LIVE PROJECT
E-Filing of Returns An Overview of the Process Of e-Filing of Returns
A Project Report su!itte" in p#rti#l fulfill!ent of the re$uire!ent for %#ster in &usiness A"!inistr#tion A"!inistr#tion '%(&(A)
*+&%ITTE, &
PRA*.A/T JA,.AV JA,.AV +n"er the gui"#nce of
%r(Ashwin %r(Ashwin 0#w#n"e( Location Head. The NIS Academy.
%r( *+/IL JA,.AV Manager- Marketing &Sales. Value Plus onsultancy. onsultan cy.
The /I* Ac#"e!1 %u!#i-233345
!
AC6/O7ELE,0E%E/T
"ne o# the $leasant as$ects o# $re$aring a $ro%ect re$ort is the o$$ortunity to than thank k to thos thosee ho ho ha'e ha'e cont contri ri(u (ute ted d to make make the the $ro% $ro%ec ectt com$ com$le leti tion on $ossi(le.
%r(*unil *unil j#"h#v j#"h#v 8 %r( %r(Ashwin Ashwin 0#w#n"e( 0#w#n"e( I am e)trem e)tremel ely y than thank# k#ul ul to %r(
hos hosee acti acti'e 'e inte intere rest st in the the $ro% $ro%ec ectt and and insi insigh ghts ts hel$ hel$ed ed us #orm #ormul ulat ate* e* rede#ine and im$lement our a$$roach toards the $ro%ect.
I am also thank#ul to all those seen and unseen hands & heads* hich ha'e (een o# direct or indirect* hel$ in the com$letion com$letion o# this $ro%ect.
+
CERTIFICATE
This is to certi#y that Prashant Shi'a%i ,adha' has success#ully com$leted the $ro%ect ork as $artial #ul#illment o# the reuirement #or Master in usiness Administration. /M..A.0
/#!e #n" *ign#ture of Project 0ui"e
Pl#ce9:::::::::::::::: 11111111111111111 ,#te9 11111111111111111
::::::::::::::::::::::::::::: ::::::::::::::::::::::::::::::::: :::: *ign#ture of the Loc#tion .e#" of T.E /I* ACA,E% 0un"ech# Oncl#ve; 2th Floor; 6her#ni Ro#"; *#
2
E=EC+TIVE *+%%AR
I* Prashant ,adha' ha'e done my $ro%ect in VAL34 PL3S "NS3LTAN5. This is a leading com$any in $ro'iding #inancial ser'ice. The main o(%ecti'e o# my $ro%ect as a(out 6 e-Filing of Returns>. The $ro%ect contains a detailed study o# income ta) and e-#iling. I am 'ery $ri'ilege to ork in this com$any. It as a great e)$osure to learn a(out income ta) return and online transaction etc.
7
I/,E=
*r( /o( ?(
P#rticul#rs
Pg( /o(
I/TRO,+CTIO/ O&JECTIVE;%I**IO/ 8 POLICIE*
@
5(
CO%PA/ PROFILE
4
(
&A*IC I/FOR%ATIO/ A&O+T TA=
?3
2(
TA=A&LE .EA, OF I/CO%E TA=
?@
B(
TA= &E/IFITE* - ,E,+CTIO/*; RE&ATE* 8 ,O/ATIO/*
5
@(
I/CO%E TA= E-FILI/0
4(
TPE* OF E-FILI/0
B
(
PROCE** OF E-FILI/0
D
?3(
FRE+E/TL A*6E, +E*TIO/
24
??(
*+%%AR 8 CO/CL+*IO/
B
?5(
&I&LO0RP.
@3
I/TRO,+CTIO/9 8
O&JECTIVE9 •
•
•
•
•
To #ind the market $otential and market $enetration o# #inancial $roduct o##erings in Mum(ai and local area near(y them. To collect the real time in#ormation a(out $re#erence le'el o# customers and gi'e the (est solution To e)$and the market $enetration on #inancial ser'ice To $ro'ide $ricing strategy o# com$etitors to #ight cut throat com$etition. To increase the $roduct aareness o# Value Plus onsultancy as single indo sho$ #or in'estment solutions.
%I**IO/9
To create long term 'alue (y em$oering indi'idual in'estors through su$erior #inancial ser'ices su$$orted (y culture (ased on highest le'el o# teamork* e##iciency and integrity. VI*IO/9 •
• •
To $ro'ide (est 'alue #or money to in'estors through inno'ati'e $roducts. Trading9In'estments Strategies State o# the art technology and $ersonali:ed ser'ice.
C+*TO%ER PRO%I*E9
They are $assionate a(out their customers; success and $romise to deli'er e)ce$tional ser'ice ith e'ery meeting* interaction and dealing. They stri'e to o##er sim$le* straight#orard* #riendly and trustorthy ser'ice. CO%PA/ PROFILE9 <
VAL+E PL+* CO/*+LTA/C
0IVE %I,A* TO+C. TO O+R I/VE*T%E/T*
IT IS A PA=T "> E%PIRE 0RO+P OF CO%PA/IE*
VAL34 PL3S is solely & holly dedicated #or in'estors. VAL34 PL3S is an in'estment su$ermarket o##ering Li#e Insurance* Mediclaim* Vehicle Insurance* Pro$erty Insurance* Postal Schemes* and More than und Schemes and >i)ed @e$osits o# uality com$anies* =I =elie# onds* @e(entures and Shares. It is engaged in $ro'iding #inancial $lanning o# in'estor as $er their needs and technology (ased ser'ices to in'estors to e##ecti'ely manage their $ort#olio.
VAL34 PL3S TodayB o o
"ne o# the largest distri(utors o# Mutual >unds in Mum(ai. Ha'ing o'er +??? satis#ied customers.
Chat e o##erB o o o o
om$lete >inancial Planning & In'estments solution True client-#ocused* need-(ased in'estment ad'isory ser'ices To$ uality $roducts #or managing in'estments Duality ser'ices and su$$ort to clients
"ur Philoso$hyB o o o
Ce (elie'e in long-term ealth creation #or our clients. Ce (elie'e in Asset Allocation $rinci$le #or ealth creation. Ce are not guided (y the short-term $ro#it making* timing markets* etc e do not (elie'e in them. o Ce (elie'e that mutual #unds* as an in'estment $roduct* can (e e##ecti'ely used to success#ully meet the di##erent needs o# di##erent clients. o Pro'ide clients ith solutions that truly meet their needs and ha'e high uality $roducts and ser'ices* (etter that anyone else can $ro'ide.
