Ever wondered what can happen to your visa application, if you fail to file your IT return? While the answer is simple, rejection is always heart-breaking. Yes, filing income tax returns is that critical for every citizen as it stands as a proof of clean tax record for any individual or organization. While filing returns is imperative, there are many myths associated with the process of filing the Income Tax returns.
ClearTax, a homegrown startup, aims to simplify this process by providing the customers with an easy-to-use cloud-based e-filing platform. Funded by Y-Combinator, the start-up has a strong and growing userbase in the country, and over the last four years, has gained leadership among e-filing firms.
Today let’s look at the benefits of e-filing your Income Tax Return. The number of paper returns filed is declining each year, for those who may be unsure – let’s dispel some myths around e-filing.
Here are some common myths around e-filing:
‘E-filing is not mandatory’ – There is a significant number of returns which are being e-filed and gradually the Income Tax department is trying to adopt online as a medium for filing returns. Additionally, based on the latest guidelines from the Income Tax department, e-filing your return is mandatory in any of the following cases:
- Your gross total income is more than INR 5,00,000
- You want to claim an income tax refund (Those who are over 80 years old and are filing ITR-1 or ITR-2 can still file a paper return to claim a refund)
- ITR -3, 4, 5, 6, 7 have to be mandatorily e-filed
‘E-filing is complete when I have submitted my return online’ – Currently you are required to send a signed copy of your ITR-V to CPC, Bangalore failing which you may have to file your return again. The Income Tax Department is expected to eliminate this process for those who hold an Aadhaar card (further details awaited). Submitting your ITR-V is an important and critical step to the completion of the return filing process.
‘I can’t self e-file, I’ll need a CA’ – ClearTax takes the complex out of e-filing, you’ll sail through self e-filing! You’ll be filing up only the relevant sections applicable and your experience will be clutter free. ClearTax also allows you to upload your form 16; it can extract your TDS details directly from the Income Tax Department website. E-filing is free on ClearTax whereas your local CA will charge for filing even the simplest return.
‘E-filing is complex and I am worried I’ll make a mistake’ – The chances of making an error are almost negligible when you e-file. Your return is validated electronically and apparent mistakes are pointed out to you. On ClearTax you don’t need to choose what form applies to you – we do that for you basis the data entered by you!
‘IT department will communicate with me with the email id I used for e-filing’ – In your ITR you have to specifically mention the email id where you want the department to correspond with you.