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Project On e Filing Income Tax Return Online
Project On e Filing Income Tax Return Online
ON
E-Filing of Returns
An Overview of the Process
Of e-Filing of Returns
SUBMITTED TO SUBMITTED BY
MR. SANJAY NOTIYAL ANSHU LALIT
(H.O.D.) MBA ROLL NO.180080500009
SESSION : 2018-19
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ACKNOWELEDGMENT
I am also thankful to all those seen and unseen hands & heads, which have
been of direct or indirect, help in the completion of this project.
2
CERTIFICATE
This is to certify that Anshu lalit has successfully completed the project
Administration. (M.B.A.)
Place:________________
Date: _________________
_________________________________
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EXECUTIVE SUMMARY
INDEX
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Sr. No. Particulars Pg. No.
1. INTRODUCTION
OBJECTIVE,MISSION & POLICIES 6
2. FIRM PROFILE 7
7. TYPES OF E-FILING 35
9. PROCESS OF E-FILING 38
12. BIBLOGRPHY 60
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INTRODUCTION:
OBJECTIVE:
MISSION:
VISION:
CUSTOMER PROMISE:
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They are passionate about their customers' success and promise to deliver
exceptional service with every meeting, interaction and dealing. They strive
exceptional service with every meeting, interaction and dealing. They strive
to offer simple, straightforward, friendly and trustworthy service.
FIRM PROFILE:
What we offer:
Our Philosophy:
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What makes us different?
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BASIC INFORMATION ABOUT TAX
Taxes in India are of two types, Direct Tax and Indirect Tax.
Direct Tax, like income tax, wealth tax, etc. are those whose burden
falls directly on the taxpayer.
The burden of indirect taxes, like service tax, VAT, etc. can be passed
on to a third party.
Income Tax is all income other than agricultural income levied and collected
by the central government and shared with the states.
According to Income Tax Act 1961, every person, who is an assessee and
whose total income exceeds the maximum exemption limit, shall be
chargeable to the income tax at the rate or rates prescribed in the finance act.
Such income tax shall be paid on the total income of the previous year in the
relevant assessment year.
Taxes in India are of two types, Direct Tax and Indirect Tax.
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Direct Tax, like income tax, wealth tax, etc. are those whose burden
falls directly on the taxpayer.
The burden of indirect taxes, like service tax, VAT, etc. can be passed
on to a third party.
Income Tax is all income other than agricultural income levied and collected
by the central government and shared with the states.
According to Income Tax Act 1961, every person, who is an assessee and
whose total income exceeds the maximum exemption limit, shall be
chargeable to the income tax at the rate or rates prescribed in the finance act.
Such income tax shall be paid on the total income of the previous year in the
relevant assessment year.
Residence Rules
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II. For 60 days during the year and 365 days during the preceding four
years. Individuals fulfilling neither of these conditions are
nonresidents. (The rules are slightly more liberal for Indian citizens
residing abroad or leaving India for employment abroad.)
A resident who was not present in India for 730 days during the preceding
seven years or who was nonresident in nine out of ten preceding yeas I
treated as not ordinarily resident. In effect, a newcomer to India remains not
ordinarily resident.
Non-resident Indians are not required to file a tax return if their income
consists of only interest and dividends, provided taxes due on such income
are deducted at source.
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Resident but not ordinary resident Taxable Not Taxable
Non-Resident Taxable Not Taxable
Also check Taxable Heads of Income for the definition of salary, wages,
pension, allowance, etc.
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PERSONAL TAX RATES
Up to 1,60,000
Up to 1,90,000 (for women) NIL
Up to 2,40,000 (for resident individual of 65 years or above)
1,60,001 – 3,00,000 10
3,00,001 – 5,00,000 20
5,00,001 upwards 30*
*A surcharge of 10 per cent of the total tax liability is applicable where the
total income exceeds Rs 1,000,000.
Note : -
Education cuss is applicable @ 3 per cent on income tax, inclusive of
surcharge if there is any.
A marginal relief may be provided to ensure that the additional IT
payable, including surcharge, on excess of income over Rs 1,000,000
is limited to an amount by which the income is more than this
mentioned amount.
Agricultural income is exempt from income-tax.
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time of credit or at the time of payment, whichever is earlier.
