TaxTMI 
TaxTMI 
TaxTMI 
READYING FOR FILING INCOME TAX RETURNS
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....EADYING FOR FILING INCOME TAX RETURNS<br>By: - Dr. Sanjiv Agarwal <br>Income Tax<br>Dated:- 17-7-2010<br><br>It is July month of the year now and hence get ready to file your income tax returns as the deadline for filing your tax returns for the Financial Year 2009-10 is 31st July, 2010. Leon Panetta said that "If we don't do something to simplify the tax system, we're going to end up with a national police force of internal revenue agents". Lest this may not happen the Central Board of Direct Taxes (CBDT) has come out with a new income tax Form - Saral-II. As the name 'Saral' suggests, the new form aims at making the process of filing income tax returns easier for individual taxpayers. The form is to be used to file the income tax returns for the financial year 2009-10 (assessment year 2010-11). The Saral-II is a two-page form. It was mentioned by the Finance Minister in his Budget speech for 2010-11 that "this form will enable individuals to enter relevant details in a simple format in only two pages". Thus Saral II has really made the life of salaried tax payer saral. Distinct features of Saral-II Saral-II is to be used by individual taxpayers having salary or pension ....
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....income, income from one house property (excluding brought forward loss from previous years) as well as income from other sources (excluding winnings from lottery). Thus, in the earlier Form, if an individual had income under the head 'House Property', then he was required to fill in a different form, which was more complex in nature and required far more information/details to be filled in. Now, however, all incomes under the head 'Income from Other Sources', except for a few, can be filled in the new Saral Form. Therefore, the new Saral Form is particularly beneficial for individuals having salary income, income from one house property, and income from other sources. The introduction of the Form Saral-II aims at making filing of income tax returns easier for individual taxpayers, primarily having salary income and one house property. Return Forms Central Board of Direct Taxes (CBDT) has issued a set of new income tax return forms for the assessment year 2010-11 to enable the tax payers to file their returns. There are eight forms in all, each applicable to a particular category of the taxpayer and are classified as SARAL II, ITR series 2 to7 and ITR-V. Simultaneously, e-filing ....
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....of tax returns is now available for all categories of taxpayer, although it is mandatory only in the case of corporate taxpayers and firms which are liable to tax audit under Section 44 AB of the Income Tax Act (ITA). How to file tax returns Return forms can be submitted to the Income Tax Department in any of the following manner- * By furnishing the return in a paper form; * By furnishing the return electronically under digital signature; * By transmitting the data in the return electronically and thereafter submitting the verification of the return in Form ITR-V (Provisional acknowledgement receipt) * By furnishing a bar-coded paper return. Where the form is furnished electronically followed by physical submission, the assessee should print out two copies of Form ITR-V. Both copies should be verified by the assessee and submitted to the Income-tax Department. The receiving official shall return one copy after affixing the stamp and seal. Filing Saral II - Get acquainted There are four worksheets named Home, Income Details, TDS Taxes Paid and Verifications. In "home' worksheet, instructions has given to fill the forms. You have to follow all the instructions carefully....
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..... * Validate the data entry done on each of the sheets by clicking on 'Validate' button. * Click on 'Calculate Tax' button on the 'Income Details' sheet. This will calculate Tax and Interest as per the data entered in the Excel Utility. (Note: Date of filing is taken as higher of system date and date entered in Verification.) * Verify the calculated Tax and Interest figures in point nos 8 to 15. * Check point no 16 of SARAL - II (Tax payable) in Sheet 'Taxes paid and Verification'. * If the value is not zero, then pay Self Assessment Tax for this amount. * Make Self Assessment tax entry and re 'Calculate Tax' and verify that amount in point no 18 is zero. * Check summary data such as Total Income, Tax payable, Interest payable, Taxes paid * After above steps completed for all sheets, click on Generate XML from any of the sheets. * This will take you to a Pre XML sheet for a final review of the return. * Review the number of rows entered in the various schedules and if modified, repeat Steps 1 to 9 * Click on 'Save XML' on the Pre XML sheet. * The XML file is now saved in the same folder in which the Excel utility is saved, and can be uploaded to e-filing onli....
