Common Myths – Tax returns/ ITR/ Online Return filing

While we all do tax planning and have become well versed with many provisions of the I-T Act that are relevant to us, there are many beliefs that may not necessarily be facts. These are perceptions that have been formed through opinions of friends, colleagues and other self-professed experts, who themselves have not grasped the provisions of the I-T Act properly. The following are some of the myths and realities about tax. Myth#1: TDS has already been deducted by the employer, so there is no need to file the return This is also not so true! Even if the entire tax has been deducted at source by the employer and there is no more tax liability, you still need to file your tax return. Myth#2: Filing tax returns is a complex and cumbersome process. This is also not true. Contrary to popular belief, preparing and filing tax returns is actually quite simple, provided you have done your homework before filing the return. The government has notified specified forms which can be used by an individual to file tax returns. A simple form (ITR1), for instance, is prescribed if the individual only has salary income and interest income. However, an individual with income from house property or capital gain will need to file an ITR 2. An individual can file income tax return online also. “However, the acknowledgement form generated online (ITRV) will need to be submitted manually to the tax authorities. In case you have a digital signature, then you do not need to file the ITRV. Myth#3: Returns filed electronically are more prone to scrutiny. This is purely a fictitious perception. Every year income tax department pull out random list of people to scrutinize. Whether the person has filed income tax returns electronically or through traditional paper filing method have no bearing on this list. In fact, digital filing can help in automatically tallying Returns Particulars filed by you and that filed by your Employer, Banks and other Financial Institutions. Thus, it would be incorrect to say that Returns filed electronically are more prone to scrutiny. Myth#4: e-filing is unsafe This is again a generic concern with anything related to internet. In fact e-filing is safer than paper filing as your return is going directly into Tax Authorities’ Computers. Also, check the trust worthiness of the site you choose to prepare your income tax return. Conclusion Using the e-filing process you can file your tax returns easily with a few clicks and following a simple process, any time of the day and without any hassles. Using this technology all you have to do is filling the form and submit it, online or offline. Tax Returns for Financial Year 2010 -11 (March 2011) has started.  Just mail us Form16/ Salary Certificate and details of other income, at . We would take it from there to file your return of income. provides complete online taxation solutions for individuals ( Tax Returns + Tax Support + Tax Planning ) – please see this – Services Offered. Providing Complete Online Tax Solutions for Individuals, Not Just Returns .

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