In case of senior citizen, if he/she estimates that the tax on the income is nil,
Form No.15H duly filled and signed is to be submitted in duplicate to the
bank. So, no TDS will be deducted. If the total income is less than the
threshold limit, Form No.15G is to be submitted to the payer to prevent TDS
from such interest.
Advance Tax
Advance Tax is paid by the income earner during the previous year. The
computing of the liability of advance tax is done by estimating the 'total
income' for the year, calculating the surcharge and taking into consideration
the rebate that will be available. The advance tax is required to be paid in
three installments.
If the assessee does not pays the advance tax as described above, an interest
of 1% is charged per month for 3 months for the deferment of advance tax
installment. If the total amount of advance tax is not paid on or before 15
March, an interest of 1% is charged for one month.
Further, if the total advance tax paid is less than 90% of the advance tax
payable, the interest at 1% per month is charged for the shortfall in the
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advance tax paid for the period commencing from 1 April of the assessment
year and ending on the date of payment or assessment, whichever is earlier.
The total income of a person is divided into five heads, viz., taxable.
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2. Income from House Property
3. Income from profits and gains of Business or Profession
4. Income from Capital Gains
5. Income from Other sources
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Income from Salary
Rent received
Municipal Valuation
Fair Rent (as determined by the I-T department)
If a house is not let out and not self-occupied, annual value is assumed to
have accrued to the owner. Annual value in case of a self occupied house is
to be taken as NIL. (However if there is more than one self occupied house
then the annual value of the other house/s is taxable.) From this, deduct
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Municipal Tax paid and you get the Net Annual Value. From this Net Annual
Value, deduct :
An example .. An architect works out of home and co-ordinates work for his
clients. All the following expenses would be deductible from his
professional fees.
he uses a computer,
he travels to sites in his car,
he has a peon to help him collect payments
He has a maid who comes in daily
part of the society maintenance bills
entertainment expenses incurred..
books and magazines for his professional practice.
The income referred to in section 28, i.e, the incomes chargeable as "Income
from Business or Profession" shall be computed in accordance with the
provisions contained in sections 30 to 43D.
The computation of income under the head "Profits and Gains of Business or
Profession" depends on the particulars and information available.
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assessee such as real estate, equity shares, bonds, jewellery, paintings, art
etc. but does not include some items like any stock-in-trade for businesses
and personal effects. Transfer has been defined under section 2(47) to
include sale, exchange, relinquishment of asset, extinguishment of rights in
an asset, etc. Certain transactions are not regarded as 'Transfer' under section
47.
For tax purposes, there are two types of capital assets: Long term and short
term. Long term asset are held by a person for three years except in case of
shares or mutual funds which becomes long term just after one year of
holding. Sale of such long term assets gives rise to long term capital gains.
There are different scheme of taxation of long term capital gains. These are:
1. As per Section 10(38) of Income Tax Act, 1961 long term capital
gains on shares or securities or mutual funds on which Securities
Transaction Tax (STT) has been deducted and paid, no tax is payable.
STT has been applied on all stock market transactions since October
2004 but does not apply to off-market transactions and company
buybacks; therefore, the higher capital gains taxes will apply to such
transactions where STT is not paid.
2. In case of other shares and securities, person has an option to either
index costs to inflation and pay 20% of indexed gains, or pay 10% of
non indexed gains. The indexation rates are released by the I-T
department each year.
3. In case of all other long term capital gains, indexation benefit is
available and tax rate is 20%.
All capital gains that are not long term are short term capital gains, which
are taxed as such:
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Under section 111A, for shares or mutual funds where STT is paid,
tax rate is 10% From Asst Yr 2005-06 as per Finance Act 2004. For
Asst Yr 2009-10 the tax rate is 15%.
In all other cases, it is part of gross total income and normal tax rate is
applicable.
For companies abroad, the tax liability is 20% of such gains suitably indexed
(since STT is not paid).
This is a residual head, under this head income which does not meet criteria
to go to other heads is taxed. Also there are also some specific incomes
which are to be taxed under this head.