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....ne portal. Time line to file return For the assessment year 2010-11 pertaining to financial year 2009-10, returns are to be filed now. In case of an individual, the last date for filing returns for the year ending March 31, 2010 is July 31, 2010, and for individuals who have to get their books of accounts audited under the Income Tax Act, it is September 30, 2010. If you file your returns after the last date, you will be charged a penal interest at the rate of 1% per month or part of the month of delay. However, if such a return is filed after March 31, 2011, apart from the penal interest, you will also be liable for a penalty of Rs. 5,000. The e-filing Process Gone are the days when you have to stand in queues to file your income tax returns. Now returns can be filed online though e-filing process. E-filing is the process of electronically filing Income tax returns through the internet. It is a simple process in which one needs to fill up the tax return form provided online and the other required information such as income, expenditure and savings. Thereafter, it is a matter of logging into the income tax website. Assessee should follow the following steps- * Select approp....
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....riate type of Return Form. * Download Return Preparation Software for selected Return Form. * Fill your return offline and generate a XML file. * Register and create a user id/password. * Login and click on relevant form on left panel and select "Submit Return". * Browse to select XML file and click on "Upload" button. * On successful upload acknowledgement details would be displayed. Click on "Print" to generate printout of acknowledgement/ITR-V Form. * Incase the return is digitally signed, on generation of "Acknowledgement" the Return Filing process gets completed. You may take a printout of the Acknowledgement for your record. * Incase the return is not digitally signed, on successful uploading of e-Return, the ITR-V Form would be generated which needs to be printed by the tax payers. This is an acknowledgement cum verification form. The tax payer has to fill-up the verification part and verify the same. A duly verified ITR-V form should be mailed to "Income Tax Department - CPC, Post Bag No - 1, Electronic City Post Office, Bangalore - 560100, Karnataka" by ordinary postonly within 30 days after the date of transmitting the data electronically. ITR-V sent by sp....
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....eed post, registered post or courier will not be accepted. In case, Form ITR-V, is furnished after the above mentioned period, it will be deemed that the return in respect of which the Form ITR-V has been filed was never furnished and it shall be incumbent on the assessee to electronically re-transmit the data and follow it up by submitting the new Form ITR-V within thirty days. This completes the Return filing process for non-digitally signed Returns. Since income tax returns are to filed by the assessees by 31st July, here are few simple steps to be followed for filing hassle free tax returns. The assessee may follow the following Simple Steps to e-filing of Tax Returns - · Identify the sources of income under the income heads, viz, Income from salaries, Income from house property, Income from capital gains (long term and short term), Income from business and profession and Income from other sources · Keep the documents ready and check out which documents will be required for calculating tax. · Choose the appropriate return ....
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....form. · Compute the gross total income by grossing up earnings from all five heads of Income to arrive at gross taxable income. · Calculate deductions by grossing up all Section 80C to 80U as allowed in income tax. · Allow deductions from gross total income. (4-5) · Compute total taxable income (rounded off), i.e. income on which Income tax is payable. · Find tax rates for the separate categories such as for women, senior citizens and 'others' · Calculate total income tax payable (including education cess and secondary and higher education cess) · Deduct the amount of relief (if any) from the total tax payable. · Take the credit of TDS, and advance tax. · Subtract amount of TDS and advance tax from tax liability to get the final amount to....
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.... be paid as tax. · Calculate the amount of interest u/s 234A, 234B and 234C (if applicable). · Provide full and correct bank details like name of the bank, address of the branch, Account number and MICR number for crediting the refund quickly in the bank account. · Identify the due date applicable to you and file Income tax return before the due date to avail the benefit of carry forward of business losses and losses under the head income from other sources. · Filing returns-You can file your returns offline (Physical mode) or online (e-filing). · E-filing can be done even on Sunday. · E filing is available round the clock except for planned maintenance activity. Documents to be preserved by assessee Since the tax-payer is not required to submit any additional documents along with the return of income, the documents may be called at the later stage by the Income Tax Officer to verify t....
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....he correctness of the claim made. Hence, it is advised that the individual preserve all the documents required to substantiate the return of income filed. Some of the documents could be the card with your Permanent Account number (PAN), known as the PAN card. You just need to mention the number in your tax return. The documents would include statement of computation of income and tax ,TDS certificates in form 16 or 16A as applicable, details of all bank accounts operated during the year with details of deposits, withdrawals and interest earned, certificates/receipts of payment of insurance premium, provident fund, investments in NSCs, new equity shares, mutual funds, NSS, medical insurance, donation, etc. in support of deduction claimed, audit report, balance sheet, trading, profit and loss account, personal account of proprietor or partners, statement of receipts and payment where no regular of books of accounts are maintained, Tax u/s 44AB wherever required, certificate of interest on housing loan from the lender, in support of deduction from house property income, other documents/statements in support of income and expenditure etc. The documents should be kept ready for a....
