e-Filing of Income Tax Returns

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e-Filing of Income Tax Returns

• by
• Dr.H.S.Srinivas Prasad F.I.E.

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DISCLAIMER

• The speaker does not claim that he is an income
  tax practitioner and this talk is purely for
  educational purposes.
• Neither The IE(India) nor the speaker takes any
  responsibility for penalties that may result from
  income tax returns filed by anyone.
• People are advised to study relevant laws or
  consult a tax practitioner in case of doubt.

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Policy on Taxation

• Chanakya's Artha Shastra "collect taxes from
  citizens the way a Bee collects Honey from the
  flowers - quietly without inflicting pain".
  http//www.rediff.com/money/2008/feb/27inter.htm
• Render therefore unto Caesar the things which
  are Caesar's and unto God the things that are
  God's" - Gospel of Mark (1215)
• Payment of Zakat is one of the 5 pillars of Islam
• Thiruvalluvar (Thirukural) Taxes which people
  pay are one of the three sources income of a king

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The Laws

• Ignorance is not bliss know the law
• Income tax Act 1961 as modified by Finance Act
  2012
• Visit http//incometaxindia.gov.in
• Click on Tax laws and Rules gt Income tax Act
  1961

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Click here
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Click here
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Definitions

• "assessment year" means the period of twelve
  months commencing on the 1st day of April every
  year S.2(9)
• Previous Year "previous year" means the
  financial year immediately preceding the
  assessment year S.3
• Income defined in section 2(24) of IT Act.
• PAN permanent account no. (S.139A)

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Computation of total income

• For any Assessment Year the taxable income
  comprises the following types of income
• Salaries
• Income from house property
• Capital gains
• Business or Profession
• Income from other sources

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Excluded income
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Excluded income examples (S.10)

• Agricultural income
• Income of a partner in a partnership firm,
  separately assessed as such
• LTC paid by employer
• any allowances or perquisites paid or allowed as
  such outside India by the Government to a citizen
  of India for rendering service outside India

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Excluded income examples (S.10)

• in the case of a consultant any remuneration or
  fee received by him or it, directly or
  indirectly, out of the funds made available to an
  international organisation ...
• any gratuity received under the Payment of
  Gratuity Act, 1972 (39 of 1972), to the extent
• any payment in commutation of pension

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Who should file an IT return

• S.139 - Filing of IT return is obligatory if
  income, before any deduction under section
  chapter VI exceeds
• For men below 60 years of age Rs.180,000
• For women below 60 years of age Rs.190,000
• Age between 60 and 80 at any time during
  financial year 2011-12 Rs.250,000
• Age above 80 years at any time during financial
  year 2011-12 Rs.500,000

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IT Return forms
Form ITR- 1 2 3 4
Salary Pension X X X X
Other Sources (only Interest Income or Family Pension) X X X X
Income/Loss from Other Sources X X X
Income/Loss from House Property X X X
Capital Gains/Loss on sale of investments/ property X X X
Partner in a Partnership Firm X X
Income from Proprietary Business/Profession X
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DOWNLOAD RETURN FORM
CLICK HERE
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Income tax return

• Part A General
• Part B TI
• Verification
• Schedules
• Salaries
• HP, house property
• OS, other sources, etc.

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Salary

• Sections of IT Act S.15 to 17
• Schedule S of return
• Form 16 issued by employer shows TDS
• House Property
• Sections of IT Act S.22 to 27
• Schedule HP of ITR2

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Business or Profession

• Sections of IT Act S.28 to 44D
• Schedule BP
• Capital Gains
• Short term capital gains
• Long term capital gains
• Sections of IT Act S 45 to 55 A
• Schedule CG

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Other Sources

• Sections of IT Act S.56 to 59
• Schedule OS (includes interest on deposits)
• Aggregation of Income Losses
• Current year losses may be set off or carried
  forward, S.66 to 80
• Schedules BFLA, CYLA, CFL

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Deductions from taxable income

• Chapter VIA, section 80A to 80 VV
• S.80C Insurance, provident fund

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Deductions from IT
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Deductions from IT
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Advance Tax

• As per S. 209 and S.211 b of the IT Act
• 30 by 15th September
• 60 by 15th December
• 100 by 15th March

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Self Assessment Tax

• Section 140A the assessee shall be liable to pay
  such tax together with interest payable under any
  provision of this Act for any delay in furnishing
  the return or any default or delay in payment of
  advance tax, before furnishing the return and the
  return shall be accompanied by proof of payment
  of such tax and interest.

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Interest payable

• For delay in filing IT return 1 per month
  (S.234A)
• Interest for delayed payment of advance tax 1
  per month. (S.234B, 234C)

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Challans for payment of taxes

• ITNS 280 for payment of Income tax and
  Corporation tax
• ITNS 281 for depositing Tax Deducted at Source /
  Tax Collected at Source (TDS/TCS)
• ITNS 282 for payment of Hotel Receipts Tax,
  Estate Duty, Wealth Tax, Gift-tax, Expenditure
  Tax and Other direct taxes.
• ITNS 283 for payment of Banking Cash Transaction
  Tax and Fringe Benefits Tax.

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Tax Deduction at Source (TDS)

• S.192 on salaries by employer form 16
• S.194 on dividends
• S.194a interest other than interest on
  securities
• S.194i rent
• S.194j fees for professional or technical
  services

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I.T. Return Forms
Click here
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Download form/instructions
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Procedure for e-filing

• Open the web site http//incometaxindia.gov.in
• Click login and register as new user
• Download return preparation software based on
  Excel
• Fill the form
• Verify
• Generate XML file
• Upload XML file
• Return receipt received by email duly verified.

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Registration
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Registration - Enter PAN
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Registration - Fill in the form
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Login
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Login Enter PAN and password
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Return preparation software - 1
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Download software for return preparation-2
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Select form and download
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Viewing TDS-form 26 AS

• View Tax Credit Statement (Form 26AS) through
  e-filing web site
• After login go to menu option
• MyAccount-gtView Tax credit statement (Form 26AS)
• The new screen provides facility to enter A.Y.,
  DOB and capcha code to view the statement.

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Viewing TDS-26AS -1
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Viewing TDS-26AS - 2
Click here
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Viewing TDS 26AS - 3
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TDS-form 26AS-4
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e-Filing 2012-13
Click here
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Submission select A.Y.
Click here
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Select form to be uploaded
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Enter XML file to be uploaded Upload
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After return is uploaded

• Acknowledgment will be generated by computer /
  and will arrive by email.
• Please sign and dispatch it within 120 days to
  the Central Processing Centre duly verified by
  post

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Benefits of e-filing

• Downloading form may be done from home
• Filing Excel form is simpler than manual filing
  as computations are done by computer. Accuracy
  is ensured.
• Returns may be submitted 24/7 and queuing in IT
  office will be avoided
• Processing of return can be monitored

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Who may e-file a return

• Compulsory for assessees with more than 10 lakhs
  income per annum
• Optional for others

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Thanks to

• IEI for the opportunity to make this presentation
• Staff of the Mysore Local Centre for their
  assistance in making the presentation
• All of you for your attention
• The End