FAQs for Filing E-Income Tax Returns in India

• The Income Tax Department in the Ministry of Finance administers the tax system for the government of India. It has evolved from the time when kings collected taxes in the form of coins and cattle, to the computerization of processing services in 2002. Taxpayers can now electronically file their income tax returns. The Tax Department provides detailed instructions in the form of FAQs for newcomers to e-filing (see Resources). An edited subset is listed here.

Can Anybody File an Income Tax Return Online?

• Yes. All four categories of taxpayers -- individuals and families, firms, companies and trusts -- can electronically file.

Do You Need to Go Through a Tax Preparation Service?

• No. However, seek assistance if you are new to computers.

What Do You Need to Get Started?

• You need a personal computer system with Microsoft Excel software and a PDF reader; a copy of last year's tax return; bank statements showing interest payments; employer-issued tax deducted at source (TDS) certificates; and copies of savings certificates and deductions.

Is the Data Protected?

• Yes. It is protected by Secure Sockets Layer (SSL) technology. Nobody can access the data without authorization.

How Do You Complete the Form?

• Download the appropriate form and the Excel utility from the e-filing site (see Resources). Follow the instructions on the form. The utility software will convert this into an XML file for uploading.

How Do You Sign the Form?

• There are two ways to sign the form. You can submit the return using a digital certificate issued by a Certification Authority (CA) and signed with the CA's private key. A digital certificate typically contains the owner's public key, the owner's name, expiration date of the public key, name of the issuer, serial number of the certificate and the digital signature of the issuer. You do not have to mail a separate paper copy. If you cannot digitally sign the return, mail completed Form ITR-V to "Income Tax Department Central Processing Center, Post Bag 1, Electronic City Post Office, Bangalore 560100, Karnataka, India" within 30 days after you electronically submit it. If you do not digitally sign the form and do not return the Form ITR-V, the return is incomplete.

How Do You Know if the Return Has Been Received?

• The e-filing system will issue a temporary acknowledgement after the form is uploaded. After submitting the digital signature or on receiving Form ITR-V, an email acknowledging receipt will be sent to you.