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....ny reference though documents are not supposed to be annexed to the return. These may how ever be required for verification at a later stage. ============= Document 1 FORM PERSONALINFORMATION AND THE DATE OF ELECTRONIC TRANSMISSION COMPUTATION OF INCOME AND TAX THEREON ITR-V INDIAN INCOME TAX RETURN VERIFICATION FORM [Where the data of the Return of Income in Forms Saral-II (ITR-1), ITR-2, ITR-3, ITR- 4, ITR-5 & ITR-6 transmitted electronically without digital signature] (Please see Rule 12 of the Income-tax Rules, 1962) Assessment Year 2010-11 Name (Also see attached instructions) Flat/Door/Block No Name Of Premises/Building/Village Road/Street/Post Office Town/City/District Area/Locality State Designation of Assessing Officer (Ward/ Circle) E-filing Acknowledgement Number 1 Gross total income 2 Deductions under Chapter-VI-A 3 Total Income За Current Year loss (if any) 4 Net tax payable 5 Interest payable 6 Total tax and interest payable PAN Form No. which has been electronically transmitted (fill the code) Status (fill the code) Original or Revised Date(DD/MM/YYYY) 1 2 3 За 4 5 7 Taxes Paid a Advance Tax ....
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....7a b TDS 7b Ñ TCS 7c d Self Assessment Tax 7d e Total Taxes Paid (7a+7b+7c +7d) 7e 8 Tax Payable (6-7e) 8 9 Refund (7e-6) VERIFICATION I, (full name in block permanent account number letters), son/ daughter of _solemnly declare that to the best of my knowledge and belief, the information given in the return and the schedules thereto which have been transmitted electronically by me vide acknowledgement number mentioned above is correct and complete and that the amount of total income and other particulars shown therein are truly stated and are in accordance with the provisions of the Income-tax Act, 1961, in respect of income chargeable to income-tax for the previous year relevant to the assessment year 2010-11. I further declare that I am making this return in my capacity as and I am also competent to make this return and verify it. Sign here → Date If the return has been prepared by a Tax Return Preparer (TRP) give further details as below: Identification No. of TRP Name of TRP Place For Office Use Only Receipt No Date Counter Signature of TRP Seal and Signature of receiving official Document 2 (d) in Appendix-II,- (i) for Form. No....
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..... 16 and Form No.16A, the following Forms shall be substituted, namely:- "FORM NO.16 [See rule 31(1)(a)] PART A Certificate under section 203 of the Income-tax Act, 1961 for Tax deducted at source on Salary Name and address of the Name and Designation of the Employee Employer PAN of the Deductor CIT(TDS) Address.. City. ..Pin code... TAN of the Deductor PAN of the Employee Assessment Year Summary of tax deducted at source Quarter Receipt Numbers of original statements of TDS under sub-section (3) of section 200. Amount of tax deducted in respect of the employee Quarter 1 Quarter 2 Quarter 3 Quarter 4 Total PART B (Refer Note 1) Details of Salary paid and any other income and tax deducted 1 Gross Salary Rs (a) Salary as per provisions contained in sec. 17(1) Rs (b) Value of perquisites u/s 17(2) (as per Form No.12BB, wherever applicable) Rs (c) Profits in lieu of salary under section 17(3)(as per Form No.12BB, wherever applicable) Rs. (d) Total 2 Less: Allowance to the extent exempt u/s 10 Allowance Rs Rs. Rs. Rs From Period Το Amount of tax deposited/remitted in respect of the employee 3 Balance(1-2) 4 Deductions....
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....: (a) Entertainment allowance (b) Tax on employment 5 Aggregate of 4(a) and (b) 6 7 Income chargeable under the head 'salaries' (3-5) Add: Any other income reported by the employee Income 8 Gross total income (6+7) 9 Deductions under Chapter VIA (A) sections 80C, 80CCC and 80CCD (a) section 80C (i) (iii) (iv) (v) (vi) (vii) (b) section 80CCC (c) Section 80CCD Rs. Note: 1. Aggregate amount deductible under section 80C shall not exceed one lakh rupees. 2. Aggregate amount deductible under the three sections, i.e., 80C, 80CCC and 80CCD shall not exceed one lakh rupees. (B) Other sections (e.g. 80E, 80G etc.) under Chapter VI-A. Rs. Rs Rs. Rs Rs Rs Rs Gross Amount Rs Rs Rs Rs Deductible amount Rs. Rs. Rs. Rs. Gross amount Qualifying amount Deductible amount (i) section.... Rs. Rs. Rs. (ii) section... Rs. Rs. Rs. (iii) section.... Rs. Rs. Rs. (iv) section. Rs. Rs. Rs. (v) section.. Rs. Rs. Rs. 10 10 Aggregate of deductible amount under Chapter VIA 11 12 13 14 Total Income (8-10) Tax on total income Education cess @ 3% (on tax computed at S. No. 12) Tax Payable (12+13) 15 Less: Relief under sect....
