E-filing is the process of electronically filing a tax return, and e-payment is the process of electronically paying taxes. Using the e-payment and e-filing tool, the taxpayer can complete his tax payment and return filing obligations in a simple and timely manner. This article mainly focuses on the difference between E-Filing and E-payment. But before understanding the difference between these two terms, Let’s understand “What is E-filing?” And “What is E-Payment?”
Electronic income tax filing is referred to as e-filing. The procedure of electronically filing your ITR for a given year is known as e-filing. This implies you will not have to go to the nearest ITR office to file your returns any more. Rather, you use the internet for filing your Income Tax Return (ITR).
Easy Access to Documents
E-filing of returns prompts the user to upload the required papers, resulting in the creation of a database that can be viewed at anytime. There was no such provision in the manual filing of returns.
Provide Convenience to the Taxpayer
All, or at least the majority, modern-day systems, including income-tax, provide convenience to their users. Manual filing necessitates a trip to a crowded tax office, making the procedure tedious and time-consuming for the taxpayer. E-filing of returns, on the other hand, relieves stress by allowing taxpayers to file returns from the comfort of their own homes.
Speedy Verification Process
Previously, income-tax returns were sent to CPC Bengaluru, which was in charge of the verification process. The e-verification tool can now be used to verify income tax returns online. The assessee must, however, have an Aadhaar card in order to use the e-filing option.
Benefit at the time of Loan Adjustment
Individuals can carry forward losses to offset future taxable income under existing income tax laws. This can be repeated for up to eight years in a row. You can use your income tax returns to create a case and carry forward/adjust your losses against future taxable income if you have them.
Online payment systems are what they are called. Debit and credit cards, direct bank deposits, and e-checks are the most common e-payment methods; however, additional e-payment methods such as e-wallets, cryptocurrency, and bank transfers are gaining popularity.
Simpler and Speedier
Electronic Payments are less expensive, easier, faster. E-payments have shown to be particularly beneficial for international transactions. People are virtually at peace with electronic payments and online buying. In this day and age, accepting online payments is a must for any business.
Effective tool for cost saving
You must first partner with a card processor if you wish to offer payment services to your clients. In exchange for providing you with a payment gateway for processing, the processor will charge you a set fee. This is a hefty price tag. If you use an electronic payment system in your firm, on the other hand, you will not have to pay such excessive fees. All you have to do is pay your service provider a certain monthly fee.
Payment can be made at consumer Convenience
E-payments allow users to pay online at anytime and from any location, making them conveniently accessible and convenient. It is straightforward to connect online payment solutions with businesses because numerous payment processing solution providers offer various sorts of solutions.
Payment Security
Customers and merchants may rely on online payment solutions because they contain security, risk management, and anti-fraud tools.
E-filing refers to the process of submitting income tax returns electronically, on the other hand, E-payment refers to the process of paying taxes electronically (through net banking or any other mode). Using the e-payment and e-filing tool, the taxpayer can conveniently and swiftly fulfil his tax payment and return filing duties.
It is simple for a taxpayer to file returns at their convenience time using E-filing and E-payment. When a payment or filing is made via an electronic manner, it is referred to as e-filing and e-payment. It is not only beneficial to the taxpayer, but it is also beneficial to the IT Department because it relieves the Income Tax Assessing Officer of the load of paper filing.
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