Manual Filing vs JSON Utility: Which ITR Filing Method is Better in 2025?

The process of filing Income Tax Returns (ITR) has become more streamlined with the introduction of online filing tools, especially utilities like the ITR JSON utility. These digital methods are designed to simplify tax compliance by ensuring a smooth, efficient filing process. Taxpayers now have the option to file manually or use utilities provided by the Central Board of Direct Taxes (CBDT), with the latter being the preferred choice for many due to its ease of use and automation.

For the Financial Year (FY) 2024-25, the CBDT has introduced several updates to the ITR utilities, making the filing process even more user-friendly. This includes changes to the forms, new features, and updates to system functionalities aimed at increasing transparency and reducing errors.

Let us explore a step-by-step guide on how to file your ITR using the utility and JSON files, explain why JSON files are crucial for tax filings, and highlight the latest changes for FY 2024-25. These tools help ensure a faster, error-free tax return submission.

---

Table of Contents

• Manual Filing vs JSON Utility: A Quick Overview

• Eligibility and Applicability: Who Can Use Which Method?

• User Experience and Error Detection: How Each Method Stands

• Convenience and Speed: Which Method Saves You Time?

• Security and Record Keeping: Which Method Is More Secure?

• Support and Amendments: How Easy Is It to Make Corrections?

• Environmental Impact: Is One Method More Eco-Friendly?

• TaxBuddy and the Future of ITR Filing

• Conclusion

• FAQs

---

Manual Filing vs JSON Utility: A Quick Overview

The manual filing method involves filling out your tax return directly on the Income Tax Department’s e-filing portal. This method is suitable for taxpayers with straightforward income and deductions who do not require advanced calculations or documents.

In contrast, the JSON (JavaScript Object Notation) utility method is more advanced and allows for greater accuracy and flexibility. The JSON utility is used for filing returns offline. It involves downloading the ITR utility software from the Income Tax Department website, filling in the required details, and saving the data as a JSON file. This file is then uploaded to the e-filing portal.

While both methods are valid, the JSON utility is ideal for those with complex tax situations or businesses requiring detailed reporting. The manual filing method is often more suitable for simple tax filings.

Eligibility and Applicability: Who Can Use Which Method?

The eligibility for using either the manual filing method or the JSON utility method largely depends on the complexity of your tax return and the type of taxpayer you are.

• Manual Filing:

  This method is most suited for individuals with simple income, such as salaried employees or pensioners. If your tax situation involves straightforward income fromsalary, interest, or other common sources, and you don’t need to submit complex documents, the manual filing option will likely be the best choice.
  

• JSON Utility:

  The JSON utility is recommended for taxpayers with more complicated tax situations. This includes individuals with multiple sources of income, those claiming various deductions and exemptions, or businesses that require detailed financial reporting, such as companies, partnership firms, or professionals with complex income structures. It is also ideal for individuals filing returns under tax regimes with specific exemptions or credits that require more detailed information.

For taxpayers in categories like businesses, those with foreign income, or those claiming numerous deductions, the JSON utility is the preferred method.

User Experience and Error Detection: How Each Method Stands

• Manual Filing:

  Manual filing is relatively straightforward and is integrated directly into the e-filing portal, making it easy for taxpayers to fill in their details and submit them instantly. The user interface is designed to be intuitive, but it does have its limitations, especially when it comes to handling complex data or correcting mistakes. While the portal does flag errors as you go along, more detailed calculations, such as those required for TDS reconciliation or intricate tax deductions, can be difficult to perform accurately.
  

• JSON Utility: The JSON utility offers a more detailed and structured approach to tax filing. This method allows for more precise data entry, making it easier to handle complicated financial details. Error detection is more robust, as the utility performs detailed checks before the JSON file is submitted, reducing the chances of submitting erroneous information. The ITR utility also validates the data fields based on the form structure, ensuring that data is entered in the correct format. This feature significantly reduces errors that might go unnoticed when using manual filing.

Convenience and Speed: Which Method Saves You Time?

• Manual Filing:

  For those filing simple returns, manual filing is the quickest method. The interface is designed to be user-friendly, guiding you step-by-step through the filing process. For basic returns, such as salary income with standard deductions, this method can be completed in a matter of minutes.

• JSON Utility:

  The JSON method, while more comprehensive, may require more time upfront, especially for those unfamiliar with the software. However, the extra time spent on preparing the return using the JSON utility can pay off in the long term, as it allows for more detailed, accurate returns and prevents delays due to errors. For businesses and individuals with complex filings, this method is the most efficient, as it facilitates better record keeping and smoother processing.

