Income Tax Return: How Much Do Chartered Accountants And Online Platforms Charge For Filing ITR?

The deadline for filing Income Tax Return ( ITR ) for the financial year 2023-24 is approaching. Taxpayers should start the process as soon as possible to ensure timely submission. This deadline primarily applies to those whose accounts do not require auditing. Here’s a breakdown of the platforms and costs associated with filing ITR:

Filing Directly Through the Income Tax Department Portal

The most cost-effective option is to file your returns directly on the Income Tax Department's website. Taxpayers can log in using their PAN number and follow a template-driven, menu-based process. Once the return is filled, it can be submitted via an XML file. Returns can be verified through physical signature, Aadhaar authentication, digital signature, or online banking verification.

Filing Through Chartered Accountants (CAs)

Many taxpayers opt to hire chartered accountants for filing their ITR. CAs typically handle the entire process, preparing the return based on documents like Form 16 and Form 26AS. According to Motilal Oswal, the cost of these services usually ranges from ₹1,500 to ₹2,000.

Using Third-Party Websites

Taxpayers can also use online platforms like ClearTax, Tax2Win, TaxBuddy, Quicko, and others to file their returns. These websites offer a user-friendly interface and guide users through the filing process. The cost for using these services is generally between ₹500 and ₹1,000. Additional fees may apply for special services.

Importance of Filing Returns on Time

Filing your returns on time ensures compliance with tax laws and helps you avoid penalties. Late filing may result in penalties under Section 234F of the Income Tax Act.

By understanding the different options and costs for filing ITR, taxpayers can choose the best method to meet the upcoming deadline efficiently and cost-effectively.