TAX TALK-29.06.2015-THE HITAVADA
TAX TALK
CA. NARESH JAKHOTIA
Chartered Accountant
A step-by-step guide to file income tax return
Query 1]
I am a salaried employee.
Please explain in detail regarding procedure of filling income tax return.
Also, please tell me whether I can fill it directly. Please explain in details
the procedure to be followed for filing income tax return? [Amol Sherkhane-sherkhane.a191@gmail.com]
Opinion:
With new
income tax return forms now notified, here is a step-by-step guide for filing income
tax returns. Income tax return filing may seem like a big deal for the
beginners. However, following sequential steps would make the task easy. July
31st is normally the last date for filing income-tax return for
salaried assessee. The best part is that it is extended to 31st August
for the AY 2015-16.
1.
Preparing statement of income:
First & foremost, assessee should prepare the statement of income by incorporating all the income including FD/SB Interest, exempt income details, capital gain, salary/rental income, loss brought forward & carried forward, investment eligible for deduction etc. Once income statement is ready, taxpayer should compute the tax & if there is any balance tax liability after considering TDS/advance tax paid, then pay it along with interest, if any. One should verify the tax details by downloading Form No. 26AS from www.incometaxindia.gov.in which shows all the details like TDS & other taxes paid in the relevant year.
First & foremost, assessee should prepare the statement of income by incorporating all the income including FD/SB Interest, exempt income details, capital gain, salary/rental income, loss brought forward & carried forward, investment eligible for deduction etc. Once income statement is ready, taxpayer should compute the tax & if there is any balance tax liability after considering TDS/advance tax paid, then pay it along with interest, if any. One should verify the tax details by downloading Form No. 26AS from www.incometaxindia.gov.in which shows all the details like TDS & other taxes paid in the relevant year.
2. Select correct ITR
forms for filing:
Before filing, taxpayer should ascertain the correct ITR forms in which return has to be filed. Make sure that the correct form is chosen for filing. If the wrong form is selected, it will be considered as a failure to file returns by the IT department. For salaried taxpayer without any business income, ITR-1, 2 or 2A may be applicable. Salaried taxpayer may refer last week’s issue of tax talk dated 22.06.2015 to know more about applicable ITR forms.
Before filing, taxpayer should ascertain the correct ITR forms in which return has to be filed. Make sure that the correct form is chosen for filing. If the wrong form is selected, it will be considered as a failure to file returns by the IT department. For salaried taxpayer without any business income, ITR-1, 2 or 2A may be applicable. Salaried taxpayer may refer last week’s issue of tax talk dated 22.06.2015 to know more about applicable ITR forms.
3.
Procedure for filing the returns:
I] Whether to file online or physically?:
Return of income can be filed either online or can filed physically in paper format. However, e-filing is mandatory if
a] the total taxable income exceeds Rs 5 lakh or
b] where the individual is an ordinary resident with foreign assets/or with the signing authority in an account outside India.
c] If there is refund due in the income tax return.
Even if taxpayers don’t fall in the above category, still option to voluntarily e-file income tax return is available.
II] Procedure for filing return online:
a] The online filing process starts by clicking the ‘register’ link at income-tax e-filing website www.incometaxindiaefiling.gov.in. For registration, one has to provide personal details like PAN, name as per the PAN card, father’s name, date of birth, email address and contact number. The website provides required flow to complete the registration process.
b] Download the applicable return preparation form from the website and fill in the personal information and income-related details in the downloaded form. To ensure that all columns in the return form are filled in properly, there is a process to validate the information by clicking on the ‘validate’ button on the last sheet.
c] On successful validation, access the ‘generate XML’ link in the tax return software and save the generated XML file. It is the XML file which is uploaded on the e-filing website. An acknowledgement form in ITR-V is generated on successful e-filing.
d] If the return is filed without using digital signature & without mentioning aadhar card, taxpayer would be required to take the print out of ITR-V, sign it in blue ink and dispatch it by ordinary/speed post to the Central Processing Centre (CPC), Bangalore within 120 days of uploading the return. On receipt of the signed ITR-V, tax department will send an email acknowledging the receipt of the ITR-V at the email id mentioned in the return form. There is no need to send ITR-V in the local office of the income-tax department. It may be noted that ITR-V is a password protected document & the password is PAN and date of birth in small case in continuation. [Using aadhar number is optional as of now. The government has come up with an idea of dispensing with the formality of forwarding the duly signed ITR-V form to CPC, Bengaluru, if the taxpayer provides with the Aadhaar number at the time of filing].
