Posted at: Aug 3 2015 2:01AM
Amol Mishra
“Income tax returns are the most imaginative fiction being written today,” says, Herman Wouk, an American author. As soon as we talk of income tax returns, somewhere down the line, there is a strain in the brain. Well, not anymore, because you can file the return online now.
Earlier, one had to physically file the returns, tedious paper-work was involved and all in all, filing income tax returns was a very time -consuming process. Keeping this difficulty of the public in mind, Government has taken a step by starting e-filing of income tax returns.
What does e-filing of income tax returns mean?
E-filing of income tax return means filing income tax return electronically using internet from anywhere, anytime. It is mandatory to e-file the income tax return if the total income in the financial year is more than Rs 5 lakh. Income tax return can be e-filed in three ways, the first way is by digitally signing the Income tax return verification acknowledgement (ITR-V), second way is by signing and sending hard copy of ITR-V to CPC, Bangalore and third way is by using the new system of electronic verification code.
Taxpayers filing returns electronically without using digital signatures are required to send the signed copy of ITR-V acknowledgement to CPC, Bangalore within 120 days of filing the return. Taxpayers who have signed digitally are not required to send the ITR-V to CPC. Moreover, taxpayers can now file their income tax returns without any headache of sending the same to CPC, Bangalore using EVC i.e Electronic Verification Code. EVC means a code is generated for the purpose of electronic verification of the person furnishing the return of income. EVC will be a unique number linked to assessee’s PAN. It cannot be used for filing return of income of any other PAN. One EVC can be used to validate one return, irrespective, of assessment year or type of return. Taxpayers can generate EVC by any of the four methods, viz through net-banking, through Aadhaar number, through ATM or through e-filing website of income tax department. Let us understand these methods in detail:
Electronic verification code through net-banking: In this case, some specified banks registered with Income-tax Department provide direct access to the e-filing website to their accounts holders. By clicking on e-filing option, account holder will be redirected to the e-filing website where he can generate the EVC. EVC generated will be sent to the registered e-mail id and mobile number of taxpayer, which can be used to verify income-tax return.
Through Aadhaar number: Taxpayer can link their Aadhaar number with their PAN on e-filing website to generate the EVC. Once the Aadhaar number is linked to PAN, “one-time password” (OTP) will be generated and sent to the taxpayer’s registered mobile number.
Through ATM: All taxpayers can generate EVC through ATM only if ATM card of taxpayer is linked to PAN validated bank account and bank is also registered with the income-tax department. Taxpayer can access ATM of registered bank using his debit/credit card. The bank will communicate the request to e-filing website which will generate EVC and send the EVC to assessee on his registered mobile number.
Through e-filing website of I-T Dept: An assessee can also generate EVC by using e-filing website of Income-tax Dept. (i.e. www.incometaxindiaefiling.gov.in). However, this facility is available only to the assessees having total income of Rs 5 lakh or below and who are not claiming income tax refund.
EVC verification is an optional process. If the taxpayer wants, he can continue to send ITR-V physically to CPC, Bangalore.
E-Filing has definitely elucidated the efforts of taxpayers as it is more accurate due to various cross checks performed electronically, which is missed in physical return filing. It facilitates faster processing as it is computer based, more secure than paper-based filing as there are lesser chances of loss of data and the best thing is you can e-file from anywhere, anytime as per your convenience.
Albert Einstein once said, “The hardest question in the world to understand is the income taxes”. Well, not anymore.
The author is Head of Tax, myITreturn.com. The views expressed in this article are his own