Best Free Income Tax Software for IT Returns and TDS Returns

Reading Time: 8 minutesEvery time we approach the end of the financial year, the burden of filing taxes and tax returns looms large. The prospect of mounting paperwork and staying on top of the changing government regulations makes one dread the fiscal year-end.

However, there are several paid and free Income Tax Software available to aid you in the process. E-filing your yearly IT returns and TDS Returns becomes far more comfortable and a lot less time consuming with these software. Besides, they require minimal to zero paperwork and remove much of the stress from the entire process of filing IT and TDS returns.

Here is a comprehensive list of the best free Income Tax Software available in the market today.

13 Top Free Income Tax Software for IT Returns and TDS Returns

1. ClearTax

This free income tax software has it all. ClearTax gives you a hands-on experience of filing your returns electronically. All you need to do is sign in through your existing email account, upload your Form 16, and the software will calculate your taxes. Besides, your returns will be ready for submission to the IT department.

ClearTax also offers assisted services from their in-house experts to those who need a more professional hand in managing their complex returns. Their fees start from Rs. 799, and increase based on the complexity of the return filing process.

Features

• Sales tax management
• Inventory management
• Reporting
• GST calculating and filing
• Data import/export
• E-way bill generation
• Transaction tracking

Pros

• Simple and Easy to use modules
• Fits the needs of Mid-size enterprises
• Helps save a lot of time spent in filing taxes
• Beneficial and highly responsive software
• Very secure and private
• Expert assistance provided anytime

Cons

• No mobile application
• Only supports Android
• Not suitable for startups

2. Saral Tax

Saral Tax is a user-friendly, GST-compatible, and the best free Income Tax software. It is a one-stop solution for all your income tax-related queries.

Chartered Accountants and other tax practitioners find it easy to file their returns through Saral Tax. The software automates most of the tax-related processes and ensures compliance. Saral Tax offers more than 15 products for income tax filing and returns to make taxpayer’s life easy.

Features

• Audit Report e-filing
• Revised schedule VI balance sheet for the company
• Direct data interface from Tally ERP

Pros

• Definitions and Allowances exemption calculations for all the allowances
• NSC interest Calculations
• Business depreciation calculations
• Interest Calculations for Delayed Filing (234A), Advance Tax Payment (234C) and Self-Assessment Tax Payment (234B)

Cons

• Has only on-campus deployment feature and no cloud support
• Support no other payment method other that One-Time

3. EZTax

EZTax is one of the best free income tax software for calculating IT returns. This software is available in 8 countries across the globe.

This ITR preparation software offers GST accounting, income tax e-filing, TDS preparation, among many other such services. It makes tax filing a breeze by auto-reading the uploaded Form 16.

Features

• Tax management
• Tax filing
• Reporting
• Address validation
• Taxability verification

Pros

• A complete free solution
• 30-days free trial offered for the GST Accounting software
• Priced nominally at Rs. 449
• Cloud-based deployment

Cons

• No mobile application for iOS and Mac users

4. Tax Raahi

Tax Raahi is a “one size fits all” tax automation solution. It can resolve all client taxing concerns related to GST, ITR, TDS filing on a single platform.

This best free income tax software solution enjoys a proven record of being one of the fastest income tax systems in the business. It is about 40% faster than other income tax systems. Tax Raahi lets you file GST returns and keep track of them in 15 minutes or less.

Features

• HSN finder
• E-commerce import support
• Multi-GSIN
• Mismatch notification
• Imports previous years’ return

Pros

• User-friendly and intuitive
• Cloud-based deployment
• Import data from Tally or Excel

Cons

5. Winman

Many regard Winman as India’s No. 1 chartered accountancy software suites. It has many flagship products, including audit report software and balance sheet software. This makes it the best free income tax software.

The software can effectively cater to the needs of Chartered Accountants. It is known to have revolutionized income tax preparation, tax filing procedures, and also balance sheet computation.

The best part of Winman is that the CA-ERP software is available at no additional cost. It enables the user to have the best tax filing experience.

Features

• E-returns
• E-services
• Import/Export data
• No data duplication
• Regular software updates

Pros

• User-friendly
• Single-window computation
• Income tax return generation as per the e-filing schema

Cons

• No mobile application support

6. TaxTron

TaxTron is a Canada-based tax preparation and filing software. It has made filing income tax returns in Canada a walk in the park. It is compatible with both Windows and Macintosh operating systems.

This best free income tax software is subjected to a rigorous testing procedure to remain compliant with Canadian revenue guidelines.

Features

• File your tax return with Canada Revenue Agency and Revenue Quebec
• Roll information forward from last year’s tax return if you prepared the previous year’s return using TaxTron

Pros

• Compatible with both Windows and Macintosh
• Available in four different languages – English, French, Hindi, and Punjabi
• User-friendly
• Inexpensive

Cons

• No mobile application
• No Multi-tier software

7. EASYOFFICE

EASYOFFICE is Electrocom’s taxation software which provides comprehensive taxation solutions and includes different modules like

• Income Tax Returns
• e-TDS Software
• Audit Software
• CMA Software
• Return Filing Software

The income tax software can import data from XML, FVU, and Tally.

