Income tax software is an application that assists at stages like income tax computation, ITR preparation, TDS, and income tax e-filing. The process of using income tax software is very simple and user-friendly due to minimum key operations and single window computations. It also helps with data entry and income tax calculation of taxes. Tax software facilitates easy preparation and generation of ITR forms in paper returns and e-returns by automatically filling the values from your sheets into ITR forms. The income tax software further provides various online tools and features.

Income Tax Software is a comprehensive solution for Indian tax compliance which automates the process of ITR preparation, TDS returns, and online filing in bulk.

ITR Preparation Software (Filling Software) for AY 2020-21

Here comes March, and ITR preparation software is going to be the best companion of start-ups, SMBs, and big enterprises alike. But do you know the basic steps to file ITR? Let us help you with ITR preparation with these simple steps:

• Calculate your taxable income
• Collect TDS certificates for all four quarters and calculate your TDS amount
• Choose your ITR form to file ITR online or offline
• Go to the income tax portal and download the ITR utility form
• Fill in the details in the form and validate your details 
• After converting the file to XML format, submit it on the IT portal

How Income Tax Software Help Your TDS and ITR Filling

Most Common Features Of Income Tax Software

Online Income Tax: This is also acknowledged cloud-based income tax software and it will help to access a dashboard to track financial details anywhere and anytime.

Complete ITR Preparation Software: This is designed for automating the processes related to the online filing of income tax returns and preparation.

Bulk ITR Filing: With corporate income tax filling software, you can do Easy filing of income tax returns in bulk with support from E-Return Intermediary services.

Tax Meter: A professional income tax software has the feature of tax meter which gives a quick glance of numbers under different income categories. You can also check the interest payable with the help of income tax calculation software.

Auto-Calculations of Taxes: Computation of income and exceptions for all categories can be calculated automatically with tax software.

Auto-Estimation: Estimation of late payments, payment interests, late filing interest, and the fee for delayed filing can be done automatically with the help of tax software.

Audit Report: A federal income tax return filing software has a built-in module for creating audit reports using a facility for easy importing. You can also auto-transfer data from computation and ITR, and carry forward the relevant data for future use.

Reporting Option: With income tax software, you can generate various reports like Audit, challan, MIS, and computation reports duly signed by the auditor. etc.

Data Import: You can bulk data import from multiple sources such as XML, Excel, and other sources for filing income tax returns with the help of income tax return filing software.

Tax Details Import: Tax details paid in previous financial years can be extracted with the income tax software. You can get details like TDS, 26QB, 26QC from form 26AS.

e-Filing Tools: You will get an e-return to submit a tool and an e-return error locator utility. With income tax return filing software, you will also get to update your e-filing profile.

Online Adhaar-PAN Linking Tools: Tools and utilities like e-challan, mass e-return processing status, and adhaar-PAN linking can also be done with the help of itr filing software. You can also download and import XML as well as other file formats from the IT website.

E-Services: An income tax filing software can guide you with e-payment, submission of payment details, message services, digitally signed e-invoice, and auto-registration on formatting and surrendering license.

Miscellaneous Features: Income tax software includes features like billing, IT checker, and tax planner. An income tax return software can provide a comparison of the current year’s figures to any of the years in the past. You can also view the bank details like IFSC and BSR code.

Add Digital Signature: You can upload your digital signature by using the digital signature utility feature for form 16 and form 16A.

Integration with TRACES: ITR filing software provides the online services utility feature which is fully integrated with TRACES (TDS Reconciliation, Analysis and Correction Enabling System).

Top 10 Income Tax Software For ITR Calculation, TDS and Return Filling

• Chartered TaxPro TDS Professional – Best income tax return filing software in India
• Cleartax income tax software at a low price 
• Monarch M-TDS (TDS Management)
• I-TAX Income Tax Software 
• LegalRaasta - ITR Software
• GEN Genius Income Tax Software
• Gen XBRL
• Monarch eAuditor+
• Spectrum income tax software: This provider offers a free download trial version for a limited period.

Follow Steps Before Buying Income Tax Software online

Finding the TDS software should be based on what your organization needs. Depending upon the type of features that you need, your choice of income tax software will change.

Know What You need

When choosing an income tax calculation software in India, you should know what kind of software do you want. If you are looking for an income tax return preparation software that has automated e-filling and a TDS module as well, you should look for specific options. If you want income tax software with just the basic features, you can opt for the basic versions available.

Ease of Use

Most income tax return software is easy to use, but make sure that you are able to understand and operate the software easily once it’s implemented within your system. Any software functionality that you cannot use conveniently will result in the wastage of both time and effort.

Vendor Support System

Reliable vendor support is a must for you, just in case things go wrong. If you face any issue with the income tax software for tax preparers, you would need a vendor support executive to fix it. You should make sure that your vendor has a reliable after-sales service because delays in fixing the issue can take a major toll on your company.

Free Income Tax Software Demo

Before buying income tax software for pc, you should ask for a TDS return filing software demo trial. Also, make sure that you inquire the vendor about each and every feature. ITR software demos are quite helpful, as you will be able to understand the software better and make a sound judgment before buying the software.

Making the Investment

Make an investment only when you are very sure that you want to opt for online income tax software. Income tax computation software price varies according to its features. If you are a beginner, you can always try your hands on the free income tax software available online. When you are sure that you want to go a step higher, only then make an investment in buying an advanced online income tax software. Before buying, always check the minimum system requirement. Also, make sure that the software you are choosing is compatible with other plug-ins you might want to use.