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Sections 10,10A, 10AA, 10B, 10BA, and 13A deal with income which does
not form part of an assessee's total income. While section 10 provides a list
of income absolutely exempt from tax, sections 10A, 10AA, 10B, 10BA,
and 13A deal with specific exemptions available to newly established
industrial undertakings in free trade zones, and political parties. These
exemptions are provided from social, political, Constitutional
considerations, for avoiding double taxation, on the basis of casual and non-
recurring nature ,on the basis of non-residents and non-citizens status, on the
basis of Certain specific securities, bonds, certificates, funds and the like, on
the basis of Education, science, research, achievements, rewards, sports,
charity, on the basis of certain types of bodies, funds and institutions,
Subsidies to promote business, and international, economic, and other
considerations. Sikkim is the only state of India where citizens do not pay
income tax. Residents of Sikkim are eligible for this exemption but
excluding the non-Sikkimese spouse of a Sikkimese.
Dividends
Dividend income (as referred u/s 115-O of the I.Tax Act) paid by Companies
and Mutual Funds are exempt from tax. A 15% dividend distribution tax and
surcharge of 3% is paid by companies before distribution. Equity mutual
funds (with more than 65% of assets invested in equities) do not pay a
dividend distribution tax, though other funds do. Liquid and Money Market
funds pay 25% dividend distribution tax.01123
The Indian Income tax act specifically exempts certain income from tax:
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Money received from an Insurance company as proceeds of an
insurance policy (by way of an insurance claim, or by maturity) is
generally exempt. However there are three types of payments under
life insurance policy that are not tax free . These are :
Rebates
Section 80C
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INSERT (AY 2008-09)
Senior Citizens Savings Scheme 2004 and the Post Office Time Deposit Account
added to the basket of saving instruments under Section 80C of the Income Tax Act.
Section 80L used to allow deduction of interest earned on, say, a National
Savings Certificate or a bank deposit up to a limit of Rs 12,000. But now all
these are gone .In their place has come Section 80C -- "u/s 80CCC, & u/s
80CCD", as the Finance Bill puts it. Thus, the new Section 80C of the
Income Tax Act proposed in Union Budget gives you a bigger tax break than
what the current regime offers.
Deduction in respect of Life Insurance Premium, Contribution to
Provident Fund, etc.
Rs 1 lakh can be invested under this section without any individual
sub-limits except in the case of Rs 10,000 in pension funds.
Sections 88, 80L, 80CCC and 80CCD is clubbed in.
Life Insurance
Senior Citizen Saving Scheme 2004
Post Office Time Deposit Account
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Note : - Section 80CCC is for deduction in respect of contribution to certain
Pension Funds. Section 80L is for deductions in respect to Interest on certain
Securities, Dividends, etc
Section 10(33)
Dividends from mutual funds are fully exempt from income tax under Section 10(33).
Equity funds (schemes that invest 50 per cent of their funds in equity) are also exempt
from dividend tax. This means that unlike companies, they do not have to pay tax at the
rate of 10.2 per cent on the dividend that they distribute.
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INSERT (AY 2008-09)
Coir Board included in Section 10(29A) and exempted from income tax.
Section 88
Upto 31 March 2005, rebates were available on the tax payable under three
sections.
According to the section, 30 per cent or 20 per cent or 15 per cent of the
amount invested in certain schemes (schemes referred in Section 80C) was
available as a rebate on the tax payable.
30 per cent of the amount invested was available as rebate only if the
salary income of the individual was less than Rs. 1 lakh and if it
constituted 90 per cent or more of the assessee's gross total income.
20 per cent of the amount invested was available as rebate if the gross
total income of the individual was less than Rs 1.5 lakh and the case
did not fall under the above mentioned case.
If gross total income was more than Rs. 1.5 lakh but less than Rs 5
lakh of the individual, a rebate of 15 per cent of the amount invested
was available.
If gross total income was more than Rs 5 lakh of the individual, then
there is no rebate.
Section 88B
Under this section, an individual resident in India and above the age of 65
years was allowed to a maximum rebate of Rs. 20,000 on the tax payable.
Section 88C
Under this section a lady resident in India, aged below 65 years, was allowed
a maximum rebate on the tax payable of Rs 5,000.
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Section 89 (1)
This is available to an employee when he receives salary in advance or in
arrear or when in one financial year, he receives salary of more than 12
months or receives 'profits in lieu of salary' W.e.f. 1.6.89, relief u/s 89(1) can
be granted at the time of TDS by employees of all companies co-operative
societies, universities or institutions as well as govt./public sector
undertakings. The relief should be claimed by the employee in Form No.
10E and should be worked out as explained in Rule 21A of the Income Tax
Rules.