Features

• TDS Returns
• Service Tax Calculations
• Service Tax e-Return Filing
• Income Tax Processing

Pros

• User-friendly and effective 
• Compatible with government regulations

Cons

Also, Read: How To Use Government’s Income Tax Calculator: Stepwise Guide

8.TurboTax

Michael A. Chipman of Chipsoft developed TurboTax in the mid-1980s. They offer a free tax filing solution to file your federal and state taxes online easily.

The income tax software runs a complete review of your return before giving you a green signal to file. It makes sure that you haven’t missed anything. It imports all the information from W-2 into all the right forms.

Features

• Active and reliable customer support available 24×7
• Enables you to view your credit score as well
• Allows you to do your taxes from anywhere and at any time using any device
• Lets you pick up from where you left the last time as it saves your progress

Pros

• Has APIs to download several W-2s
• Stores your historical information which you can access at any time
• User-friendly interface

Cons

• Not compatible for complex financial situations

9. TaxCloudIndia

TaxCloudIndia is a cloud-based tax solution for various problems a CA might face while filing returns. It automates a variety of tasks to save time and effort. This cloud-based income tax software enables you to work from anywhere and at any time as per your convenience.

To ensure a smooth and seamless filing experience, TaxCloudIndia keeps abreast of the latest tax regulation changes. Thus, it ranks as the best free income tax software.

Furthermore, it supports all types of income heads and ITR forms, such as income from salary, house property, capital gains, etc.

Features

• Facilitates collaboration so that the firm can work with multiple clients at the same time
• Integrates with third-party solutions
• Selects your ITR Form based on the data entered

Pros

• Direct e-filing without XML
• Backs up all your data
• Efficient for importing 26AS
• Calculates your capital gain
• Lack of customer service
• Complex system set-up

Cons

• Lack of customer service
• Complex system set-up

10. TaxAct

TaxAct is an American income tax software, suitable for individual tax registers and professional affiliates. It has both free and paid versions. You can easily file a 1040 form and a state return using the best free income tax software.

It allows you to take the child tax credit, the credit for the elderly or disables, the earned income tax credit, the education credit, and the credit for child and dependent care expenses. More such features are available in the paid version.

TaxAct’s free version works best for people who don’t plan to claim any deductions or credits other than the earned income tax credit, the child tax credit, or the standard deduction.

Features

• Offers free tech support by chat, email, or phone
• Has an easy-to-use and intuitive interface
• The mobile app has a smart camera functionality to let you capture your W-2 data

Pros

• Imports your data from previous returns
• Imports data from your W-2
• Compatible with different devices

Cons

• Customer service is not very active
• Limited features in the free version

11. H&R Block

With its easy-to-use interface, H&R Block is the best free income tax software. It is an ideal solution for filing your returns from your home’s comfort. It even offers help through interview-style questions as a part of its “Guide Me” series.

Moreover, its free version lets you file the new Form 1040 and the new Schedules 1-6. It also allows you to take the child tax credit, the earned income tax credit and the credit for the elderly or disabled just like TurboTax.

Features

• Imports your federal filing information to compute your state taxes
• Lets you take advantage of home mortgage interest
• Tech support available 24×7 via chat

Pros

• Offers professional assistance
• User-friendly interface with easy navigation
• Import the W-2 data with ease

Cons

• Additional fee to get an audit report

12. TaxPoint

TaxPoint is one of the best free income tax software solutions that has been around since 2011. It has a user-friendly interface that appeals to experienced filers and novices alike.

Besides, if you have prepared your taxes with TaxPoint earlier, you can transfer all relevant information from the previous year’s return. It saves you from the trouble of re-entering relevant information to file the current year’s return.

Moreover, if you filed your returns with another online tax prep service during the previous year, TaxPoint allows you to import that return. It auto-populates the relevant information as you file the return.

Features

• Tech support available for free via email, live chat, and phone
• Enables a non-tech savvy person to file their return online easily
• Lets you file the new 1040 form for free

Pros

• Import the W-2 data with ease
• Offers bilingual assistance
• User-friendly interface with easy navigation

Cons

• Payment applicable for filing state returns

13. TaxSlayer

TaxSlayer is also one of the best free income tax software solutions, which offers both free and paid versions. The free version works best for filing the new 1040 form quickly with its intuitive and user-friendly interface. It allows you to file both federal and state returns for free.

TaxSlayer checks your return for errors and missing data before you e-file to ensure that the IRS processes your return without any delay. It allows you to import your previous year’s return information from other tax service solutions to file your return with ease.

Features

• Offers free technical support via email
• Has intuitive navigation, including a sidebar that keeps track of your progress
• Imports information from previous tax returns

Pros

• Clean and intuitive interface
• Plenty of tools
• Guarantees 100% accuracy

Cons

Summing Up

Income tax filing is a tedious and cumbersome process that can have grave consequences if not done correctly. However, income tax software can make the process of filing taxes and returns a not-so-taxing one!

This list of some of the best free income tax software solutions available on the market will help you remain compliant with local tax regulations. If you are using a solution other than those mentioned above, do let us know in the comments section.

Editor’s note: This article was originally published in April 2019 and has been updated for comprehensiveness.