Chat makes us di##erentE o o
"ur Philoso$hy and the ay e carry it. Very strong domain knoledge o# mutual #unds ith 'ery strong #ocus on it. o "ur technology is the $ro(a(ly the (est in the industry. o The Products and the ontents are 'ery com$rehensi'e* ellstructured and o# high uality. o The sco$e and the de$th is $ro(a(ly unmatched (y any other @istri(utor or ank. F
o
In-house =esearch Team to study and analyse schemes* markets* economy* e'ents etc. o Money Corld ustomer are - A dedicated de$artment #or e##ecti'e and uick resol'ing o# ueries and reuests. o Team o# Duali#ied & ell trained $eo$le
&A*IC I/FOR%ATIO/ A&O+T TA= G
•
•
•
Ta)es in India are o# to ty$es* @irect Ta) and Indirect Ta). @irect Ta)* like income ta)* ealth ta)* etc. are those hose (urden #alls directly on the ta)$ayer. The (urden o# indirect ta)es* like ser'ice ta)* VAT* etc. can (e $assed on to a third $arty.
Income Ta) is all income other than agricultural income le'ied and collected (y the central go'ernment and shared ith the states. According to Income Ta) Act !G
Resi"ence Rules
An indi'idual is treated as resident in a year i# $resent in India
!?
I. II.
#or !F+ days during the year or #or
A resident ho as not $resent in India #or 2? days during the $receding se'en years or ho as nonresident in nine out o# ten $receding yeas I treated as not ordinarily resident. In e##ect* a necomer to India remains not ordinarily resident. >or ta) $ur$oses* an indi'idual may (e resident* nonresident or not ordinarily resident. /on-Resi"ents #n" /on-Resi"ent In"i#ns
=esidents are on orldide income. Nonresidents are ta)ed only on income that is recei'ed in India or arises or is deemed to arise in India. A $erson not ordinarily resident is ta)ed like a nonresident (ut is also lia(le to ta) on income accruing a(road i# it is #rom a (usiness controlled in or a $ro#ession set u$ in India. a$ital gains on trans#er o# assets acuired in #oreign e)change is not ta)a(le in certain cases. Non-resident Indians are not reuired to #ile a ta) return i# their income consists o# only interest and di'idends* $ro'ided ta)es due on such income are deducted at source. It is $ossi(le #or non-resident Indians to a'ail o# these s$ecial $ro'isions e'en a#ter (ecoming residents (y #olloing certain $rocedures laid don (y the Income Ta) act.
T##ilit1 of in"ivi"u#ls is su!!#riGe" in the t#le elow
!!
*t#tus
In"i#n Inco!e Foreign Inco!e
=esident and ordinarily resident
Ta)a(le
Ta)a(le
=esident (ut not ordinary resident
Ta)a(le
Not Ta)a(le
Non-=esident
Ta)a(le
Not Ta)a(le
6now how of Inco!e T# •
•
•
•
•
•
Income ta) is le'ied on the ;total income; o# the assessee. Income o# the ;$re'ious year; is ta)ed in the ;assessment year.; Income is classi#ied into and com$uted under #i'e categories called ;heads o# income.; The (asic scheme o# income ta) is the $rinci$le ;$ay as you earn.; "ne must $ay his ta)es in ad'ance and (y the due dates* in the $rescri(ed $ercentages. @e#erment in the $ayment o# ad'ance ta) ould result in the $ayment o# interest.
The income ta) (asic scheme is e)$lained in (rie# asB Income ta) is le'ied on the ;total income; o# the assessa(le entity hich is com$uted under the $ro'isions o# the Act. The income hich are $ertaining to the ;$re'ious year; is ta)ed* (ut in the ;assessment year.; Income ta) is charged at the rates (eing #i)ed (y the #or the year (y the annual >inance Act. ut the lia(ility to $ay the ta) is (ased on the $rinci$le ;$ay as you earn.; •
•
•
Also check Ta)a(le Heads o# Income #or the de#inition o# salary* ages* $ension* alloance* etc.
P#1 #s 1ou E#rn A $erson is not alloed to ait until 2! March to $ay his9her ta)es. The !+
Income Ta) Act has the $ro'ision o# ;$ay as you earn.; This do not $inch a ta) $ayer at the end o# the year making a lum$ sum $ayment. Such $ayments PER*O/AL TA= RATE* For in"ivi"u#ls; .+F; Associ#tion of Persons 'AOP) #n" &o"1 of in"ivi"u#ls '&OI)9
>or the Assessment 5ear +??G-!? T##le inco!e sl# 'Rs()
3$ to !*
R#te 'H)
NIL
!*
!?
2*??*??! J 8*??*???
+?
8*??*??! u$ards
2?K
KA surcharge o# !? $er cent o# the total ta) lia(ility is a$$lica(le here the total income e)ceeds =s !*???*???. Note : •
•
•
4ducation cuss is a$$lica(le 2 $er cent on income ta)* inclusi'e o# surcharge i# there is any. A marginal relie# may (e $ro'ided to ensure that the additional IT $aya(le* including surcharge* on e)cess o# income o'er =s !*???*??? is limited to an amount (y hich the income is more than this mentioned amount. Agricultural income is e)em$t #rom income-ta).
T,* 'T# "e"ucte" #t source) This ta) is deducted at the source o# income* (y the em$loyer or the $ayer and $aid to the go'ernment. It includes salary* interest* commission and contract #ees* rent* $ro#essional #ees* etc. This ty$e o# deduction is $o$ularly !2
knon as T@S. Such ta) is su(%ect to certain limits and certain conditions. >or e)am$le i# the earning u$ on #i)ed de$osit is =s. 8*??? in a (ank* T@S at !? and education cues at + i.e. a total o# !?.+ ill (e deducted at the time o# credit or at the time o# $ayment* hiche'er is earlier. In case o# senior citi:en* i# he9she estimates that the ta) on the income is nil* >orm No.!8H duly #illed and signed is to (e su(mitted in du$licate to the (ank. So* no T@S ill (e deducted. I# the total income is less than the threshold limit* >orm No.!8 is to (e su(mitted to the $ayer to $re'ent T@S #rom such interest. TC* 'T# collecte" #t source) 3nlike ta) deducted at source* TS is collected (y a seller o# certain s$eci#ied goods at the s$eci#ied rates on the $urchase o# the goods and it is remitted to the treasury on (ehal# o# the (uyer. In the same ay* a $erson granting a lease or license in a $arking lot* toll-$la:a* etc. collects the ta)es at the s$eci#ied rates as ta) $aid on (ehal# o# the lessee. A"v#nce T# Ad'ance Ta) is $aid (y the income earner during the $re'ious year. The com$uting o# the lia(ility o# ad'ance ta) is done (y estimating the ;total income; #or the year* calculating the surcharge and taking into consideration the re(ate that ill (e a'aila(le. The ad'ance ta) is reuired to (e $aid in three installments. *che"ule of A"v#nce T#9
A
"n or (e#ore !8 Se$tem(er
Not less than 2? o# ad'ance ta).