Security and Record Keeping: Which Method Is More Secure?

• Manual Filing:

  Manual filing is secure as long as the taxpayer uses the official Income Tax Department’s portal and follows recommended security practices. Since the filing happens in real-time on the portal, there is minimal risk of data being lost. However, this method does not provide the same level of control over record keeping and can make it harder to track or store data for future reference.

  
  

• JSON Utility: The JSON utility offers a higher level of control and security. Since taxpayers fill out the details offline, they can save the JSON file on their computer or other storage devices. This provides a more reliable backup of the information, which can be helpful for future reference or in case of any discrepancies. Furthermore, once the data is uploaded to the e-filing portal, the security measures of the Income Tax Department ensure that it remains encrypted and protected.

Support and Amendments: How Easy Is It to Make Corrections?

• Manual Filing:

  If you realize an error in your manual filing, you can easily file a revised return through the e-filing portal. However, this process can be cumbersome if the mistake involves multiple sections or calculations. Amendments are typically processed within the portal, but more complex revisions may require additional scrutiny from the tax authorities.

  
  

• JSON Utility:

  Filing a revised return using the JSON utility is straightforward. Since the data is available offline in a structured format, it is easier to make amendments and generate a new JSON file. This process ensures that the amendments are accurate and aligned with the original filing, making it less likely that revisions will lead to errors.

Environmental Impact: Is One Method More Eco-Friendly?

As the world becomes more conscious of environmental sustainability, even tax filing methods are being evaluated for their eco-friendliness. Filing your Income Tax Return (ITR) has shifted from being a largely paper-based process to a more digital one, with several electronic filing methods now available. Among these, manual filing on the e-filing portal and the JSON utility method stand out. While both methods reduce the need for physical documents, each comes with its own environmental impact.

Manual Filing: A Greener Approach?

Manual filing on the Income Tax e-filing portal is a completely electronic process, which eliminates the need for physical paperwork. This shift from paper-based to digital filing has a considerable environmental benefit. In traditional filing systems, individuals would need to print their returns, gather supporting documents, and mail them to the respective tax authorities. This process led to significant paper waste, not to mention the fuel and resources used for physical mailing.

With manual filing on the e-filing portal, there is no need to print or mail any documents. Taxpayers can directly submit their forms, pay taxes, and receive acknowledgment electronically. This reduces the carbon footprint associated with the production and transportation of paper documents. Moreover, the elimination of paper waste contributes to saving trees and reducing the overall impact of deforestation.

While manual filing is certainly more eco-friendly than traditional methods, it is still reliant on the internet and server infrastructure, which does consume electricity. However, the environmental impact of these digital processes is significantly less than that of printing, mailing, and storing physical paperwork.

JSON Utility: A Digital but Resource-Intensive Method

The JSON utility method for filing ITR is another environmentally friendly way to submit your tax returns, primarily because it eliminates the use of paper documents. However, unlike manual filing on the portal, the JSON method involves downloading the ITR utilities to your device, filling them offline, and then uploading the completed files back to the portal.

The key environmental benefit here is the reduction in paper usage. The entire process is electronic, meaning no physical paper documents need to be printed or mailed. This method offers a significant reduction in paper waste, similar to manual filing on the e-filing portal.

However, one aspect to consider is the additional digital storage required. The JSON method involves saving offline files on your device or an external drive before uploading them. While digital storage doesn’t directly contribute to paper waste, it does consume electricity and resources for maintaining the digital infrastructure—such as servers, hard drives, and cloud storage. The environmental impact of these digital storage solutions can be considered minimal compared to the use of paper, but it still contributes to energy consumption and resource use.

The JSON filing method, therefore, is highly eco-friendly in reducing paper waste but does require some additional resources for data storage. These digital resources are becoming more efficient over time as technology advances, but it’s still important to be aware of the overall environmental impact of maintaining vast amounts of digital data.

TaxBuddy and the Future of ITR Filing

TaxBuddy’s platform integrates the advantages of both manual filing and the JSON utility method. With its user-friendly interface and AI-driven tax filing solutions, TaxBuddy ensures that taxpayers, whether filing simple returns or dealing with complex financial data, can navigate the filing process smoothly. By simplifying error detection, automating complex calculations, and offering expert assistance, TaxBuddy is poised to revolutionize the way individuals and businesses approach their tax filings. The platform continuously adapts to changes in tax regulations, ensuring that taxpayers are always compliant with the latest laws.

