Save the XML file to your desktop and then upload it on incometaxindiaefiling.gov.in, the I-T department website. Some websites also have provision for online payment of tax. Use of a digital signature (DS) will render the e-filing process complete without involving paperwork and visits to the ITO. In case a DS is used, the acknowledgement will be emailed to you. If you upload the file on the tax department’s website without the DS, the acknowledgement, called ITR-V, emailed to you will have to be submitted at an ITO within 15 days of downloading it. A DS can be acquired from any of the agencies authorized by the government for the job, including the private and government websites meant for filing tax returns.
E-filing is convenient—it saves time and can be done from anywhere. What is especially important is that the online method reduces or even eliminates the interface between the tax assessee and tax officials.
The websites
Among the major websites offering e-filing facilities are Taxspanner, Taxsmile and Taxshax. You can either take printouts of the relevant ITRs from these three websites and physically submit them or upload your XML file on the I-T department’s website. Taxspanner uploads the taxpayer’s file directly and emails ITR-V to him. With Taxsmile, you can submit the forms at any of its offices in the country. It will then forward it to the ITO.
All the three websites are secure and easy to navigate. The major difference among them is on two counts—the number of income sources covered and the process. Get clarity on the cost and features offered. The minimum cost package would normally be only for salary income. The advanced version might be required if you have income from other sources. The tax websites also differ in the way they ask for information and allow you to input figures. Taxshax gets most of the figures filled up in a single page. Taxspanner has a step-by-step guide and takes one piece of information on one page. Taxsmile offers both these options.
Use of DS raises the cost of e-filing. The amount of this increase varies across tax websites. A DS can be obtained from Taxsmile for Rs500. Apart from this, you will have to pay for the basic package. Your DS comes with a validity period, after which it has to be renewed. A DS from Taxspanner, for example, is valid for two years. This website offers a deal in which you can file returns for three years at a cost of Rs250 a year.
To get your DS from a tax website, download the relevant form from it, attach the required documents, such as your identity and address proofs, and courier them to the address concerned. The entire process of acquiring a DS may take around 15 days.
A tax return can also be filed from the government website, incometaxindiaefiling.gov.in/portal/index.jsp, meant for it. Your PAN (permanent account number) will work as the user name for registering at this website.
Should you go online?
Internet accessibility is growing, but it is still out of reach for many of the 40 million taxpayers. For those who have access to it and want to save time, the digital signature way looks ideal—you will be able to file the return in a few minutes from the comfort of your home or office. E-filing without the DS is almost the same as filing returns offline.