"n or (e#ore !8 @ecem(er
Not less than
"n o# (e#ore !8 March
>ull ad'ance ta) as reduced (y the amount or amounts i# any* $aid in earlier installments.
I# the assessee does not $ays the ad'ance ta) as descri(ed a(o'e* an interest o# ! is charged $er month #or 2 months #or the de#erment o# ad'ance ta) installment. I# the total amount o# ad'ance ta) is not $aid on or (e#ore !8 March* an interest o# ! is charged #or one month. !7
>urther* i# the total ad'ance ta) $aid is less than G? o# the ad'ance ta) $aya(le* the interest at ! $er month is charged #or the short#all in the ad'ance ta) $aid #or the $eriod commencing #rom ! A$ril o# the assessment year and ending on the date o# $ayment or assessment* hiche'er is earlier. Inco!e T# R#tes Across the 7orl" Countr1
Person#l Inco!e T# R#te
Australia
? - 7F.8
anada
!< - +G
4stonia
+7 - +7
@enmark
77 - <2
Hong Oong
? - 22
India
? - 22
Israel
!? - 7G
Malaysia
? - +G
Me)ico
2 - 2+
=ussia
!2 - !2
Singa$ore
? - ++
3O
? - 7?
3S
!? -28
TA=A&LE .EA, OF I/CO%E TA=
!8
The total income o# a $erson is di'ided into #i'e heads* 'i:.* ta)a(le. !. +. 2. 7. 8.
Income #rom Salary Income #rom House Pro$erty Income #rom $ro#its and gains o# usiness or Pro#ession Income #rom a$ital ains Income #rom "ther sources
Salary IncomeB In certain cases* an em$loyee can claim (oth H=A /house rent alloances0 as ell as interest on housing loan.
House $ro$erty Income B i# interest $aid #or $ro$erty gi'en on rent is less than ta)a(le rent /a#ter standard deduction -2?0. Such loss can (e set o## against income #rom other heads including income #rom salary.
Income #rom ca$ital gainBsur$lus #rom deri'ati'e contracts is non- s$eculation. Archaeological collection* @raings* Painting* Scul$tures* Any other ork o# Art. Thus* no any sur$lus recei'ed #rom sale o# these articles ould (e lia(le to ta) under the head ca$ital gain.
usiness income BAny ty$e o# income recei'ed #rom (usiness
Income #rom other sourcesB@i'idend* ommission* lotteries* crossord $u::les* races including horse races* card games* any sort or #rom gam(ling or (etting
In"ivi"u#l .e#"s of Inco!e !<
Inco!e fro! *#l#r1
All income recei'ed as salary under 4m$loyer-4m$loyee relationshi$ is ta)ed under this head. 4m$loyers must ithhold ta) com$ulsorily* i# income e)ceeds minimum e)em$tion limit* as Ta) @educted at Source /T@S0* and $ro'ide their em$loyees ith ith a For! ?@ hich shos the ta) deductions and net $aid income. In addition* the >orm !< ill contain any other deductions $ro'ided #rom salary such asB !. Medical Medical reim(urse reim(ursementB mentB 3$ 3$ to =s. !8*?? !8*??? ? $er year year is ta) #ree #ree i# su$$orted (y (ills. /om$any $ays >ringe ene#it Ta) Ta) on this amount0 +. on'eyanc on'eyancee alloanceB alloanceB 3$ to to =s. F?? $er $er month /=s. /=s. G*
Income #rom House $ro$erty is com$uted (y taking hat is called Annual Value. The annual 'alue /in the case o# a let out $ro$erty0 is the ma)imum o# the #olloingB •
•
•
=ent recei'ed Munici$al Valuation >air =ent /as determined (y the I-T de$artment0
I# a house is not let out and not sel#-occu$ied* annual 'alue is assumed to ha'e accrued to the oner. Annual 'alue in case o# a sel# occu$ied house is to (e taken as NIL. /Hoe'er i# there is more than one sel# occu$ied house then the annual 'alue o# the other house9s is ta)a(le.0 >rom this* deduct !
Munici$al Ta) $aid and you get the Net Annual Value. >rom this Net Annual Value* deduct B •
•
2? o# Net 'alue as re$air cost /This is a mandatory deduction0 Interest $aid or $aya(le on a housing loan against this house
In the case o# a sel# occu$ied house interest $aid or $aya(le is su(%ect to a ma)imum limit o# =s*!*8?*??? /i# loan is taken on or a#ter ! A$ril !GGG0 and =s.2?*??? /i# the loan is taken (e#ore ! A$ril A$ril !GGG0. >or all non sel#occu$ied homes* all interest is deducti(le* ith no u$$er limits. The (alance is added to ta)a(le income. Inco!e fro! &usiness or Profession o
carry #orard o# losses
An e)am$le .. An architect orks out o# home and co-ordinates ork #or his clients. All the #olloing e)$enses ould (e deducti(le #rom his $ro#essional #ees. •
•
•
•
•
•
•
he uses a com$uter* he tra'els to sites in his car* he has a $eon to hel$ him collect $ayments He has a maid ho comes in daily $art o# the society maintenance maintenance (ills entertainment e)$enses incurred.. (ooks and maga:ines maga:ines #or his $ro#essional $ractice.
The income re#erred to in section +F* i.e* the incomes chargea(le as Income #rom usiness or Pro#ession shall (e com$uted in accordance ith the $ro'isions contained in sections 2? to 72@. The com$utation o# income under the head Pro#its and ains o# usiness or Pro#ession de$ends on the $articulars and in#ormation a'aila(le. Inco!e fro! C#pit#l 0#ins
Trans#er o# ca$ital assets results in ca$ital gains. A a$ital asset is de#ined under section +/!70 o# the I.T. Act* !G
assessee such as real estate* euity shares* (onds* %eellery* $aintings* art etc. (ut does not include some items like any stock-in-trade #or (usinesses and $ersonal e##ects. Trans#er has (een de#ined under section +/70 to include sale* e)change* relinuishment o# asset* e)tinguishment o# e)tinguishment o# rights in an asset* etc. ertain transactions are not regarded as ;Trans#er; under section 7. >or ta) $ur$oses* there are to ty$es o# ca$ital assetsB Long term and short term. Long term asset are held (y a $erson #or three years e)ce$t in case o# shares or mutual #unds hich (ecomes long term %ust a#ter one year o# holding. Sale o# such long term assets gi'es rise to long term ca$ital gains. There are di##erent scheme o# ta)ation o# long term ca$ital gains. These areB
!. As $er Section Section !?/2F0 !?/2F0 o# Income Ta) Ta) Act* Act* !G
All ca$ital gains that are not long term are short term ca$ital gains* hich are ta)ed as suchB
!G
•
•
3nder section !!!A* #or shares or mutual #unds here STT is $aid* ta) rate is !? >rom Asst 5r +??8-?< as $er >inance Act +??7. >or Asst 5r +??G-!? the ta) rate is !8. In all other cases* it is $art o# gross total income and normal ta) rate is a$$lica(le.
