Tax is a mandatory contribution from all citizens of the country. It is meant for the people who earn money either from business or earns individually within their jurisdiction. Almost all progressive countries have imposed a tax on their citizens for their benefits. Income Tax is collected to raise funds to provide public services and government compensations.
Millennials are multitasking. It becomes tedious for them to deposit income tax returns physically. In today’s world, technology is everywhere and we cannot imagine our lives without digitization and AI-driven devices. Developers have created Income Tax Software to automate certain operations to make work easier and faster. So the manual tasks that were all related to file income tax returns earlier, have gradually lost importance.
9 Savvy Tricks for Fastest Income Tax E-Filing
Income tax software are designed to calculate our returns and they have the ability of automating filing operations of all our income tax returns online, thereby reducing the need for human intervention. For the ease of income tax filers, we have come up with a complete list of top 9 tips for making e-filing of taxes more efficient. Find them below –
- Auto Return Form Generation
In late 2018, the Indian government has introduced the GST policy. It has started a New Return System to facilitate the E filling procedure. Auto-return form generation simplifies the selection of various return forms according to the income or revenue of a particular individual or firm.
- Reverse Tax Calculator
If you want to know how much you have to pay on sales tax or whether your sales tax is correct or not, you can simply find it out through Reverse Tax Calculator. This facility of the reverse calculator comes in-built in any reputed income tax software. This eliminates any chances of human errors that might result out of manual calculations, as you can simply manage tax estimation processes from the software itself. The most important thing to remember for claiming sales and sales tax is to save all your receipts for all the purchases made throughout the year.
- Bulk Contact Verification
Income Tax Software eases the pin verification process by accessing mail ID. It generates a Forward and Alias mail by setting up a single mail ID on the Gen IT page and facilitates bulk contact verification.
- Search ITR Acknowledge Number
Income tax software enables the users to take a look at all the details of the income tax returns. You just have to insert your Acknowledge Number and can utilise this option with ease.
- Depreciation Chart
An ideal income tax software would have the functionality of calculating depreciation value of products. According to the New Appendix I of GST law, the monetary value of all our fixed assets decreases until it reduces to zero. The depreciation rate is measured by how much the asset’s value has been used up. An application for income taxkeeps an account of the depreciation chart according to the Income Tax Act, Import-Export Act, etc.
- IT Portal Linking
As per the rules of the Government of India, the users have to submit the ITR forms annually. Income Tax software facilitates direct linking to the IT e-filing website. It helps tax filers to easily download Income Tax Returns and their receipts in XML and .pdf format.
- Effortless PAN application and correction
PAN is compulsory for all financial transactions. The main objective of PAN is to track and monitor all those transactions that bear a taxable component. With the help of this software, users can manage Form 49A and also the correction form 49A for tax returns. It also facilitates the online submission of those forms.
- Saves all your details
In earlier days, people used to invest their money in banks. But now, People are reinvesting more in the Post Office Savings Schemes like NSC and KVP, to gain more interest rates than banks. An Income Tax application carries forward all your particulars from the previous year to the next year, automatically.
- E-payment of Challans
After installing the software, users can utilise it for e-payment. An income tax platform provides the facility to easily prepare all the challans and e-payment of the same, with verification. The users just have to upload PAN and all other necessary details.
Benefits of Income Tax Software
With the advancement of modern technology, theincome tax software diminishes all your efforts that are related to taxation formalities and filling of the returns. Some of the advantages of income tax software that will ease the tax filing tasks include –
- Accuracy: It is quite natural for people to commit mistakes while doing calculations. The software will assist you with accurate results. You can complete all procedures regarding income tax return filing with the assistance of a genuine income tax application.
- Minimizing of tax deductions: It often becomes quite difficult for tax professionals to remain updated with all the tax laws. Every year some deductions are announced for those who work from home. People can install the latest version of the software, so they can go through all the deductions and hence, can pay less.
- Avoids audits: An income tax software will analyse all your errors before you file your tax returns. So it reduces the chances of getting an audit by the IRS (Internal Revenue Services), thus reducing the chances of getting penalised.
In earlier days, tax filling processes were often a burden to the people. It was more time-consuming, and therefore, hampered work productivity. But now, e-filing with the help of an income tax filing software is much quicker and hassle-free. People can avail of all the benefits by installing an efficient income tax software.