Sunday, August 30, 2009

The Usefulness of Online Filing of IT Returns

Filing IT returns can more appropriately be called a duty than an annual custom. Come July – it is that time of the year, when salaried and non-salaried individuals get busy filing their IT returns and chartered accountants get busier enabling them to do so. Amidst all this, we owe a thought to one thing: we do most of our financial transactions ourselves; we are quite conservative on disclosing our financial details to anyone else; but we do not hesitate to engage with a Chartered Accountant (CA) to help us file our returns. We have etched in our black box that filing IT returns is a laborious task and at times can get confusing as well. More so, it is comfortable and secure to pay a small fee to a CA and get it done.

Studies reveal that most people who file IT returns change their CA every year. Then how are we breaking our customary conservatism to do it? Actually, we don’t know. We do it because we see people doing it! It’s simple! Or is it? Or have we not found a simpler way! The latter may actually be true. We feel we find in a CA – an exclusive confidant – who makes our lives easy! Is he exclusive to you? And is he actually a confidant?

Over the last decade, we have seen an outburst of activities that have gone online. Starting from the birthday cakes, bouquets and greeting cards to general needs and home appliances, the list of online engagements go unto buying houses and meeting life-partners online! Online commerce or e-commerce has made rapid strides. Managing most bank transactions online, keeping track of investment portfolio, demat accounts et al are now a few clicks away! And secure too. When transactions aplenty are happening online, it only becomes natural to extend and enable filing IT returns online.

Why should I? Well, reasons are just above and more so, when you have advantages like the ones that follow: You always wanted a personal and an exclusive engagement to file your taxes. Having an online account to file returns, confirms an exclusive and intuitive experience. As a tax-payer, it is your right and duty to understand your tax-structure. Online filing helps you understand your taxes while you file your returns. Well, you have complete control over your taxes; your deadline for filing returns the e-way is 11:59PM, July 31st while paper-returns need to be filed not later than 5PM. This means, you can file your returns any time of the day or night!

Filing returns online is approved by the Income Tax Department (ITD) which also recommends the initiative by giving an immediate online acknowledgement. As you fill the online form, any amount you still owe or due to you is calculated immediately and any pay-out to you by the ITD is done lot quicker than the same activity going through paper-way. You can monitor your ‘self-assessment account’ online that stores your entire payment history, statements, status of payments, returns, etc. For any reason, ff you still need it on paper, go ahead and print it!

Is it safe? Actually storing IT data offline on paper is more risky and vulnerable to theft and misuse! Online filing comes with Verisign-certification and uses a 128-bit encryption SSL module. In simple terns, online filing is completely secure and when filed through a digital signature, is 100% risk-proof. But I have not done it before! That’s the reason you should be doing it now! Online population for filing returns is steadily on the rise. Also a cause toward saving paper and the environment – create an account online and file your returns. It is easy, it is simple, it is secure, and it is unique! Happy e-filing!

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