>or com$anies a(road* the ta) lia(ility is +? o# such gains suita(ly inde)ed /since STT is not $aid0. Inco!e fro! Other *ources
This is a residual head* under this head income hich does not meet criteria to go to other heads is ta)ed. Also there are also some s$eci#ic incomes hich are to (e ta)ed under this head. !. +. 2. 7. 8. <. . F. G.
Income (y ay o# @i'idends Income #rom horse races Income #rom inning o# lotteries Income #rom inning (ull races Any amount recei'ed #rom key man insurance $olicy. Any sort or #rom gam(ling or (etting Income #rom commission Income #rom crossord $u::les Income #rom card games
Inco!e Ee!pt fro! T#
+?
Sections !?*!?A* !?AA* !?* !?A* and !2A deal ith income hich does not #orm $art o# an assessee;s total income. Chile section !? $ro'ides a list o# income a(solutely e)em$t #rom ta)* sections !?A* !?AA* !?* !?A* and !2A deal ith s$eci#ic e)em$tions a'aila(le to nely esta(lished industrial undertakings in #ree trade :ones* and $olitical $arties. These e)em$tions are $ro'ided #rom social* $olitical* onstitutional considerations* #or a'oiding dou(le ta)ation* on the (asis o# casual and nonrecurring nature *on the (asis o# non-residents and non-citi:ens status* on the (asis o# ertain s$eci#ic securities* (onds* certi#icates* #unds and the like* on the (asis o# 4ducation* science* research* achie'ements* reards* s$orts* charity* on the (asis o# certain ty$es o# (odies* #unds and institutions* Su(sidies to $romote (usiness* and international* economic* and other considerations. Sikkim is the only state o# India here citi:ens do not $ay income ta). =esidents o# Sikkim are eligi(le #or this e)em$tion (ut e)cluding the non-Sikkimese s$ouse o# a Sikkimese. Agricultural Income RSection !?/!0 4ligi(le Assesses B- All assesses 4)em$t income B- Agricultural income "ther $oints B- Agricultural income means as it is de#ined in Section +/!A0 In case o# indi'idual* H3>* A"P* "I* unregistered #irms and arti#icial %uridical $ersons* agricultural income is to (e aggregated #or the $ur$ose o# determining the rate o# ta) on NonAgricultural income and they ould get ta) re(ate or relie#. ,ivi"en"s
@i'idend income /as re#erred u9s !!8-" o# the I.Ta) Act0 $aid (y om$anies and Mutual >unds are e)em$t #rom ta). A !8 di'idend distri(ution ta) and surcharge o# 2 is $aid (y com$anies (e#ore distri(ution. 4uity mutual #unds /ith more than <8 o# assets in'ested in euities0 do not $ay a di'idend distri(ution ta)* though other #unds do. Liuid and Money Market #unds $ay +8 di'idend distri(ution ta).?!!+2
Other Ee!pt Inco!e
The Indian Income ta) act s$eci#ically e)em$ts certain income #rom ta)B
+!
•
Money recei'ed #rom an Insurance com$any as $roceeds o# an insurance $olicy /(y ay o# an insurance claim* or (y maturity0 is generally e)em$t. Hoe'er there are three ty$es o# $ayments under li#e insurance $olicy that are not ta) #ree . These are B •
•
•
•
any sum recei'ed under su(-section /20 o# section F?@@ or su(section /20 o# section F?@@A - this re#ers to s$eci#ic $olicies #or disa(led de$endantsQ or any sum recei'ed under a Oeyman insurance $olicyQ or any sum recei'ed under $olicies issued on or a#ter ! A$ril +??2 here $remium $aid is greater than !98th the sum assured
Maturity $roceeds o# a Pu(lic Pro'ident >und /PP>0 account.
T# &enefits - ,e"uctions; Re#tes 8 ,on#tions Re#tes
Section F? ++
INS4=T /A5 +??F-?G0 Senior iti:ens Sa'ings Scheme +??7 and the Post "##ice Time @e$osit Account added to the (asket o# sa'ing instruments under Section F? o# the Income Ta) Act.
Section F?L used to allo deduction o# interest earned on* say* a National Sa'ings erti#icate or a (ank de$osit u$ to a limit o# =s !+*???. ut no all these are gone .In their $lace has come Section F? -- u9s F?* & u9s F?@* as the >inance ill $uts it. Thus* the ne Section F? o# the Income Ta) Act $ro$osed in 3nion udget gi'es you a (igger ta) (reak than hat the current regime o##ers. @eduction in res$ect o# Li#e Insurance Premium* ontri(ution to Pro'ident >und* etc. =s ! lakh can (e in'ested under this section ithout any indi'idual su(-limits e)ce$t in the case o# =s !?*??? in $ension #unds. Sections FF* F?L* F? and F?@ is clu((ed in. •
•
•
INS4=T /A5 +??-?F0 It is $ro$osed to insert clause /))i0 in su(-section /+0 o# this section in order to $ro'ide that the in'estment in a term de$osit #or a #i)ed $eriod o# not less than #i'e years ith any scheduled (ank shall (e eligi(le #or a deduction under this section. Schemes eligi(le #or Section F? (ene#its PP> 4LSS - Mutual >unds NS OVP •
•
•
•
•
•
•
Li#e Insurance Senior iti:en Sa'ing Scheme +??7 Post "##ice Time @e$osit Account
•
Note B - Section F? is #or deduction in res$ect o# contri(ution to certain Pension >unds. Section F?L is #or deductions in res$ect to Interest on certain +2
Securities* @i'idends* etc Sections a(olished #rom 3nion udget +??8-?< FF /=e(ate on Li#e Insurance Premium* ontri(ution to Pro'ident >und0 F?L /@eductions in res$ect to Interest on certain Securities* @i'idends* etc.0 Note B=e(ate o# =s 8*??? #or omen and =s +?*??? #or senior citi:ens ha'e (een i$ed o##. •
•
•
The key #eatures o# the ne $ro'ision 4)em$tion a'aila(le to all ta)$ayers irres$ecti'e o# income (racket -earlier Section FF did not $ro'ide (ene#it to those ha'ing income e)ceeding =s 8??*???. No e)em$tion9ad%ustment #or interest income All sa'ing modes9o$tions under Section FF co'ered and also F? and F?@ co'ered. •
•
•
>olloing (ene#its ill continue irres$ecti'e o# changes Interest $aid on housing loan #or sel#-occu$ied house $ro$erty. Medical insurance $remium. /Additional deduction o# =s !8??? u9s F?@ to an indi'idual $aying medical insurance $remium #or his9her $arent/s0 S$eci#ied e)$enditure on disa(led de$endant. 4)$enses #or medical treatment #or sel# or de$endant or mem(er o# an H3>. @eduction in res$ect o# interest on loans #or $ursuing higher studies Section F?4. @eduction to $erson ith disa(ility. •
