Now, file income-tax from home

New Delhi: No more standing in queues. You can now file tax returns from the comfort of your homes.

"The I-T department will continue to initiate measures, which are taxpayer friendly. I hope that companies will file their returns and installment of advance tax by October 31, 2006," Finance Minister P Chidambaram said on Friday after launching the e-filing initiative of the Income-Tax department.

Those words might cloud a lot of Diwalis this season, but the Finance Minster is convinced that there is ample time for everyone to put in their tax papers. And with the launch of e-filing, Chidambaram believes that a convenient and effective system has been put in place.

With the opening up of this facility, taxpayers will now be able to file their return through the Internet on the department's website. The revised form of e-filing was put in use on Friday with industry bigwigs TCS and Hero Honda in attendance. The new process promises to be hassle-free with three options of digitised signature login, login without digitised signature and intermediary logins. The bright side, however, is that e-filing process would be jurisdiction free, especially for personal tax returns.

The software for the programme has been prepared by Tata Consultancy Services (TCS). The Central Board of Direct Taxes (CBDT) function in this regard was organised at North Block and on the occasion TCS and Hero Honda filed their returns using the e-filing facility.

The tax returns can be e-filed either using digital signature or without digital signature. If the e-filing is without digital signature, the taxpayers will also have to file a paper return.

"Corporates can file their income tax and Fringe Benefit Tax (FBT) return combined in Form Number 1," A K Sinha, a CBDT spokesman, said. He said for other taxpayers e-filing was optional. They may e-file their return in Form No 2, Form No 2F or Form No 3.

"Those who have filed their income tax returns in any of these forms, or any other form, may e-file their FBT return form in Form No 3B," he said. Sinha said the new initiative would enable the government to interface with the stakeholders more effectively.

(With agency inputs)