Conclusion

The choice between manual filing and using JSON utilities for ITR filing depends largely on the complexity of your tax return. Manual filing is suitable for simple returns and offers a quick and easy process, while the JSON utility is ideal for taxpayers with more intricate tax situations. The extension of the ITR filing deadline for FY 2024-25 provides ample time to file using either method, ensuring that taxpayers have sufficient time to review, amend, and submit their returns. Whether you choose the manual filing method or the JSON utility, using a reliable platform like TaxBuddy ensures a seamless, error-free filing experience, making the entire process hassle-free.

FAQs

Q1: What is the main difference between manual filing and JSON utility?

Manual filing requires taxpayers to fill out forms directly on the e-filing portal of the Income Tax Department. It is a more basic process where each section is filled out step by step. On the other hand, the JSON utility allows for offline preparation and enables users to submit the data as a structured JSON file. The JSON method is often preferred for complex returns, as it allows for bulk data entry and reduces the chance of errors.

Q2: Is the JSON utility suitable for complex tax returns?

Yes, the JSON utility is particularly useful for complex tax returns. It offers more flexibility in handling large volumes of data, such as multiple sources of income, deductions, or advanced tax calculations. The utility provides error detection, which helps prevent common mistakes, making it ideal for businesses, professionals, and taxpayers with intricate financial situations.

Q3: Can I file a revised return using the JSON utility?

Yes, you can file a revised return using the JSON utility. If you notice an error or omission in your initial return, you can correct the data offline, generate a new JSON file, and submit it through the e-filing portal. This feature is highly beneficial as it allows taxpayers to quickly amend their returns without going through the entire manual filing process again.

Q4: How can I ensure my data is secure while using the JSON utility?

When you use the JSON utility, the data is securely encrypted during transmission to the Income Tax Department’s portal. You can also store the JSON file offline in a secure location on your device for future reference. This ensures your tax data remains confidential and protected from unauthorized access.

Q5: Is there a limit to the number of returns I can file using the JSON utility?

No, there is no limit to the number of returns that can be filed using the JSON utility. It is designed to efficiently handle multiple returns, whether for individuals or businesses. This is particularly useful for tax professionals or companies that handle multiple clients or require frequent updates to their filings.

Q6: Can TaxBuddy help with both manual filing and JSON utility?

Yes, TaxBuddy supports both manual filing and JSON utility for tax return submission. This flexibility ensures that whether you prefer the simplicity of manual filing or the precision and speed of the JSON utility, TaxBuddy offers the necessary tools and expert support to facilitate accurate and timely tax filings.

Q7: Do I need technical knowledge to use the JSON utility?

While the JSON utility can be more technically demanding than manual filing, platforms like TaxBuddy make the process easier by offering user-friendly interfaces and detailed guidance. TaxBuddy’s step-by-step support simplifies the usage of the JSON utility, allowing even those with limited technical knowledge to file their returns effectively.

Q8: How can I download the JSON utility?

The JSON utility can be downloaded from the official Income Tax Department website. If you're using TaxBuddy, the platform also provides an easy-to-use interface for generating, uploading, and managing your JSON file, removing the complexity of dealing with the utility directly.

Q9: How long does it take to process a return filed via JSON utility?

Returns filed using the JSON utility are typically processed faster than manual filings. This is because the JSON format reduces data entry errors and streamlines the verification process. The tax department can process complex returns more quickly, especially if the utility has already identified and flagged errors during the initial upload.

Q10: Can I use the JSON utility for corporate or business returns?

Yes, the JSON utility is ideal for corporate or business returns. It supports the complex financial data typically involved in these filings, such as detailed profit and loss statements, TDS credits, and multiple deductions. Businesses can manage these factors more efficiently using the JSON utility, ensuring accurate and timely filings.

Q11: What happens if I submit an incorrect JSON file?

If you submit an incorrect JSON file, the Income Tax Department may flag your return for errors, and the return will not be processed until the issues are resolved. The department typically provides error messages detailing the specific discrepancies. If needed, you can file a revised return with the corrected JSON file to rectify the errors.

Q12: Will using the JSON utility save me time compared to manual filing?

Yes, using the JSON utility saves time, especially for complex returns. It offers error checks, more structured data entry, and an efficient way to handle bulk or complicated financial information. This is a time-saving feature, especially for businesses or professionals who need to process multiple returns or manage large datasets.