•
•
•
•
•
Section !?/220 @i'idends #rom mutual #unds are #ully e)em$t #rom income ta) under Section !?/220. 4uity #unds /schemes that in'est 8? $er cent o# their #unds in euity0 are also e)em$t #rom di'idend ta). This means that unlike com$anies* they do not ha'e to $ay ta) at the rate o# !?.+ $er cent on the di'idend that they distri(ute. +7
INS4=T /A5 +??F-?G0 oir oard included in Section !?/+GA0 and e)em$ted #rom income ta). Section FF 3$to 2! March +??8* re(ates ere a'aila(le on the ta) $aya(le under three sections. According to the section* 2? $er cent or +? $er cent or !8 $er cent o# the amount in'ested in certain schemes /schemes re#erred in Section F?0 as a'aila(le as a re(ate on the ta) $aya(le. 2? $er cent o# the amount in'ested as a'aila(le as re(ate only i# the salary income o# the indi'idual as less than =s. ! lakh and i# it constituted G? $er cent or more o# the assessee;s gross total income. +? $er cent o# the amount in'ested as a'aila(le as re(ate i# the gross total income o# the indi'idual as less than =s !.8 lakh and the case did not #all under the a(o'e mentioned case. I# gross total income as more than =s. !.8 lakh (ut less than =s 8 lakh o# the indi'idual* a re(ate o# !8 $er cent o# the amount in'ested as a'aila(le. I# gross total income as more than =s 8 lakh o# the indi'idual* then there is no re(ate. •
•
•
•
Section FF INS4=T /A5 +??F-?G0 A ne su(-section /!!0 in Section F?-I to grant a #i'e year ta) holiday to encourage hos$itals to (e set u$ anyhere in India* e)ce$t certain s$eci#ied ur(an agglomerations* and es$ecially in tier-+ and tier-2 tons in order to ser'e the rural hinterland. This indo ill (e o$en #or the $eriod A$ril !* +??F to March 2!* +?!2* during hich the hos$ital must commence o$erations.
3nder this section* an indi'idual resident in India and a(o'e the age o# <8 years as alloed to a ma)imum re(ate o# =s. +?*??? on the ta) $aya(le. Section FF 3nder this section a lady resident in India* aged (elo <8 years* as alloed a ma)imum re(ate on the ta) $aya(le o# =s 8*???. +8
Section FG /!0 This is a'aila(le to an em$loyee hen he recei'es salary in ad'ance or in arrear or hen in one #inancial year* he recei'es salary o# more than !+ months or recei'es ;$ro#its in lieu o# salary; C.e.#. !.<.FG* relie# u9s FG/!0 can (e granted at the time o# T@S (y em$loyees o# all com$anies co-o$erati'e societies* uni'ersities or institutions as ell as go't.9$u(lic sector undertakings. The relie# should (e claimed (y the em$loyee in >orm No. !?4 and should (e orked out as e)$lained in =ule +!A o# the Income Ta) =ules.
,e"uctions
Section F? Look #or INS4=T #or A5 +??F-?G Any indi'idual ho makes a contri(ution #or any annuity $lan o# the Li#e Insurance or$oration o# India or any other insurer is eligi(le #or a deduction o# the amount $aid or =s. !?*???* hiche'er is less. Chen an indi'idual or his nominee recei'es any amount under the #olloing circumstances it ill (e ta)ed as the income o# the indi'idual or his nominee* in the year o# ithdraal or the year in hich the $ension is recei'edB "n the surrender o# the annuity $lan or •
+<
•
As $ension recei'ed #rom the annuity $lan.
INS4=T /A5 +??-?F0 The limit o# in'estment is $ro$osed to increase #rom =s !?*??? to =s !*??*??? su(%ect to o'erall ca$ o# =s !*??*??? $ro'ided under section F?4.
Section F?@ The deduction #or contri(utions to a $ension scheme o# the entral o'ernment is a'aila(le only to those indi'idual ho ha'e (een em$loyed (y the central go'ernment on or a#ter !st ,anuary +??7* and ill (e alloed #or any amount de$osited in such a $ension scheme. ut* in this case* deduction o# more than !? $er cent o# the em$loyee;s salary shall not (e alloed. The contri(utions to the #und are also made (y the entral o'ernment. @eduction ill (e a'aila(le #or any contri(ution hich is made (y the entral o'ernment or !? $er cent o# the em$loyee;s salary* hiche'er is less. Chen the indi'idual or his nominee recei'es any amount out o# the scheme hich meets the #olloing descri$tions* it shall (e ta)ed in the hands o# the reci$ient. "n closure9 o$ting out o# the $ension schemeQ or As $ension recei'ed #rom the annuity $lan. •
•
The term ;salary; here includes @earness Alloance /i# considered #or retirement (ene#its0* (ut it e)cludes other alloances and $eruisites. The aggregate deduction under the Sections F?* F? and F?@ cannot e)ceed =s ! lakh as hole. Section F?@ INS4=T /A5 +??F-?G0 Additional deduction o# =s !8*??? under Section F?@ is alloed to an indi'idual ho $ays medical insurance $remium #or his9 her $arent or $arents. +
Any Premium hich is $aid #or medical insurance that has (een taken on the health o# the assessee* his s$ouse* de$endent $arents or de$endent children* is alloed as a deduction* su(%ect to a ceiling o# =s !?*???. Chere any $remium is $aid #or medical insurance #or a senior citi:en* an enhanced deduction o# =s !8*??? is alloed. The deduction is a'aila(le only i# the $remium is $aid (y cheue. INS4=T /A5 +??-?F0 3nder section F?@* the deduction has (een increased to =s !8*??? and #or senior citi:en it is no =s +?*???. Section F?@@ @eduction under this section is a'aila(le to an indi'idual hoB Incurs any e)$enditure #or the medical treatment* training and reha(ilitation o# a disa(led de$endantQ or @e$osits any amount in schemes like Li#e Insurance or$oration #or the maintenance o# a disa(led de$endant. An annuity or a lum$ sum amount is $aid to the de$endant or to a nominee #or the (ene#it o# the de$endant in the e'ent o# the death o# the indi'idual de$ositing the money* #rom the said scheme* •
