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A Detailed Guide to E-Filing of Income Tax Returns for Taxpayers

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What is an Electronic Filing (E-Filing) Income Tax? And Benefits of Electronic Income Tax Filing

A document known as an Income Tax Return is used by individuals to record information regarding their taxable income, as well as their expenditures, tax deductions, investments, and taxes. 

Even if there is no income to record, a taxpayer is still required to file a tax return because this document is used to disclose the previous year’s profits. 

This blog includes information about e-filing of income tax returns, the process of filing income tax returns electronically, the benefits of filing income tax returns electronically, and know more information on income tax return filing services in mumbai.

The Department of Income Tax now provides taxpayers with the opportunity to file their tax returns electronically (E-Filing). It is essential for a taxpayer to have all of the documentation required for the calculation and reporting of an income tax return before beginning to go over the processes that are necessary in order to e-file an income tax return.

What is an E File?

Electronic tax filing is referred to by its abbreviation, “e-filing.” The term “Electronic Filing,” or “E File,” refers to the process by which a taxpayer submits their Income Tax Return electronically using a website designated as an E Filing gateway. This indicates that you will not be required to go to the Income Tax Department office that is located closest to you in order to file your taxes. Instead, you will complete the operation by logging into your account on the website.

Process for E Filing Income Tax Return

Step 1: Enroll in the Electronic Filing System (E File Portal)

In order to submit an electronic filing of an income tax return, an individual must first register oneself on the E file portal. During the process of registering for E file Income Tax Return, the user is required to give their name, date of birth, and PAN card number. Following that, an individual will be given the opportunity to select a password, after which a user ID will be generated.

Step 2: The method of E-filing your tax return can be chosen (Income Tax Return)

There are two modes for submitting an E-file ITR: the first is an offline mode, and the second is an online E-Filing of ITR. You can choose whichever manner is most convenient for you. The entity is required to choose one of the available filing methods in order to submit an electronic income tax return (ITR).

Step 3: Choose the requisite form

ITR 1: This form is to be filled out by an entity if it is reporting income from sources other than the lottery, such as a salary, income from property, pension, or income from other sources.

ITR 2 is used for those who have filed for more than one house but do not have any capital gain. ITR 2A is used for those who have filed for more than one house but do not have any capital gain.

ITR 3, 4, and 4S are tax forms that are intended for professionals and business owners.

Step 4: Prepare to fill out the form by gathering all necessary documents in one place

An organization is required to keep track of all information, including details from Form 16, the TDS, an interest statement, PAN information, home loan information, and insurance details. An organization is required to download Form 26AS, which provides a summary of all the information relating to the tax that was paid against your PAN.

If an entity’s annual revenue is greater than 50 lakh Indian Rupees, then an additional column, labelled Assets or Liabilities, must be completed. Disclosure of any and all information concerning an entity’s assets and liabilities is required. You can find more information on https://www.incometax.gov.in/.

Step 5: Fill out the form and Upload

After you have downloaded the form and completed all of the fields, you will need to click the “generate XML” button in order to be able to complete the form without an internet connection. After that, go back to the website and click the option that says “upload XML.” In order to upload the XML file that is currently saved on your desktop, you will first need to log in, and then you will need to click the submit button. If the entity chooses to file its tax return online, they are required to check that all of the details they submitted into the ITR are correct by clicking the preview and submit button.

Step 6: Online Income Tax Return Auditing and Verification (ITR)

Once your ITR form has been successfully submitted, you will be given an acknowledgment number. You are required to maintain this number solely in the event that the return was submitted using a digital signature. If the return is submitted without a digital signature, an ITR-V will be generated and sent to the email address that you have registered with the government.

In an offline mode, once all of the procedures are finished, the taxpayer is required to finish verification by signing ITR V. The tax filing process is not complete if the ITRV is not filed. You have the option of either electronically checking the ITR V or submitting it to the processing center in Bengaluru.

Advantages of Electronic Filing of Income Tax 

  1. It will be of assistance to the company in lowering the overall error rate.
  2. Taxpayers will be able to save both time and money by filing their returns electronically.
  3. It will be helpful in preserving accountability on both sides; from the perspective of the taxpayer as well as from the authority of the government.
  4. Because it will no longer be a time-bound process, electronic filing of one’s income tax return (ITR) can be done in a way that is both convenient and flexible.
  5. E-filing ensures that the taxpayer will receive delivery confirmation, which can be used as evidence in the event that there is a disagreement over the return.


E-filing of ITR (Income Tax Return) will make it possible for taxpayers to file their income tax returns during their free time. This is because the process will be carried out online, and all document verification and uploading will take place on an online platform. This will save the taxpayer as well as the government authority money and time.