Income Tax Return Filing Methods in India: A Comprehensive Review and E-Filing Trends Analysis

Income Tax Return Filing Methods in India: A Comprehensive Review and E-Filing Trends Analysis

Ms. Arti Kumari, Dr. L.S Yadav

Singhania University, Pacheri Beri, Rajasthan

Abstract

Introduction: According to Indian Income Tax law, there are two parts of tax obligation: paying the income tax on the total income and then declaring the particulars of all sources of income, including taxable and non-taxable income, and providing information on the overall tax. The term "return of income" refers to the second liability.

Purpose: The paper comprises an overview on E-filing of income tax returns in India and attempts to know the modes and process of filing of Income Tax Return in India and to study the trends of E Filing from 2010-11 to 2021-22.

Design/ Methodology/ Approach: This study utilized a secondary data analysis (SDA) approach to achieve its research objectives. The investigation focused on using secondary time-series data collected from various published sources such as the Economic Survey, Compiled Reports of Comptroller and Auditor General of India of Relevant financial years, income tax official website, research papers, and other relevant sources for the years 2010-11 to 2021-22. Quantitative data analysis was used to describe and investigate the outcome of the study. In particular, correlation analysis was performed on the data using SPSS software to analyze the trends of E-filing of income tax returns during the research period.

Findings: After reviewing about 20 research papers, the researchers arrived at a conclusion that the online forms of the department are designed in such a way that taxpayers are not required to submit any additional paperwork with them. This has significantly simplified the income tax return filing process and made it more convenient for taxpayers. Researchers found that there is a strong correlation between the total number of registered users and the total number of return filers. They also found that the apparent decline in the number of income tax returns (ITRs) filed during the fiscal year 2018-19, as compared to prior years, was attributed to the introduction of a modification clause in the law, which came into effect on April 1, 2018.

Originality/ Values: The literature on E-filing trends and processes is extensive, however, there are only a few research papers that focus on recent E-filing trends and the correlation between registered users and actual E-filers. In this study, the researchers aim to understand the recent trends of E-filing of income tax returns in India for the period 2010-11 to 2021-22. The study seeks to fill the gap in the literature by examining the recent E-filing trends and the factors that influence the number of registered users who eventually become actual E-filers. By doing so, the study provides valuable insights into the current state of E-filing in India and can help to inform policy decisions and improve the efficiency of the income tax return filing process.

Key words: Return of Income, Modes of filing of return, E-filing, Trends in E-filing of Income Tax Returns.