•
A deduction o# =s 8?*??? is a'aila(le. Chere the de$andant is ith a se'ere disa(ility* a deduction o# =s !*??*??? is alloed. /As $er A5 +??G-!?0 I# the death o# the de$endant occurs (e#ore that o# the assessee* the amount in the scheme is returned to the indi'idual and is ta)a(le in his hands in the year that it is recei'ed. An indi'idual should #urnish a co$y o# the issued certi#icate (y the medical (oard constituted either (y the entral go'ernment or a state go'ernment in the $rescri(ed #orm* along ith the return o# income o# the year #or hich the deduction is claimed. The term ;de$endent; here re#ers to the s$ouse* children* $arents and si(lings o# the assessee ho are de$endant on him #or maintenance and ho themsel'es ha'en;t claimed a deduction #or the disa(ility in com$uting their total incomes. +F
This deduction is also a'aila(le to Hindu 3ndi'ided >amilies /H3>0. Section F?@@ An indi'idual* resident in India s$ending any amount #or the medical treatment o# s$eci#ied diseases a##ecting him or his s$ouse* children* $arents* (rothers and sisters and ho are de$endant on him* ill (e eligi(le #or a deduction o# the amount actually s$ent or =s 7?*???* hiche'er is less. NoteB- For the complete list of disease specified, refer to Rule 11DD of the Income Tax Rules. >or any amount s$ent on the treatment o# a de$endent senior citi:en an indi'idual is eligi(le #or a deduction o# the amount s$ent or =s orm !?-I ith the return o# income issued (y a s$ecialist orking in a go'ernment hos$ital. I# any amount o# medical e)$enditure is (orne (y the em$loyer or is reim(ursed under an insurance scheme* the eligi(ility o# the deduction is the reduction to that e)tent. This deduction is also a'aila(le to Hindu 3ndi'ided >amilies /H3>0. Section F?4 INS4=T /A5 +??G-!?0 @eduction under section F?4 o# the Income-ta) Act alloed in res$ect o# interest on loans taken #or $ursuing higher education in s$eci#ied #ields o# study to (e e)tended to co'er all #ields o# study* including 'ocational studies* $ursued a#ter com$letion o# schooling. 3nder this section* deduction is a'aila(le #or $ayment o# interest on a loan taken #or higher education #rom any #inancial institution or an a$$ro'ed charita(le institution. The loan should (e taken #or either $ursuing a #ulltime graduate or $ost-graduate course in engineering* medicine or management* or a $ost-graduate course in a$$lied science or $ure science. The deduction is a'aila(le #or the #irst year hen the interest is $aid and #or the su(seuent se'en years. 3$ to March +??8* deduction as a'aila(le #or +G
the re$ayment o# $rinci$al and interest aggregating to =s 7?*??? a year. Section F?3 It is deduction in the case o# a $erson ith a disa(ility. An indi'idual ho is su##ering #rom a $ermanent disa(ility or mental retardation as s$eci#ied in the $ersons ith disa(ilities /4ual "$$ortunities* Protection o# =ights and >ull Partici$ation0 Act* !GG8 or the National Trust #or Cel#are o# Persons ith Autism* ere(ral Palsy* Mental =etardation and Multi$le @isa(ilities Act* !GGG* shall (e alloed a deduction o# =s 8?*???. In case o# se'ere disa(ility it is =s. 8*???. The assessee should #urnish a certi#icate #rom a medical (oard constituted (y either the entral or the State o'ernment* along ith the return o# income #or the year #or hich the deduction is claimed.
,on#tions
Section F? For the Assessment Year 200910 @onations to electoral trusts to (e alloed as a !?? $ercent deduction in the com$utation o# the income o# the donor. For the Assessment Year 200!0" 3nder this section deduction is made in res$ect o# donations to certain #unds* charita(le institutions* etc. @eduction is not a'aila(le #or donations gi'en in kind. The deduction is a'aila(le only #or the entity to hich donations is made is an a$$ro'ed charita(le institution (y the go'ernment. A recei$t o# the institute* in e'idence made* should (e attached to the return o# income. Section F? 2?
3nder this section a non-salaried $erson or a salaried $erson* i#* not getting house rent alloance* he9she can claim to the deduction #or the rent he $ays #or a residential accommodation. The deduction a'aila(le is least o# the #olloingB =ent $aid in e)cess o# !? $er cent o# total income. +8 $er cent o# total income. =s +*??? $er month. •
•
•
The total income o# the indi'idual is com$uted a#ter reducing the amount deducti(le under other sections* recei$ts e)em$t #rom ta)* and long-term & short-term ca$ital gains ta)a(le at concessional rates. The deduction is not a'aila(le i# the assessee or his s$ouse or minor child ons the accommodation in hich he stays or orks* or carries on his (usiness or $ro#ession. @eduction is e'en not alloned* i# the assessee ons a house in any other $lace* and the concession in res$ect o# sel#-occu$ied house is claimed (y him. Section F?A An indi'idual* ho is not engaged in any (usiness or $ro#ession* is eligi(le #or a deduction o# the amount donated to certain institutions engaged in scienti#ic research* rural de'elo$ment* etc. Section F? It is the deduction in res$ect o# contri(utions gi'en (y any $erson to $olitical $arties. An indi'idual shall (e alloed to a deduction o# any amount contri(uted (y him to a $olitical $arty.
2!
I/CO%E TA= E-FILI/0 E-filing of T# Returns
The $rocess o# electronically #iling Income ta) returns through the internet is knon as e->iling. It is mandatory #or om$anies and >irms reuiring statutory audit u9s 77A to su(mit the Income ta) returns electronically #or A5 +??G-!?. J Any om$any9>irm reuiring statutory audit u9s 77A return su(mitted ithout a e->iling recei$t ill not (e acce$ted. e-#iling is $ossi(le ith or ithout digital signature.
