Test: E-filing of Income-tax Returns - UGC NET MCQ

Statement 1 is correct. Taxpayers are required to e-verify their tax returns through methods like Aadhaar OTP, net banking, or EVC to ensure the authenticity of the submitted returns. This verification is a mandatory step in the e-filing process.

Statement 2 is incorrect. While having records easily accessible is advisable for any taxpayer, e-filing of Income Tax Returns is a necessary process that must be completed accurately, regardless of record accessibility. Therefore, the correct answer is Option A: 1 Only.

One of the primary advantages of electronic filing of Income Tax Returns is that it significantly minimizes errors and enhances transparency. Unlike paper submissions, which can lead to misinterpretation or loss of documents, e-filing utilizes user-friendly interfaces and secure platforms that streamline the process. This technology reduces the chances of mistakes and ensures that taxpayers can easily verify their submissions. Interestingly, the increased transparency in e-filing can also lead to a higher level of trust in the tax system, as both taxpayers and authorities can track the progress and status of returns more efficiently.

Individuals can file their income tax returns electronically by using their Aadhar number or bank for verification, which serves as an alternative to a Digital Signature Certificate. This method simplifies the process for taxpayers who do not possess a DSC, allowing them to complete their filings efficiently. An interesting fact about e-filing is that it promotes faster processing of returns and quicker refunds, making it a more efficient option for taxpayers.

• The Assertion (A) is correct; e-filing indeed accelerates the processing of tax returns compared to traditional methods, as electronic submissions can be handled more quickly by tax authorities.
• The Reason (R) is also correct; e-filing eliminates physical paperwork, which minimizes human errors that can occur during manual data entry.
• Therefore, the Reason indeed serves as the correct explanation for the Assertion, as the efficiency gained from e-filing is largely due to the reduction of physical documentation and manual processes.

• The Assertion is correct because technical glitches such as website crashes and slow response times can indeed disrupt the e-filing process and lead to frustration among users.
• The Reason is also correct, as these technical issues are often exacerbated by increased traffic on e-filing platforms, particularly during peak tax filing periods.
• Furthermore, the Reason provides a valid explanation for the Assertion, as it clarifies why technical glitches are particularly problematic during busy times.

• The Assertion is correct because e-filing indeed streamlines the process, allowing for faster submissions.
• The Reason is also correct as electronic filing does provide immediate confirmation, which supports the efficiency claim.
• Furthermore, the Reason directly explains the Assertion, as the ability to confirm receipt immediately contributes to the overall efficiency of the e-filing process.

- The Assertion (A) is true because e-filing provides a systematic way for taxpayers to maintain their records efficiently, which aids in better financial planning.

- The Reason (R) is also true as the online portal does indeed offer flexibility in filing returns.

- The Reason is the correct explanation of the Assertion because the convenience of online filing directly contributes to improved record-keeping and financial planning. Hence, both the Assertion and Reason are true, and the Reason correctly explains the Assertion.

The primary benefit of e-filing income tax returns is that it allows taxpayers to avoid visiting the income tax office, making the process more convenient. E-filing enables individuals to submit their tax returns online, eliminating the need for physical documents and the hassle of in-person visits. This streamlined approach not only saves time but also enhances accuracy and efficiency in meeting tax obligations. An interesting fact is that e-filing is often associated with faster processing times for refunds compared to traditional paper filing.

Statement 1 is correct because accessing the Income Tax Department’s e-filing portal is the initial step in the e-filing process.

Statement 2 is also correct, as new users must register on the portal to file their income tax returns. Therefore, both statements are accurate, making Option C the correct answer.

A Digital Signature Certificate (DSC) serves to authenticate documents by providing an individual's electronic signature, which is essential for the e-filing process. This ensures the integrity and authenticity of the submitted documents, making it a critical component in the digital submission of tax returns. An interesting fact about digital signatures is that they are based on public key cryptography, which adds a layer of security to online transactions by ensuring that the signer cannot deny having signed the document.