Why E-Filing of Taxes Makes Sense

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Editor’s note: This blog post written by ‘Sanjay Kapadiaa, CEO, TaxSum.com

e-filing-of-tax-9728951INDUSTRY statistics reveal that close to 40 lakh people filed taxes online last year using government portals and private websites. This year, the number is close to 2 crore people filing taxes online. As of 31 March 2011 close to Rs. 93 lacs have been received by the Indian government by way of tax returns through e filing. Government of India has been promoting e-compliance for better governance and regulating the legal compliance in various fields. Under this concept the Ministry of Corporate Affairs carried out complete automation of documentation and filing under the Companies Act, 1956. The Ministry of Finance, Department of Revenue has also taken proactive steps for tax compliance and thereby at present allotment of PAN, TAN and almost the entire filing of Tax Deducted at Source returns have been made online through e-filing.

What are the benefits of online tax filing?

1. One of the biggest advantages that online filing provides you is the convenience. You can file your taxes anytime that you want even with the comfort at your home. You do not have to take an appointment of tax professional in order to get your returns filed online and thereby you save time and cost on commutation, communication and traveling. 2. If return is filed online from technically (technologically) up-to-date, most secured and legally full proof (fully compliant) website, it can be tax efficient, since the charges for online filing are very meager (say for eg. 189/- in case of taxsum.com) as compared to tax professional charges of around Rs. 1,000/- or more. 3. Filing online is safe and secure – your account is encrypted, and protected by your chosen password and a unique User ID that’s sent only to you. 4. It’s convenient and can be used at any time and you get an instant acknowledgment as soon as tax department receives your tax return. 5. Online tax returns are processed faster than paper returns and hence refunds are paid to you more quickly than if you file paper returns. 6. The department stops accepting the paper returns daily at 6.00 pm. While in case of online filing, there are no time limit restrictions, since returns can be filed round the clock.

7. Most important it is environment friendly, since no paper is required to be submitted. More & more people file their return online, would result in saving of large number of trees.

8. Acknowledgment can be stored in soft form for ever on the website under your control (user id & password).

The Taxsum Advantage

To capitalize on the growing market opportunity and to make the process of tax filing faster, simpler and more convenient for people, Taxsum.com was launched in 2011 with the aim of making submission of tax returns a customer friendly process.

A few key USP’s of TaxSum.com are:

1. Comprehensive: Taxsum.com provides a solution for all categories of income tax return filing from ITR1-ITR6. TAXSUM is an online tool for all tax payers to compute their taxable income, tax payable / refunds on various sources of income (including Business Income) and plan investment options for lawfully saving tax.

2. Multi Language: Taxsum also offers its services in Hindi to ensure that a larger audience is tapped for online tax filing through the portal.

3. Special Gateways: TaxSum.com is the only portal which provides special gateways designed separately for:

a. Retired Personnel b. Insurance Advisers/ Commission Agents c. Teachers/ Professional d. Government Employees

4. Security: Taxsum is hosted in the most secured ISO 27001 certified environments. TaxSum.com is the only service which is fully compliant to the security regulations prescribed and applicable to the financial data of users of TaxSum.

5. Mobile application: Taxsum.com provides a unique application that allows users the facility of filing e-returns through mobile devices.

6. Complete solution for all tax payers: All tax/financial data for individuals and family can be stored under one secure login id, users can compute taxes under different heads, users can procure their own digital signature from Taxsum.com for e filing.

7. Digital Signature: Secure Login ID provided will ensure that they can file taxes from any part of the world using this signature, without being limited to one single computer. Taxsum provides users the option of filing taxes with or without a digital signature as well

8. Specialized service for B2B service providers: Taxsum provides tax professionals the option of computing income and filing the tax returns of their clients using this portal. Tax professionals can also prepare detailed Tax Audit Reports in Form 3CA / 3CB & 3CD through pre-defined annexure for details to be submitted therein.

About the Author:

Mr. Sanjay Kapadiaa is the CEO at TaxSum.com. a comprehensive online tax-filing portal in India developed by SNK ETax Solutions Ltd. MR. Kapadiaa is a science graduate in Statistics from University of Mumbai and is practicing as a Chartered Accountant since 1987 at Surat and a visiting external professor to the MBA & DBIM students of various universities.

Mr. Kapadia also contributed write-ups, articles in various magazines of BCA, Chamber of Tax Consultants, Newspapers etc. He has presented technical papers and chaired Technical Sessions at various conferences and seminars of ICAI and Tax Bar.