Deductions
Section 80CCC
Any individual who makes a contribution for any annuity plan of the Life
Insurance Corporation of India or any other insurer is eligible for a
deduction of the amount paid or Rs. 10,000, whichever is less. When an
individual or his nominee receives any amount under the following
circumstances it will be taxed as the income of the individual or his
nominee, in the year of withdrawal or the year in which the pension is
received:
On the surrender of the annuity plan or
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As pension received from the annuity plan.
Section 80CCD
When the individual or his nominee receives any amount out of the scheme
which meets the following descriptions, it shall be taxed in the hands of the
recipient.
On closure/ opting out of the pension scheme; or
As pension received from the annuity plan.
The term 'salary' here includes Dearness Allowance (if considered for
retirement benefits), but it excludes other allowances and perquisites.
The aggregate deduction under the Sections 80C, 80CCC and 80CCD
cannot exceed Rs 1 lakh as whole.
Section 80D
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Any Premium which is paid for medical insurance that has been taken on the health of the
assessee, his spouse, dependent parents or dependent children, is allowed as a deduction,
subject to a ceiling of Rs 10,000.
Where any premium is paid for medical insurance for a senior citizen, an enhanced
deduction of Rs 15,000 is allowed. The deduction is available only if the premium is paid
by cheque.
Section 80DD
Deduction under this section is available to an individual who:
Incurs any expenditure for the medical treatment, training and
rehabilitation of a disabled dependant; or
Deposits any amount in schemes like Life Insurance Corporation for
the maintenance of a disabled dependant. An annuity or a lump sum
amount is paid to the dependant or to a nominee for the benefit of the
dependant in the event of the death of the individual depositing the
money, from the said scheme,
If the death of the dependant occurs before that of the assessee, the amount
in the scheme is returned to the individual and is taxable in his hands in the
year that it is received.
The term 'dependent' here refers to the spouse, children, parents and siblings
of the assessee who are dependant on him for maintenance and who
themselves haven't claimed a deduction for the disability in computing their
total incomes.
Note:- For the complete list of disease specified, refer to Rule 11DD of the
Income Tax Rules.
The individual should furnish a certificate in Form 10-I with the return of
income issued by a specialist working in a government hospital.
Section 80E
INSERT (AY 2009-10)
Deduction under section 80E of the Income-tax Act allowed in respect of interest on
loans taken for pursuing higher education in specified fields of study to be extended
to cover all fields of study, including vocational studies, pursued after completion of
schooling.
The deduction is available for the first year when the interest is paid and for
the subsequent seven years. Up to March 2005, deduction was available for
the repayment of principal and interest aggregating to Rs 40,000 a year.
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Section 80U
It is deduction in the case of a person with a disability. An individual who is
suffering from a permanent disability or mental retardation as specified in
the persons with disabilities (Equal Opportunities, Protection of Rights and
Full Participation) Act, 1995 or the National Trust for Welfare of Persons
with Autism, Cerebral Palsy, Mental Retardation and Multiple Disabilities
Act, 1999, shall be allowed a deduction of Rs 50,000. In case of severe
disability it is Rs. 75,000.
Donations
Section 80G
The deduction is available only for the entity to which donations is made is
an approved charitable institution by the government. A receipt of the
institute, in evidence made, should be attached to the return of income.
Section 80GG
Under this section a non-salaried person or a salaried person, if, not getting
house rent allowance, he/she can claim to the deduction for the rent he pays
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for a residential accommodation. The deduction available is least of the
following:
Rent paid in excess of 10 per cent of total income.
25 per cent of total income.
Rs 2,000 per month.
The total income of the individual is computed after reducing the amount
deductible under other sections, receipts exempt from tax, and long-term &
short-term capital gains taxable at concessional rates.
The deduction is not available if the assessee or his spouse or minor child
owns the accommodation in which he stays or works, or carries on his
business or profession. Deduction is even not allowned, if the assessee owns
a house in any other place, and the concession in respect of self-occupied
house is claimed by him.
Section 80GGA
An individual, who is not engaged in any business or profession, is eligible
for a deduction of the amount donated to certain institutions engaged in
scientific research, rural development, etc.
Section 80GGC
It is the deduction in respect of contributions given by any person to political
parties. An individual shall be allowed to a deduction of any amount
contributed by him to a political party.
