In India, the introduction of digitalisation has transformed administrative operations, particularly taxation and government services. With the rise of e-governance activities, e-filing and e-payment have
emerged as critical components of the digital transformation. E-filing refers to the electronic submission of a variety of documents, allowing for more efficient operations for tax returns and other purposes.
E-payment, on the other hand, allows for the electronic transfer of a number of regulatory-mandated charges and fees, ranging from income tax liabilities to goods and services tax obligations.
Difference Between e-Filing and e-Payment
While both e-filing and e-payment are electronic processes connected to taxes and other government operations, they serve different functions. E-filing is the process of electronically submitting documents or forms, whereas e-payment is the process of making electronic payments.
E-Filing
E-filing, also known as electronic income tax filing, is the online filing of an income tax return (ITR) for a given assessment year. This does not involve any physical exertion. Simply log in to your laptop and file your ITR according to the Income Tax Department’s guidelines.
Benefits of E-Filing
- It has a faster process when you file an ITR.
- Refunds are also processed more quickly than paper-filed returns.
- It is the most convenient method of filing an ITR as it allows you to do so at any time and from anywhere.
- Security: No one can access your personal data accidentally or on purpose.
E-Payment
E-payments are done with debit and credit cards, direct bank deposits, and e-checks; however, other e-payment methods, including e-wallets and bank transfers, are also accepted.
Benefits of e-Payment
- It’s faster and more convenient
- Making digital payments also provides proof of transactions.
- Taxpayers can use this method anytime.
In simple words, e-filing is the process of electronically submitting your Income Tax Return using the e-filing portal, and e-payment is the process of electronically paying taxes.
