Essential Things You Need To Know About Efiling Tax

Web Online CA
Published on Jun 16, 2023

Earlier, people hired lawyers to fill their income tax returns, but now with the advancement of technology, efiling tax is introduced. Here is a quick guide to learn about income tax and other related procedures. An income tax return is a form that an individual must submit to the tax department. In this form, a person needs to submit proof of income. 

What do you understand by income tax efiling? 

Nowadays, it is easy to file income tax returns because of income tax efiling. efiling is a process in which individuals can submit their tax returns electronically, which means no paperwork is required and no need to hire lawyers for that; you can easily do it on your own in front of your system by sitting at your home. 

The popularity of income efiling is increasing day by day. According to the income tax department, the efiling process helps avoid delays, by which taxpayers can easily pay their taxes by sitting at home without any issue. With the help of the internet, you can easily do this process. 

What are the benefits of income tax efiling?

Income tax efiling not only saves the tax agency time but also saves money. Whereas less paperwork directly leads to fewer errors. With the help of tax preparation software, it is easy to update proper calculations, which means significantly less chance of mistakes and wrong entries. 

Most efile taxpayers receive acceptance and rejection within 48 hours of transmitting the tax returns. Acceptance means your documents have been received systematically, whereas rejection shows that the IRS does not accept them. In the rejection notice, you will receive information about what is missing in your application and what needs to be corrected to make it acceptable. 

If you efiled before the tax due date, but your application is rejected, you will get five day grace period for correcting it and resubmitting your return. 

What is the process of income tax efiling? 

First, taxpayers must visit the IRS website to submit their taxes. You can choose any tax preparation software for filing the return. If you want to hire tax professionals for that, you can do that, also. 

The last date for filing tax returns is the 15th of April, according to the fiscal year. The taxpayers can file anytime they want, 24/7, before the due date. 

Is it mandatory to file an Income tax return?

Yes, as per the tax laid down in India, it is compulsory to file income tax returns. If your income exceeds the basic exemption limit, you must submit income tax. If in case of any delay in filing returns, you will attract a late fee which will affect the chances of getting the loan and your visa process.

So delay in your income tax return can result in a penalty of up to 10,000 according to the rules of IT. 

So the above information is enough for you to learn about efile taxes india