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INCOME TAX E-FILING
Anywhere-Anytime Filing
No long queues
No Personnel Interface
Quick Processing
Accurate data in return
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Paid taxes, made your tax saving investments... now get geared up for filing
income tax returns as the month of July is on the horizon and the time has
come when one is supposed to file IT returns.
In the year 2007 the Income Tax Department of India took many initiatives
such as training TRPS, launching saral forms in a new avatar and so on for
making tax filing convenient and handy for the citizens.
Yes, using the e-filing process one can file in tax returns just within a few
clicks at any time of the day and that too without any hassles. Using this
technology all you have to do is fill the form and submit it, online or offline.
The e-filing process is really easy and takes a very little time and all you
have to do is fill up your tax return form online provided and the other
required information about income, expenditure and savings. Filing tax
returns online is the easiest and the simplest method and all one needs is to
log on and follow the simple instructions.
For e- filing process one needs to have a software application that generates
the income tax form, which is available at the Income Tax Department
website.
Benefits of e-Filing:
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TYPES OF E-FILING
There are three ways to file returns electronically.
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Option 1: Use digital signature, in which case no further action is
required.
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Documents required for e-filing
• Property details
• Birth date
• TAN number
• Bank A/c no
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PROCESS OF E-FILING
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12 Step Process for Filing Tax Returns
Whether you wish to go in for the quick e-filing process or manually file
your income tax returns, here is a helpful guide to assist you in completing
and submitting this vital document by yourself.
2) Click the link eFile Income Tax Return at the top left corner of the
home page
3) Select the Correct Form - There are two income tax forms for salaried
individuals. ITR-1 is for those who derive their income from salary, pension
or interest while ITR-2 is for income from capital gains, house property and
other sources. Those who wish to submit their tax returns manually may
download the pdf forms - External website that opens in a new window from
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here. These forms need to be printed, filled by hand and signed before submitting to your
local income tax office.
3 Income/Loss from
▪ ▪
Other Sources
4 Income/Loss from
▪ ▪
House Property
5 Capital Gains/Loss on
sale of ▪ ▪
investments/property
6 Partner in a partnership
▪
Firm
7 Income from
Proprietary
Business/Profession
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For Association of Persons (AoP), Body of Individuals (BoI), Local Authority, Companies,
Trusts, Fringe Benefit Tax (FBT) Return
Select appropriate Income Tax ITR-5 ITR-6 ITR-7 ITR-8
Return (ITR) Preparation
Software Firms, Companies Trusts Only
AoP, FBT
BoI,
LA
1 Income/Loss from
▪ ▪ ▪
Other Sources
2 Income/Loss from
House Property ▪ ▪ ▪
3 Capital Gains/Loss on
sale of ▪ ▪ ▪
investments/property
4 Income/Loss from
Business ▪ ▪ ▪
ITR-1
This Form can be used by an individual whose total income during the
previous year i.e., financial year 2008-09 includes income chargeable to
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income-tax under the head “salaries” or income in the nature of family
pension as defined in the Explanation to clause (iia) of section 57 but does
not include any other income except income by way of interest chargeable to
income-tax under the head “income from other sources”. There should not
be any exempt income other than agriculture income and interest income. It
may please be noted that a person who is entitled to use this form shall not
use Form ITR-2. Further, a person in whose income the income of other
person like his/ her spouse, minor child, etc. is to be clubbed is also not
entitled to use this form.
ITR-2
ITR-3
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ITR-5
This Form can be used a person being a firm, AOP, BOI, artificial juridical
person referred to in section 2(31)(vii), cooperative society and local
authority. However, a person who is required to file the return of income
under section 139(4)(a) or 139(4)(a) or 139(4)(b) or 139(4)(c) or 139(4)(d)
shall not use this form.
ITR-6
ITR-7
This Form can be used by persons including companies who are required to
furnish return under section 139(4A) or under section 139(4B) or under
section 139(4C) or under section 139(4D).
ITR-8
This Form is applicable in case of a person who is not required to furnish the
return of income but is required to furnish the return of fringe benefits
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software is an excel file that requires one to type in personal details as well
as financial information from TDS certificates, bank statements, deductions
made and interest statements.
5) Generating an XML file - After keying in the details, check once for
accuracy. After you are satisfied, click the 'Generate' button to create your
tax return in XML format. This format helps in sharing of structured data
across different information systems. Save this XML file on your computer.
