E-Filing of Returns

An Overview of the Process of E-Filing of Returns for ITS Forms 1, 2, 3, 3B and 2F

What is E-Filing

The process of electronically filing Income tax returns through the internet is known as e-filing.

It is mandatory for companies to submit the Income tax returns electronically for AY 2006-07. Any company return submitted without a e-

filing receipt will not be accepted. E-filing is possible with or without digital

signature.

Types of E-Filing

There are three ways to file returns electronically

Option 1: Use digital signature in which case no paper return is required to be submitted

Option 2: File without digital signature in which case paper return has to be submitted

Option 3: File through an e-return inter-mediary who would do efiling and also file the paper return on behalf of the taxpayer

Types of E-Filing

E File with Digital Signature

E File without Digital Signature

E File through e-return

intermediary

No Paper returnPaper return

Income Tax Department Local Offices

http://incometaxindiaefiling.gov.in

E-Filing Process

E-Filing – Relevant Laws and Rules

Vide Notification No. 128/2006, dated 1-6-2006 S.O. 848 (E), Form 2F was notified.

Vide NOTIFICATION NO. 189/2006, dated 24-7-2006 Forms 1, 2, 3, 3B were notified

Vide Notification No. 253 of 2004, dated 30th Sep., 2004 S.O.1073(E), Electronic Furnishing of Return of Income Scheme, 2004 was notified for efiling of returns: An eligible person may, at his option, furnish his return of income

which he is required to furnish under sub-section (1) of section 139 of the Act for the assessment year 2004-05 and any subsequent assessment year, to an e-Return intermediary.

Digital signature, e-return, e-return intermediary were defined in this scheme

Who can file E-Returns

Individual/HUF not having business income, capital gains or agricultural income and not claiming relief u/s 89 and one house property

OptionalForm 2F

Specified employer means a company, firm, an association of persons or a body of individuals (whether incorporated or not), a local authority and every artificial juridical person with certain exception

OptionalForm 3B

All Non Corporate assessees a. not claiming exemption under section 11, andb. not having income from business or profession

OptionalForm 3

All Non Corporate assessees a. not claiming exemption under section 11, andb. having income from business or profession

OptionalForm 2

All companies other than those claiming exemption under section 11

MandatoryForm 1

Who can fileEfilingForm

How to File an e-Return

Web Portal Overview Hosted at Income tax Department. It is the web site the Income Tax Payer sees. Accepts XML file for further processing of Returns. Allows end users to Register, Download various utilities to

help in e-filing, and upload the e-returns. It’s the one-stop for anyone requiring to file e-Returns.

Focused message On

E-Filing

Updates for ITaxPayers

Menu focusingOn Forms

RegisteredMember

Login

New MemberRegistration

Sub Menu for FormsThis shows the Sub-Menu when clicking

On Form 1

Other Services Can Now be Accessed

from Here

Simple Steps to e-Returns

This is for all members who have not yet registered with us.

New Members must Register themselves first.

Simple Steps…User Registration

Form after basic validation of the User Registration

This allows end user to update details

Upon Successful User Registration you will get the message

“User Created”

Simple Steps…Login

Login to the portal using your username and password

This combination will be unique to you

For security purposes please use a password with minimum 6 characters which are alphanumeric

Simple Steps…Menu

This menu will appear on the left navigation after Successful Login

Click on Downloads to be taken to the download page.

Simple Steps…Download

The Download page allows you to download various Client utilities that Income tax Department offers to the Tax Payers.

This will come after Login. Click on the Download button to start the download.

Simple Steps…Forms

The site offers three Free applications which can be used to fill up the forms

Any one of them may be used as per convenience

The formats offered for Form 1 and Form 3B are .exe (Windows

Application) .Xls (Microsoft Excel)

Windows Application(.EXE)

PDF Application

Excel Application

Simple Steps…Forms

This is a sample snapshot from the Windows Application

This application allows you to enter data, save partially, export to print, and generate XML

It has a pre-requisite software which must be installed on your computer. This pre-requisite software is also available free from the e-Filing web site.

Simple Steps…Forms

The Microsoft Excel version of the Form allows you to enter the data required to be filled in.

Allows you to save, export to XML.

Has a Three Step Process: Validates the input Generates a file called an SRF

File (.srf extension) Has a separate File Validation

Utility which accepts the .srf as input and generates the XML file as the output.

Embedded Excel Validator

Simple Steps…XML Generation/Validation

Either of the applications listed earlier, or other applications based on Income tax Department’s XML Schema can be used to generate the output XML File.

This XML file will be around 100 KB in size

It will have a .xml extension. Upload the XML file to the e-

Filing server.

Simple Steps…Upload XML

Click on Browse Locate the Valid XML

from your local computer’s hard disk or where ever you have saved it.

Click ‘Upload’ to upload the XML to the e-Filing Server.

Simple Steps…Receipt

The system will automatically verify the XML you have uploaded

It will generate a Provisional Acknowledgement

You may print the same for your records

Provisional Acknowledgement NumberGenerated. You May Print this.

Supporting Tax Payers

Web Query through e-mails : Provision is being made to allow registered users to seek replies to queries via e-mail.For this reason, a valid e-mail in the user profile is a must.

Help Module on Homepage: Help Modules are available on the Homepage itself, and are being regularly updated.

FAQs: Frequently Asked Questions are a set of questions that the end user typically may seek answers to. A set of these are available at the web site, and are also being regularly updated.

Benefits to Tax Payers

Anywhere-Anytime Filing No Personnel Interface Quick Processing Direct Credit of Refunds Return Tracking Permanent Records

Thank You