III] Procedure for paper filing:
One can take the printout of the ITR form from the above mentioned website. After filling all the relevant details like personal information, income details, tax deposit details in the hard copy, one can sign & submit the same with the jurisdictional assessing officer. The receiving office at the income tax office will stamp your acknowledgement and give a copy back to you. Assessee is not required to submit any other supporting documents with the tax return. Taxpayer may check the tax jurisdiction by logging at the above quoted income-tax department website.
I] Whether to file online or physically?:
Return of income can be filed either online or can filed physically in paper format. However, e-filing is mandatory if
a] the total taxable income exceeds Rs 5 lakh or
b] where the individual is an ordinary resident with foreign assets/or with the signing authority in an account outside India.
c] If there is refund due in the income tax return.
Even if taxpayers don’t fall in the above category, still option to voluntarily e-file income tax return is available.
II] Procedure for filing return online:
a] The online filing process starts by clicking the ‘register’ link at income-tax e-filing website www.incometaxindiaefiling.gov.in. For registration, one has to provide personal details like PAN, name as per the PAN card, father’s name, date of birth, email address and contact number. The website provides required flow to complete the registration process.
b] Download the applicable return preparation form from the website and fill in the personal information and income-related details in the downloaded form. To ensure that all columns in the return form are filled in properly, there is a process to validate the information by clicking on the ‘validate’ button on the last sheet.
c] On successful validation, access the ‘generate XML’ link in the tax return software and save the generated XML file. It is the XML file which is uploaded on the e-filing website. An acknowledgement form in ITR-V is generated on successful e-filing.
d] If the return is filed without using digital signature & without mentioning aadhar card, taxpayer would be required to take the print out of ITR-V, sign it in blue ink and dispatch it by ordinary/speed post to the Central Processing Centre (CPC), Bangalore within 120 days of uploading the return. On receipt of the signed ITR-V, tax department will send an email acknowledging the receipt of the ITR-V at the email id mentioned in the return form. There is no need to send ITR-V in the local office of the income-tax department. It may be noted that ITR-V is a password protected document & the password is PAN and date of birth in small case in continuation. [Using aadhar number is optional as of now. The government has come up with an idea of dispensing with the formality of forwarding the duly signed ITR-V form to CPC, Bengaluru, if the taxpayer provides with the Aadhaar number at the time of filing].
III] Procedure for paper filing:
One can take the printout of the ITR form from the above mentioned website. After filling all the relevant details like personal information, income details, tax deposit details in the hard copy, one can sign & submit the same with the jurisdictional assessing officer. The receiving office at the income tax office will stamp your acknowledgement and give a copy back to you. Assessee is not required to submit any other supporting documents with the tax return. Taxpayer may check the tax jurisdiction by logging at the above quoted income-tax department website.
Query 2]
Myself and my wife are pensioners. We
are filing income tax returns regularly. We are having savings bank accounts in
two banks. Accounts are operated by either of survivor, first name is mine. My
query is about exemption allowed on interest on savings bank accounts. If
interest accrued exceeds Rs. 10,000/-, what would be tax
treatment? Our SB Accounts are joint accounts .Can we show excess of Rs.
10,000/- interest amount in our return form? Please guide. [Eknath Kathale, N-162,
Reshim bagh, Nagpur- ekathale@gmail.com]
Opinion:
1. Section 80TTA
provides for deduction of interest on deposits in saving account up to a
maximum of Rs. 10,000/- only. Interest received over & above Rs. 10,000/-
is taxable. For example, if your
interest on SB A/c is Rs. 11,000/- then at the first instance Rs. 11,000/-
would be added to your income under the head “Income from other sources” and
thereafter Rs. 10,000/- deduction is required to be claimed in section 80TTA
under chapter VI-A.
2. In case of joint saving
bank accounts, interest would be taxable in the hands of the beneficial account
holder. As a tax management measures in such cases & in view of increasing
compliance burden of reporting all accounts in the ITR forms, taxpayers may now
consider opting for individual account instead of joint accounts.
[The author is a practicing Chartered Accountant
from Nagpur. Readers may send their direct tax related queries at SSRPN
& Co, 10, Laxmi Vyankatesh Apartment, C.A. Road, Telephone Exch. Square,
Nagpur-440008 or email it at nareshjakhotia@ssrpn.com]
Great job by the author, can't get better information on filing Income Tax Return Online then these. Thanks for sharing the wonderful information.
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