The word ‘EFIN’ is a very complex term for many taxpayers who are willing to pay their taxes online. The weary of owning a unique EFIN code restricts them. Directorate General of Taxes has given the concept of Electronic Filing Information Number or EFIN to pay online taxes. This is a unique identification number for every taxpayer use to make electronic transactions.
For taxpayers who are intending to pay taxes online must first get to register for EFIN. It helps in making annual transactions. This idea is designed specifically to keep each transaction safe with encrypted data. This fact makes sure the data is kept confidential and no chance of breaching is possible.
Two Kinds of EFIN
There exist two separate categories of EFIN depending on its usability. One for individual taxpayers and the other for corporate businesses. An individual who owns a business must have two unique EFIN. One on a personal name and the other on the business name.
One of the most advantageous reasons for this is the ease of paying taxes. One needs not to queue at the tax office to pay the taxes. The comfort of paying taxes online is undeniable. Perhaps, EFIN allows easy payment from anywhere and anytime.
Additionally, the WP database is well maintained and every year taxpayer is not required to fill the entire form. EFIN system is absolutely confidential as it works on the principle of the authentication of the taxpayer.
To summarize, a few of the most prominent advantages of EFIN are:
- Taxpayers can pay taxes online anytime and anywhere through EFIN. They are just required once to visit the tax office to register for EFIN. Furthermore, they are subject to benefit from a lifelong online tax payment system.
- The confidentiality of the data is well maintained. The online tax system ensures no data can be leaked anyhow.
- The entire process saves time and also, does not require the taxpayer to fill the entire form every year.
Importance of Maintaining EFIN
An EFIN is one of the best trending methods for taxpayers for easy tax payment method. Maintaining it is equally important for the best results. Here’s presenting a few suggestions on handling EFIN:
- A periodic review of the e-file application is necessary to prevent the account from getting into inactivation mode. Make sure to make changes every 30 days such as people involved or change of numbers.
- Update your account whenever necessary with respect to information about linked individuals. These are the people who can carry out important decisions and tax payments on behalf of you.
- Updating new business locations or any change in location is necessary to mention.
- Always remember, EFIN is non-transferrable. So if you sell your business or some other individual or company obtain it, it should access for new EFIN.
- For multiple office locations, there must be separate EFIN applications. If you are expanding your business, an application with respect to each location is important for transactions.
With the introduction of EFIN, the tax department is enjoying great relief. Now there is no use in collecting manual taxes. Now taxpayers can very comfortably pay their taxes under a highly secure environment. Only one rule all has to follow is to pay taxes within the deadline time. Although many taxpayers refrain from the use of EFIN there is a necessity to understand its usability.