6) Register - The next step requires you to Register at the Income Tax
website - External website that opens in a new window. Your registered
Permanent Account Number (PAN card) has to be entered as your username.
7) Login - After registering, enter your user id and password to login. Click
on the relevant form on the left panel and select 'Submit Return'.
8) Upload XML - Browse to select the XML file, which you had generated
and saved in Step 3. Click on the 'Upload' button to upload the file.
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10) Digital Signature - If your income tax return was digitally signed, then
no further paperwork or visit to the income tax office is needed. Here is
some information about how to get a digital signature - External website that
opens in a new window.
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down load a copy of such duly filled Form and verify under your signature
in the space provided. In case the return was prepared by a Tax Return
Preparer (TRP), the particulars of TRP be also filled and this verification
form be countersigned by the TRP.
3. This acknowledgement in Form ITR-V duly signed by the assessee needs
to be filed physically (in duplicate) with the concerned Assessing Officer.
One copy of this acknowledgement would be returned back to the assessee
for his record.
4. The codes for the form number and the status of the assessee shall be
generated electronically by the Department’s server.
11) Verification - If your return is not digitally signed, then you need to
print and fill up the verification part of the acknowledgement cum
verification form (ITR-V). This has to be signed and submitted to the local
Income Tax Office within 15 days to complete the e-filing process.
12) Additional Assistance - In case you require any more help in filing the
paper copy of the return, please contact the Public Relations Officer at your
local Income Tax Office. One may also phone the Aayakar Sampark Kendra
(ASK) call centre at 124-2438000 or email at ask@incometaxindia.gov.in.
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Frequently Asked Questions
1 Who is liable to file the income-tax return ?
2 What is the assessment year ?
3 What are the due dates for filing of income tax returns where primary source of
income & 'salary' ?
4 Which is the prescribed form for filing of income tax returns for assesses having
income from salary ?
5 What are various heads of income ?
6 How to pay the tax under the income tax act ?
7 What are the rates of income tax?
8 How is the penal interest calculated?
9
How is interest calculated for late or non-furnishing of return ?
10
If the tax payer fails to pay 90% tax plus applicable interest(s), then how is
interest for short payment of such advance-tax calculated?
11 How is interest for deferment of advance-tax calculated?
12
What are the important points to remember while filing the income tax return?
13
Why is father's name even in the case of married lady accesses to be given in the
verification portion of the return?
14 Who can verify and sign the income-tax return?
15 If the return is not signed by the proper person or if it is unsigned, what is the
legal implication?
16 Where to file the income tax return?
17 Where to deliver the income-tax return?
When the total income from all sources of income of any person exceeds the
maximum amount which is not chargeable to income-tax in any previous
year ending on 31st March then that person is liable to file the Income Tax
Return.
Section 139(1) of the Income-tax Act has been amended w.e.f. AY 97-98
with a view to bring larger number of persons in the tax net. In order to
increase the tax-base now any person who satisfies any one of the six
conditions viz. is owner of a vehicle, or, occupies specified floor area of an
48
immovable property or incurs expenditure for himself or any other person on
foreign-travel or subscribes to a telephone or Credit Card or is a Club
member, then he is required to file a return.
Besides such persons, any other person who is to claim a refund, or carry
forward losses (for example loss under the head 'Income from property') or
who seeks any other benefit (for example, a deduction income of a blind
individual) may also file the Income-Tax Return. It is important to note that from
the Assessment Year 1993-94 onwards, the return of income has to be compulsorily filed
if the income of an individual exceeds the basic exemption limit.
Assessment year is the period of 12 months succeeding the relevant previous year (i.e. the
accounting year) ending on 31 st march. for example, a. y. 2002-2003 is for the period of
twelve months starting from 1-4-2001 and ending with 31-3-2002.
What are the due dates for filing of income tax returns where primary
source of income & ‘salary’?
In the case of an assesses earning income from Salary primarily, the due date for filing
the Income Tax return is 30th June of the assessment year. For example, the due date for
A.Y. 2002-2003 would be 30 th June 2002.
Which is the prescribed form for filing of Income Tax returns for
assesses having Income from salary?
