E-tax filing system

E-tax filing system. Electronic filing is the process of submitting tax returns over the Internet using tax preparation software. The relevant tax authority, such as the IRS, CRA or the CBDT (In India) pre-approved this.

E-filing has manifold benefits which have made this system of tax preparation increasingly popular in recent years; the taxpayer can file a tax return from the comfort of his or her home, at any convenient time, once the tax agency begins accepting returns.

Procedure to file E-tax (In India)

  1. Register yourself

To e-file your income tax return, you will have you register on the Income Tax Department’s online tax filing site (incometaxindiaefiling.gov.in). You have to provide your permanent account number (PAN), name and date of birth and choose a password. Your PAN will be your user ID.

  1. Choose how you want to e-file

There are two ways of e-filing your income tax return. One is to go to the download section and select the requisite form, save it on your desktop and fill all the details offline and then upload it back on the site. Or you can choose to fill the form online by selecting the quick e-file option.

  1. Select the requisite form

ITR-1    : For individuals earning a salary, pension, or income from property or sources other than lottery.

ITR-2    : For those earning capital gains. ITR 2A for those owning more than one house but no capital gains.

ITR 3, 4 and 4S: Professionals and business owners


  1. Keep the documents ready

Keep your PAN, Form 16, interest statements, TDS certificates, details of investments, insurance and home loans handy. Download Form 26AS, which summarises tax paid against your PAN. You can then validate your tax return with Form 26AS to check your tax liability.

If you earn more than Rs 50 lakh, from this year you will have to fill an additional column —”AL” or assets and liabilities. You will have to disclose the value of your assets and liabilities. . Assets have to be declared at cost.

  1. Fill form and upload

If you choose to fill the form offline, after you have downloaded the form and filled all the details, click on ‘generate XML’. Then go to the website again and click on the ‘upload XML’ button. You will have to first log in to upload the XML file saved on desktop and click on submit.

  1. Verify ITR V

On submitting your ITR form, they generate an acknowledgment number. In case the return is submitted using digital signature, you just have to preserve this number. If the return is submitted without a digital signature, an ITR-V is generated and is sent to your registered email ID. The tax filing process is incomplete and ITR is invalid unless your ITR V is verified.


Procedure to file E-tax (In US)

E-tax filing system. Taxpayers can file their returns directly on the Internal Revenue Service (IRS) website, using IRS free file, if their adjusted gross income for the tax year is $66,000 or less. While the IRS has partnered with many companies to provide electronic filing to individuals and businesses, it does not endorse or approve any particular software for IRS e-file.

A taxpayer also has the option of filing the return himself using tax preparation software with e-filing properties, or can hire the services of tax professionals who also use the software to file an individual’s or business’ tax. A benefit of e-filing is that the tax filer receives a confirmation or rejection notice within 24 hours of transmitting the electronic documents. The confirmation is proof that the documents have been received and is in process, while the rejection is notice to the taxpayer that his or her return has not been accepted by the IRS. The rejection notice will include information on what needs to be corrected on the return so that it is acceptable. In addition to the prompt confirmation notice, since e-filed returns can be processed much faster than paper returns, the taxpayer can generally expect a faster tax refund, if applicable.

The IRS recommends that taxpayer e-file their taxes themselves only if they are comfortable doing their own taxes.

Electronic filing is not for everyone though; taxpayers who have not approved to use this system must file their tax returns by paper. Examples of people who are not eligible for e-filing include individuals who are:

  • Married filing separately, and living in a community property state
  • Filing before e-file begins on January 15 or after e-file ends on October 15
  • Filling a tax form that cannot be electronically filed
  • Claiming a dependent that has already be claimed by someone else

Procedure to file E-tax (Canada)

In Canada taxpayers can file E tax returns through using netfile.

NETFILE is an electronic tax-filing service that allows you to send your individual income tax and benefit return directly to the Canada Revenue Agency (CRA) using the Internet and a NETFILE-certified software product. It streamlines the tax-filing process.·

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