Filing Returns Offline 2016

Only those with a taxable income less than R5 lakh in the previous financial year can file their tax returns offline; all others have to mandatorily e-file their income tax returns. Also, irrespective of the amount of income, anyone who is eligible for a tax refund has to file returns online.

If an eligible assessee decides to file her return offline, she can either download the relevant ITR form from the income tax website or she can collect it from the nearest income tax office. She has to write down all the details required in the form, and then submit it to the assessing officer concerned or to the help desk (these are called Aaykar Sampark Kendra). Along with the ITR form, she also has to fill up the acknowledgement form, which includes a summary of the ITR filed. The stamped copy of the acknowledgement form is given back to the assessee.

While a person with taxable income less than R5 lakh can choose between filing return online or offline, the former is easier. The online process not only makes things simpler by providing forms with pre-filled personal details, based on the previous year's ITR and Permanent Account Number (PAN), it also helps you maintain documents and allows you to access these through the e-filing account. Moreover, if you miss out on some information, the online software warns you about it. It also calculates the tax payable or any refund due based on the income and deductions filled in the return. Therefore, the chances of wrong calculation are minimised.

Filing returns online
You can e-file your return either directly on the income tax website (http://incometaxindiaefiling.gov.in/) for free, or you can use a private service provider's platform. The non-government sites offer different packages and plans, depending upon the number of income sources they cover and the process involved.

How to e-file using the government website: Over the years, the government website, too, has evolved. Earlier, the process was only partially online; now it is fully so, but you can do both. In the partial online process, you first need to download the relevant ITR form, and save it on your desktop. Fill the details offline, save it, generate an XML file and save that on the desktop. Then, if you don't already have a user ID and password, get these using your PAN. Once you have created an account, log in and click on the relevant form on the left panel and select 'Submit Return'. Browse to select the XML file that you had generated earlier, and click on 'Upload'. After you upload the XML file, acknowledgement details would be displayed on the screen.

In the fully online process, you don't have to download the form and fill it offline. You can directly login to the e-filing website with your user ID and password, fill the relevant form online and upload it.

How to file through a service provider: Till a few years back, most online return filing portals catered only to salaried individuals. However, now many of them offer to file all types of tax returns, be it related to income from salary, business or profession. If you want to use a service provider's platform, get clarity on the cost and features offered before making a choice. A simple ITR, for which all the information is available in a Form 16, can be filled with ease; little manual work is needed. You need to upload a PDF copy of the Form 16 and the software picks up the relevant details and fills the ITR form for you. While there are do-it-yourself options on private portals, if you need assistance, there will be a cost attached.

Before zeroing in on a service provider, look at the quality of the content on its website and whether it is authorised by the income tax department. You must remember that when you file your returns online, you are sharing important personal financial details, such as your income, savings and investments, bank account details, and so on. So, it is important to check the 'confidentiality and privacy policy' of the service provider. Choose a service provider after you are assured that your information will not be shared with others.