The assesses enjoying salary income, and whose total income does not
include income under the head 'Profits and Gains of Business or Professional
has to file his income-tax Return in Form No. 3. He can also file the Return
in Form No. 2A if his net taxable income is Rs.2.0 lakhs or less and if
following conditions are satisfied :-
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a) There is no income from business or profession;
Accesses fulfilling the above conditions, have the option , of using even the
existing Form No. 3 in place of Form No. 2A. They can also file their
returns in 'Salary'form. 5
a) Salaries;
While computing income from the above mentioned different heads, the procedure is:-
First, the taxable income from each source is to be computed under each head of income
by allowing deductions, and then they are aggregated. For example, in the case of an
assesses deriving income from salary, house property, and Interest income from Fixed
Deposit in a Bank, firstly, the taxable income under the head 'salaries', then 'Income from
House Property, and lastly the taxable income under the head 'Income from other sources'
for Bank interest etc. will be computed.
Thereafter, all the three incomes under the three heads would be aggregated. From this
amount, certain eligible deductions would then be deducted to arrive at the net taxable
income on which tax is chargeable.
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income from 'salary' is under obligation to deduct, certain amount of 'tax,
from such payment(s) made during the financial year. Such deduction from
the payment is called 'Tax Deducted at Source' i.e. TDS. The person making
this TDS is obliged to pay such tax to Central Government within the
prescribed time limits.
The assesses may furnish to his employer particulars of his income under
any head other than "salary", and of any tax deducted at source thereon in
the prescribed Form No. 12C. The employer shall take such other income
and tax, if any, deducted at source from such income, into account for the
purpose of computing the TDS from his salary income. However, this
aggregation is not permitted in case such income under any other head
(except loss from house-property) is a loss. This loss (except loss from
house-property) is not permissible to be adjusted by the person paying salary
but can be claimed as deduction at the time of filing of return and a refund
sought.
In order to remove any difficulty in obtaining such refund, the assesses may
make an application in Form No. 13 to his Assessing Officer, and, if the
Assessing Officer is satisfied that the total income of the tax payer justifies a
lower rate of deduction or no deduction at all he may then issue an
appropriate certificate to that effect which should be taken into account by
the person making the payment of salary while deducting tax at Source.
In case the assessesdoes not wish to furnish particulars of his income under
other heads to his employer then he has to estimate his total taxable income
under the different heads of income during the previous year, and pay tax
thereon during the financial year itself, (after excluding the tax deductible at
source), by the due dates specified under the Income-tax Act. These
payments are called "Advance Tax Payments".
The due dates and the percentage of installment of Advance Tax for
individuals are mentioned herein below :-
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1st on or 15th September. Amount not less than
before 30% of such advance tax
However, the liability for payment of advance tax arises only where the
amount of such tax payable by the assesses during that year is Rs.5,000 or
more.
Also, any amount paid by way of Advance Tax on or before the 31st March
of that year, is treated as Advance Tax Paid during that Financial Year.
After the return is prepared, and the net taxable income finally determined, it
may so happen that, after taking into account the amount of TDS and
Advance Tax, if any, already deducted/paid still some tax or interest
(payable for delay in furnishing the return or delay in payment of advance
tax) remains to be paid.
This amount should be paid as 'self-assessment tax 1' before furnishing the r
eturn.
It is, therefore, important to note that before furnishing the return, the
assessee has to pay the entire .tax and interest, if payable, and the proof of
such payment of taxes has to be attached with the return.
It is also to be noted that 'tax' includes applicable Interest' chargeable under various
provisions of the LTV, Act, 1961.
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In the case of an individual, the rates of Income tax for A.Y. 2001-2002 and
A.Y. 2002-2003 are given herein below
Where the assessee has defaulted in timely furnishing of his return of income or where he
has to pay advance tax, then penal interest is chargeable for Non/Late filing of return or
Non-payment/short payment/deferment in payment of such advance tax.
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INTEREST U/8. 234-A FOR LATE OR NON-FURNISHING OF INCOME
TAX RETURN
For defaults in furnishing 'Return of income': Simple interest @ 1.25% for every month
or part of a month from the due date of filing of the return to the date of furnishing of the
return. The interest is calculated on the amount of the tax on the total assessed income as
determined under subsection (1) of section 143 or on regular assessment u/s 143(3) as
reduced by the Advance Tax, if any, paid and any tax deducted or collected at source.