The Income Ta) @e$artment is keen to encourage e#iling o# IT returns (y all ta)$ayers in 'ie o# the #olloing (ene#its to ta)$ayers. •
•
•
•
•
Anyhere-Anytime >iling No long ueues No Personnel Inter#ace Duick Processing Accurate data in return 2+
Paid ta)es* made your ta) sa'ing in'estments... no get geared u$ #or #iling income ta) returns as the month o# ,uly is on the hori:on and the time has come hen one is su$$osed to #ile IT returns. In the year +?? the Income Ta) @e$artment o# India took many initiati'es such as training TRP*; launching saral #orms in a ne a'atar and so on #or making ta) #iling con'enient and handy #or the citi:ens. In this e-age hen IT is success#ully inter'ening in so many #ields and $ro'iding ser'ices #rom online (anking to online nes* online mutual #und in'estments to online (uying and selling* the Income Ta) @e$artment o# India launched the Electronic Filing o# income ta) returns. 5es* using the e-#iling $rocess one can #ile in ta) returns %ust ithin a #e clicks at any time o# the day and that too ithout any hassles. 3sing this technology all you ha'e to do is #ill the #orm and su(mit it* online or o##line.
%ORE A&O+T T.E E-FILI/0 PROCE** 7OR6
The e-#iling $rocess is really easy and takes a 'ery little time and all you ha'e to do is #ill u$ your ta) return #orm online $ro'ided and the other reuired in#ormation a(out income* e)$enditure and sa'ings. >iling ta) returns online is the easiest and the sim$lest method and all one needs is to log on and #ollo the sim$le instructions. >or e- #iling $rocess one needs to ha'e a so#tare a$$lication that generates the income ta) #orm* hich is a'aila(le at the Income Ta) @e$artment e(site. &enefits of e-Filing9
"ne o# the #oremost (ene#its o# electronic #iling is the #acility o# anyhere 9 anytime #iling* and one can %ust #ile returns anytime o# the day or night. "ther than this* online ta) returns are $rocessed much #aster than $a$er returns and the ta) is orked out automatically as the $ayee com$letes the 22
#orm. Cith this the $ayee also gets the acknoledgement sli$ immediately. Also online #iling is a sa#e and secure mode.
TPE* OF E-FILI/0 There are three ays to #ile returns electronically. •
27
•
•
•
"$tion !B 3se digital signature* in hich case no #urther action is reuired. "$tion +B >ile ithout digital signature* in hich case ITR-V #orm is to (e #iled ith the de$artment. This is a single $age recei$t cum 'eri#ication #orm. "$tion 2B >ile through an e-return intermediary ho ould do e>iling and also assist the Assessee #ile the ITR -V >orm.
28
2<
,ocu!ents re$uire" for e-filing
For! /o( ?@ 'for T# "e"ucte" 1 e!plo1ers)
For! /o( ?@A
Account st#te!ents of #n< #ccounts
Propert1 "et#ils
*#le #n" purch#se of invest!ents #ssets
,et#ils of t# p#1!ents !#"e
PA/ c#r" photo cop1
&irth "#te
TA/ nu!er
&#n< Ac no
&#n< "et#ils %ICR co"e; T1pe of Ac(
2
PROCE** OF E-FILI/0
2F
?5 *tep Process for Filing T# Returns Chether you ish to go in #or the uick e-#iling $rocess or manually #ile your income ta) returns* here is a hel$#ul guide to assist you in com$leting and su(mitting this 'ital document (y yoursel#. ?) 0o to the wesite http9www(inco!et#in"i#(gov(in
5) Clic< the lin< eFile Inco!e T# Return #t the top left corner of the ho!e p#ge ) *elect the Correct For! - There are to income ta) #orms #or salaried indi'iduals. IT=-! is #or those ho deri'e their income #rom salary* $ension or interest hile IT=-+ is #or income #rom ca$ital gains* house $ro$erty and other sources. Those ho ish to su(mit their ta) returns manually may donload the $d# #orms - 4)ternal e(site that o$ens in a ne indo #rom 2G
here. These #orms need to (e $rinted* #illed (y hand and signed (e#ore su(mitting to your local income ta) o##ice.
>or Indi'iduals* H3> /Hindu 3ndi'ided >amilies0 Select a$$ro$riate Income Ta) =eturn /IT=0 Pre$aration So#tare
IT=-! Indi'idual
IT=-+
IT=-2
Indi'idual
Indi'idual
& H3>
& H3>
!
Income #rom Salary9Pension
+
Income #rom "ther Sources /only Interest income or >amily Pension0
2
Income9Loss #rom "ther Sources
7
Income9Loss #rom House Pro$erty
8
a$ital ains9Loss on sale o# in'estments9$ro$erty
<
Partner in a $artnershi$ >irm
Income #rom Pro$rietary usiness9Pro#ession
*elect #ppropri#te t1pe of Return For! ITR ? to ITR D
7?
>or Association o# Persons /AoP0* ody o# Indi'iduals /oI0* Local Authority* om$anies* Trusts* >ringe ene#it Ta) />T0 =eturn Select a$$ro$riate Income Ta) =eturn /IT=0 Pre$aration So#tare
IT=-<
IT=-
IT=-F
om$anies
Trusts
"nly >T
a$ital ains9Loss on sale o# in'estments9$ro$erty
7
Income9Loss #rom usiness
8
>ringe ene#it Ta)
!
Income9Loss #rom "ther Sources
+
Income9Loss #rom House Pro$erty
2
IT=-8 >irms* AoP* oI* LA
IT=- ill not (e a'aila(le #or e->iling
7.O CA/ +*E 7.IC. FOR% ITR-?
This >orm can (e used (y an indi'idual hose total income during the $re'ious year i.e.* #inancial year +??F-?G includes income chargea(le to 7!
income-ta) under the head 6salariesU or income in the nature o# #amily $ension as de#ined in the 4)$lanation to clause /iia0 o# section 8 (ut does not include any other income e)ce$t income (y ay o# interest chargea(le to income-ta) under the head 6income #rom other sourcesU. There should not (e any e)em$t income other than agriculture income and interest income. It may $lease (e noted that a $erson ho is entitled to use this #orm shall not use >orm IT=-+. >urther* a $erson in hose income the income o# other $erson like his9 her s$ouse* minor child* etc. is to (e clu((ed is also not entitled to use this #orm.
ITR-5
This >orm can (e used (y an indi'idual or a Hindu 3ndi'ided #amily hose total income does not include any income chargea(le to income-ta) under he head 6Pro#its or gains o# (usiness or $ro#essionU. It may $lease (e noted that a $erson ho is entitled to use >orm IT=-! shall not use this #orm. >urther* a $erson ho is $artner in a #irm is reuired to use >orm IT=-2. In case a $artner in the #irm does not ha'e any income #rom the #irm (y ay o# interest* salary* etc. and has only e)em$t income (y ay o# share in the $ro#it o# the #irm shall not use >orm IT=-+.