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....ion 89 (attach details) 16 Tax payable (14-15) Verification Rs Rs 2 2 Rs Rs. Rs. Rs Rs. I, son/daughter of . (designation) do hereby certify that a sum of Rs... ..working in the capacity of. ..[Rs. .....(in words)] has been deducted and deposited to the credit of the Central Government. I further certify that the information given above is true, complete and correct and is based on the books of account, documents, TDS statements, TDS deposited and other available records. Place Date Designation: Signature of person responsible for deduction of tax Full Name: Notes: 1. If an assessee is employed under more than one employer during the year, each of the employers shall issue Part A of the certificate in Form No. 16 pertaining to the period for which such assessee was employed with each of the employers. Part B may be issued by each of the employers or the last employer at the option of the assessee. 2. Government deductors to enclose Annexure-A if tax is paid without production of an income-tax challan and Annexure-B if tax is paid accompanied by an income-tax challan. 3. Non-Government deductors to enclose Annexure-B. 4. The deductor shall furnish ....
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....the address of the Commissioner of Income-tax (TDS) having jurisdiction as regards TDS statements of the assessee. 5. This Form shall be applicable only in respect of tax deducted on or after 1st day of April, 2010. Document 3 FORM NO.16A [See rule 31(1)(b)] Certificate under section 203 of the Income-tax Act, 1961 for Tax deducted at source Name and address of the Deductor Name and address of the Deductee PAN of the Deductor Address..... CIT(TDS) City. Amount paid/credited TAN of the Deductor PAN of the Deductee Assessment Year Period From To Pin code... Summary of payment Nature of payment Summary of tax deducted at source in respect of deductee Quarter Receipt Numbers of original quarterly statements of TDS under sub-section (3) of section 200 Amount of tax deducted in respect of the deductee Date of payment/credit Amount of tax deposited/remitted in respect of the deductee I. DETAILS OF TAX DEDUCTED AND DEPOSITED IN THE CENTRAL GOVERNMENT ACCOUNT THROUGH CHALLAN (The Deductor to provide payment wise details of tax deducted and deposited with respect to the deductee) S. No. Tax Deposited in respect of the deductee (Rs.) Book identificatio....
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....n number (BIN) Receipt numbers of Form No.24G DDO Sequence Number in the Book Adjustment Mini Statement Date on which tax deposited (dd/mm/yyyy) Total II. DETAILS OF TAX DEDUCTED AND DEPOSITED IN THE CENTRAL GOVERNMENT ACCOUNT THROUGH CHALLAN (The Deductor to provide payment wise details of tax deducted and deposited with respect to the deductee) S. No. Tax Deposited in respect of the deductee (Rs.) Challan identification number (CIN) Total (Rs.) BSR Code of the Bank Branch Verification Date on which tax deposited (dd/mm/yyyy) Challan Serial Number I, son/daughter of (designation) do hereby certify that a sum of Rs.............. …...........working in the capacity of . ..[Rs. ..(in words)] has been deducted and deposited to the credit of the Central Government. I further certify that the information given above is true, complete and correct and is based on the books of account, documents, TDS statements, TDS deposited and other available records. Place Date Designation: Signature of person responsible for deduction of tax Full Name: Notes: 1. Government deductors to fill information in item I if tax is paid without production of an....
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.... income-tax challan and in item II if tax is paid accompanied by an income-tax challan. 2. Non-Government deductors to fill information in item II. 3. In item I and II, in the column for TDS, give total amount for TDS, Surcharge (if applicable) and education cess. 4. The deductor shall furnish the address of the Commissioner of Income-tax (TDS) having jurisdiction as regards TDS statements of the assessee. 5. This Form shall be applicable only in respect of tax deducted on or after 1st day of April, 2010."; (ii) after Form No. 24, the following Form shall be inserted, namely:-<br> Scholarly articles for knowledge sharing by authors, experts, professionals ....