If the tax payer fails to pay 90% tax plus applicable interest(s), then
how is interest for short payment of suuch advance-tax calculated?
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1. If no advance tax is paid or the Simple interest @ 1.25%p,m. is
advance tax paid in 1 st chargeable on the amount of
instalment on or before 15 th shortfall for a period of 3 months
September is less than 30% of
the tax payable on threturned
income as reduced by taxes
deducted at source
What are the important points to remember while filing the income tax
return?
The name and address must be written in block letters and while filling up
the same in the cages meant for the same, one cage may be left blank after
each word. As the Income-tax Returns are to be generally filed on the basis
of territorial jurisdiction, any mistake in the address may dislocate the return
which will cause undue delay in finalisation of the assessment.
b) Assessment Year:
c) Revised Return :
Proper particulars of the original return are to be mentioned in case the I.T.
return is a revised return.
d) P.A.N/GIR Number :
The assessee's PAN/GIR Number should be correctly filled so that the return
reaches the concerned Assessing Officer.
e) Status :
Correct code numbers of the assessee's status i.e. individual, H.U.F., Firm,
Company, B.O.I., A.O.P. etc. and residential status i.e. Resident in x India or
Not Ordinarily Resident in India ( complete details of stay in India ought to
be attached) must be filled in as per the Notes attached to the Income Tax
Return.
The original T.D.S. certificates and challans for payments of advance tax and
self assessment tax should be attached to the I.T. return and proper details
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are to be furnished under the head Statement of Taxes. These documents
may be listed under the head: List of Documents/Statements attached.
g) Document(s)/Annexure(s) Attached :
The particulars of income which is not included under any head of income
and claimed as exempt from tax must be mentioned in the relevant part of
the I.T. Return under the head 'Income Claimed Exempt',
i) Verification :
This is required for proper identification, as in the PAN Forms, the requirement is to fill
up the father's name, to ensure a PAN for life.
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The individual filing his Income Tax return has to sign the return. In case the
individual is mentally incapable, then the return may be signed by his
Guardian or by any other person competent to sign on his behalf.
In case the individual is absent from India or because of any other reason he is not able to
sign and verify his return of income, then any person duly empowered by him through
valid Power of Attorney may sign on his behalf. In such case, a certified copy of the
Power of Attorney must accompany the return.
An existing assessee must file his Income Tax return with the Assessing
Officer who had previously assessed him or with the Assessing Officer
where his case stands transferred.
Normally, there are separate wards for the assessees earning income from
salary. These wards/circles, have been assigned separate jurisdiction for
separate classes of assessees, like assessees deriving salary income from
Government or from- private employers. Similarly, the assessees deriving
Income less than Rs.10 lacs may be assessed in a 'Ward' whereas the
assessees deriving income above Rs.10 lacs may be assessed in a 'Circle 1 .
A new assessee should file his Income-tax Return with the Assessing Officer
having territorial jurisdiction over the area where he resides, or the
Assessing Officer having special jurisdiction over the specific assessee or
class of assessees or class of income.
In case of any doubt, the I.T.O. (Public Relations) or the I.T.O. (Headquarters) may be
contacted to know the jurisdiction for filing the Income-Tax Return.
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The Income-Tax Return may be delivered either at the Dak Receipt Counter
in the Range/Ward/Circle having jurisdiction over the assessee or the return
may be sent through registered post.
When the return is delivered at the Dak Counter, the official manning the
counter returns one copy of the acknowledgement form attached with the
return after signing, stamping, and numbering it. The date of filing the return
is also prominently displayed on the acknowledgement handed over to the
assessee.
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• Also the corporate remains a very important segment which gets business
in bulk but retail cannot be ignored which makes your business ticking.
• Customer remains in the pivotal position.
CONCLUSION:
Under the umbrella of my project, we the participants of this project were
glad to understand the design and pattern of income tax e-filing online. My
experience with the various customers of the various companies was totally
different and gave us an edge adding to my knowledge.
BIBLIOGRAPHY:
Websites:
www.incometaxindiaefiling.gov.in
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www.valueplus.njfundz.com
www.incometaxindia.gov.in
www.legalserviceindia.com
www.finance.indiamart.com
Reference books:
1. BASIC PRINCIPLES OF INCOME TAX LOWS
2. HOW TO SAVE YOUR TAX
3. BASIC INCOME TAX TIPS
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