File your ITR yourself or hire a CA? Costs, risks and when professional help pays off
Self-filing on the free portal, filing platforms, tax preparers or a chartered accountant: what drives the cost, who needs help and warning signs.
If your income is salary, interest and simple mutual fund gains, you can usually file yourself on the Income Tax Department's free e-filing portal, which pre-fills most data from your AIS. Paid online filing platforms add guided screens and import tools for a fee. A chartered accountant (CA) or tax practitioner is worth paying for when you have business or professional income, F&O trading, property sales, foreign income or assets, ESOPs, multiple years to correct, or a notice. Fees vary widely by city and complexity, and there is no official fee scale. Whoever files, you remain responsible for the return, so never sign off on claims you cannot prove.
Your options compared
| Option | Typical user | What it does | Cost drivers | Watch out for |
|---|---|---|---|---|
| Self-filing on the e-filing portal | Salaried, pensioners, simple investors | Pre-filled forms, tax computation, e-verification | Free | You must check every pre-filled figure yourself |
| Online filing platforms (authorised e-return intermediaries) | Salaried with capital gains, frequent investors | Guided interview, broker statement imports, assisted plans | Plan tier, capital gains, number of employers, expert review | Upselling; check that the platform is an authorised intermediary |
| Tax return preparer or local tax consultant | People who want someone to file for them | Prepares and files simple to moderate returns | Number of income heads, documents | Quality varies; avoid anyone promising a bigger refund |
| Chartered accountant | Business, professional, complex investment or notice cases | Computation, books, advance tax planning, replies to notices, audit | Complexity, audit requirement, urgency, representation | Agree the scope and fee in writing |
We do not rank providers or quote fees. Ask for a written quote that says what is included: computation, filing, verification help, and whether replies to later intimations are covered.
What decides whether you need a professional
You can probably self-file if:
- your income is salary or pension plus bank interest and dividends;
- you have mutual fund or share gains that appear in a consolidated statement;
- you are choosing between regimes and can use the old vs new regime comparison;
- you have no foreign assets and no business income.
Get help if:
- you have business or professional income, especially if you may need a tax audit;
- you trade in futures and options or do intraday trading, which is business income;
- you sold property, or bought one from an NRI, or are an NRI yourself;
- you hold foreign bank accounts, shares or ESOPs, which need a foreign assets schedule. Failing to report them can lead to penalties under the black money law;
- you have received a notice proposing additions;
- you need to correct several earlier years with updated returns.
Costs of getting it wrong vs the cost of help
A simple worked comparison (illustrative). You sold a flat with a ₹40 lakh gain and planned to reinvest in a new house. A mistake in the exemption calculation or a missed deadline for depositing unused gains could cost several lakh rupees of tax. A professional's fee is small by comparison. For a salaried person with ₹30,000 of interest, the risk is small, and self-filing on the portal is enough.
Warning signs when choosing help
- Promises of a refund before seeing your documents.
- Offers to add rent receipts, donations or medical bills you did not pay.
- Requests for your portal password rather than adding them as an authorised representative or sharing documents.
- No written scope or receipt for fees.
- Reluctance to give you a copy of the computation and filed return.
Fake claims can attract penalties of up to 200% of the tax involved, and the liability is yours. See the common mistakes guide.
Working well with a CA
- Share the AIS, Form 26AS, TDS certificates and capital gains statements early, ideally in May or June.
- Tell them about every bank account, demat account and foreign asset.
- Ask them to show both regime calculations.
- Review the computation before filing. Check total income, regime, deductions and bank account.
- E-verify the return yourself, and keep copies.
The ITR documents checklist lists what to collect. The ITR filing checklist tool tracks the steps.
Verifying a professional
- Chartered accountants are members of the Institute of Chartered Accountants of India (ICAI), which publishes a way to check membership.
- Online filing platforms that file on your behalf should be authorised e-return intermediaries with the department.
- Any professional can be added to your portal account as an authorised representative where the rules allow. This avoids sharing your password.
All official portals are listed in the official sources guide.
Professionals are most useful for updated returns and replies to AIS mismatch communications.
Frequently asked questions
Is the government e-filing portal really free?
Yes. Filing, AIS access, tax payment and e-verification on the portal are free.
Can a CA file for me without my Aadhaar OTP?
They can prepare and submit, but verification needs your OTP, net banking or a digital signature. Do not share OTPs for other purposes.
Is a CA responsible if the return is wrong?
You are responsible to the department. A CA who gives negligent advice may face professional disciplinary action through ICAI.
Sources
- Income Tax e-filing portal: free self-filing, authorised representatives and the list of e-return intermediaries
- Institute of Chartered Accountants of India: member verification and professional standards
- Income Tax Department: taxpayer services
