Have you tried e-filing of your income tax returns? Worried about the myths and doubts around it? Find out the truth behind the popular myths of income Tax E-filing and complete your returns within ten minutes and just a few clicks.
The Income Tax Department of India introduced e-filing of ITR (Income Tax Returns) to make it convenient and easy for millions of tech-savvy Indians to file their returns. But, reports state that just 16% of all taxpayers opt for this method, while the rest still stick to the old paper form route.
With widespread of internet access even in rural areas of the country, most taxpayers are reluctant to switch over to the hassle-free, time-saving, and convenient method of filing returns.
The reason for this – The myths and misconceptions surrounding e-filing! It’s time to clear the air. Here, in this article, you can find the top myths of Income Tax E-filing and the truth behind it.
Let’s get started.
Myth 1: Only people with digital signatures can e-file the ITR.
Truth: You require a digital signature only when you file the income tax return completely online. However, if you don’t have a digital signature, you can go ahead, e-file your return, and then send a signed copy of the ITR V Form to the office of the income tax department in Bengaluru.
All you have to remember is to send the signed ITR V form by post within 120 days of submitting your e-returns. This makes it convenient for people without digital signatures to submit their e-returns.
Myth 2: If I submit my ITR via e-filing, I’m likely to come under closer scrutiny by the Income Tax Department.
Truth: This is an urban myth, and there’s no truth behind this claim. Every year, income tax officials select a random list of people to scrutinize based on certain predefined criteria. This has nothing to do with whether you have submitted your returns electronically or submitted via traditional paper filing methods.
Myth 3: I have to pay for e-filing, but if I submit my returns physically, I don’t have to pay anything.
Truth: The fact is that e-filing via the government portal is free and can be used by any taxpayer for no additional cost. But the catch here is that this portal is a bit difficult to operate and navigate for new users.
However, several private e-filing portals help you file your Income Tax returns online in a user-friendly way. You have to pay a small fee for this service.
Alternatively, you can employ a registered chartered accountant to help you file your e-returns. But, this is a bit more expensive than using an online portal. So, it’s highly recommended that you file your returns using any of the online portals.
Myth 4: If I file my returns electronically, I cannot make any reversals.
Truth: Wrong. When you e-file your tax returns, you can make any reversals that you do with traditional methods. Similarly, all online e-file portals help you to file revised tax returns quickly and for no additional charges.
Myth 5: E-filing is not secure, and there are chances of my data getting misused.
Truth: There’s no shred of truth behind this myth. All popular e-filing portals make use of the latest security and encryption methods to ensure that your tax return forms are completely secure. This means that there is little to zero chances of your data getting hacked.
Also, the government portal makes use of the latest encryption software to ensure that your data is entirely secure. So, you can put your security concerns to rest.
E-filing is indeed a boon for busy, young professionals and business people. With just a few clicks, you can now submit your income tax returns from anywhere and at any time. And, once you try it out, you’ll never go back to the old, time-consuming paper filing.