confidentiality and privacy of the identity and financial information. Encryption procedures and secured databases securely store personal data and tax returns, guaranteeing privacy and protecting data from unauthorised access. Electronic submission of ITR offers a complete defence against identity theft and fraud through strict security controls and authentication processes. Reduced need for paperwork also minimises the possibility of theft or loss.
Cost-Saving Advantages: Since the facility to file ITR online is free of cost, taxpayers can eliminate the need for additional costs related to paperwork and hiring tax professionals. GST registration and ITR efiling also save money on postage and paper forms, reducing the overall cost of printing, handling, and distributing physical documents. The online ITR filing platform has a user-friendly interface, allowing taxpayers to effectively file their ITR without employing tax consultants, thus saving money for their services.
Reduced Interest and Penalties: The easy and quick process allows taxpayers to file their income tax returns on time, reducing the need to pay penalties and interest for late ITR filing. Taxpayers filing the ITR electronically can ensure timely submission and tax payment, reducing the risk of missing deadlines. Moreover, they can calculate their tax obligations more accurately, lowering the chances of interest costs and penalties. Overall, electronic ITR submission ensures compliance and results in cost savings by reducing unnecessary interest charges and fines.
Status Tracking: Earlier, taxpayers received a confirmation of their ITR filing through post only, which required a lot of time and patience. On the contrary, taxpayers filing their ITR online have the option of tracking their ITR status through the portal. It allows them to check their ITR and refund status in real-time.After looking at the benefits of filing ITR online, it is safe to conclude that efiling of income tax return is much easier, faster, and safer than the manual process. The entire purpose of offering this facility is to make a taxpayer’s life easy, leading to a significant increase in tax filings recently. It ultimately results in better government spending and direct economic benefits in the long run.