ITR-
This >orm can (e used a $erson (eing an indi'idual or a Hindu 3ndi'ided #amily ho is a $artner in a #irm and here income chargea(le to incometa) under the head 6Pro#its or gains o# (usiness or $ro#essionU does not include any income e)ce$t the income (y ay o# any interest* salary* (onus* commission or remuneration* (y hate'er name called* due to* or recei'ed (y him #rom such #irm. In case a $artner in the #irm does not ha'e any income #rom the #irm (y ay o# interest* salary* etc. and has only e)em$t income (y ay o# share in the $ro#it o# the #irm shall use this #orm only and not >orm IT=-+. ITR-2 This >orm can (e used (y a $erson (eing an indi'idual or a Hindu 3ndi'ided #amily ho is carrying out a $ro$rietary (usiness or $ro#ession.
7+
ITR-B
This >orm can (e used a $erson (eing a #irm* A"P* "I* arti#icial %uridical $erson re#erred to in section +/2!0/'ii0* coo$erati'e society and local authority. Hoe'er* a $erson ho is reuired to #ile the return o# income under section !2G/70/a0 or !2G/70/a0 or !2G/70/(0 or !2G/70/c0 or !2G/70/d0 shall not use this #orm.
ITR-@
This >orm can (e used (y a com$any* other than a com$any claiming e)em$tion under section !!
ITR-4
This >orm can (e used (y $ersons including com$anies ho are reuired to #urnish return under section !2G/7A0 or under section !2G/70 or under section !2G/70 or under section !2G/7@0.
ITR-D
This >orm is a$$lica(le in case o# a $erson ho is not reuired to #urnish the return o# income (ut is reuired to #urnish the return o# #ringe (ene#its
2) +se of Return Prep#r#tion *oftw#re - Those citi:ens ho ish to a'ail the e-#iling system need to donload the =eturn Pre$aration So#tare 4)ternal e(site that o$ens in a ne indo #or each IT= #orm. This 72
so#tare is an e)cel #ile that reuires one to ty$e in $ersonal details as ell as #inancial in#ormation #rom T@S certi#icates* (ank statements* deductions made and interest statements. B) 0ener#ting #n =%L file - A#ter keying in the details* check once #or accuracy. A#ter you are satis#ied* click the ;enerate; (utton to create your ta) return in ML #ormat. This #ormat hel$s in sharing o# structured data across di##erent in#ormation systems. Sa'e this ML #ile on your com$uter. @) Register - The ne)t ste$ reuires you to =egister at the Income Ta) e(site - 4)ternal e(site that o$ens in a ne indo . 5our registered Permanent Account Num(er /PAN card0 has to (e entered as your username. 4) Login - A#ter registering* enter your user id and $assord to login. lick on the rele'ant #orm on the le#t $anel and select ;Su(mit =eturn;.
D) +plo#" =%L - rose to select the ML #ile* hich you had generated and sa'ed in Ste$ 2. lick on the ;3$load; (utton to u$load the #ile.
) Ac
orm ill (e dis$layed. Take a $rintout o# this acknoledgement #or your records.
77
?3) ,igit#l *ign#ture - I# your income ta) return as digitally signed* then no #urther $a$erork or 'isit to the income ta) o##ice is needed. Here is some in#ormation a(out ho to get a digital signature - 4)ternal e(site that o$ens in a ne indo .
Instructions for filling up FOR% ITR-V !. =ule !+/20/iii0 o# the Income-ta) =ules* !G<+ $ro'ides that any assessee can #ile a return o# income electronically ithout the use o# a digital signature. In such cases only an acknoledgement needs to (e #iled ith the @e$artment $hysically (y the assessee. +. "nce a return o# income is #iled electronically on success#ul transmission o# the data* >orm IT=-V duly #illed shall (e generated (y the Income-ta) @e$artmentWs ser'er to the assessee. This IT=-V ill also contain the acknoledgement num(er o# electronic transmission and the date o# the transmission as an e'idence o# #iling #or the (ene#it o# the assessee. Please 78
don load a co$y o# such duly #illed >orm and 'eri#y under your signature in the s$ace $ro'ided. In case the return as $re$ared (y a Ta) =eturn Pre$arer /T=P0* the $articulars o# T=P (e also #illed and this 'eri#ication #orm (e countersigned (y the T=P. 2. This acknoledgement in >orm IT=-V duly signed (y the assessee needs to (e #iled $hysically /in du$licate0 ith the concerned Assessing "##icer. "ne co$y o# this acknoledgement ould (e returned (ack to the assessee #or his record. 7. The codes #or the #orm num(er and the status o# the assessee shall (e generated electronically (y the @e$artmentWs ser'er. ??) Verific#tion - I# your return is not digitally signed* then you need to $rint and #ill u$ the 'eri#ication $art o# the acknoledgement cum 'eri#ication #orm /IT=-V0. This has to (e signed and su(mitted to the local Income Ta) "##ice ithin !8 days to com$lete the e-#iling $rocess.
?5) A""ition#l Assist#nce - In case you reuire any more hel$ in #iling the $a$er co$y o# the return* $lease contact the Pu(lic =elations "##icer at your local Income Ta) "##ice. "ne may also $hone the Aayakar Sam$ark Oendra /ASO0 call centre at ?52-52D333 or email at askincometa)india.go'.in.
7<
! + 2 7 8 < F G !?
Fre$uentl1 As
Ho is interest calculated #or late or non-#urnishing o# return E I# the ta) $ayer #ails to $ay G? ta) $lus a$$lica(le interest/s0* then ho is interest #or short $ayment o# such ad'ance-ta) calculatedE
!! Ho is interest #or de#erment o# ad'ance-ta) calculatedE !+ Chat are the im$ortant $oints to remem(er hile #iling the income ta) returnE !2
Chy is #ather;s name e'en in the case o# married lady accesses to (e gi'en in the 'eri#ication $ortion o# the returnE
!7 Cho can 'eri#y and sign the income-ta) returnE !8 I# the return is not signed (y the $ro$er $erson or i# it is unsigned* hat is the legal im$licationE !< Chere to #ile the income ta) returnE ! Chere to deli'er the income-ta) returnE 7ho is li#le to file the inco!e-t# returnK
Chen the total income #rom all sources o# income o# any $erson e)ceeds the ma)imum amount hich is not chargea(le to income-ta) in any $re'ious year ending on 2!st March then that $erson is lia(le to #ile the Income Ta) =eturn. Section !2G/!0 o# the Income-ta) Act has (een amended .e.#. A5 G-GF ith a 'ie to (ring larger num(er o# $ersons in the ta) net. In order to increase the ta)-(ase no any $erson ho satis#ies any one o# the si) conditions 'i:. is oner o# a 'ehicle* or* occu$ies s$eci#ied #loor area o# an 7
immo'a(le $ro$erty or incurs e)$enditure #or himsel# or any other $erson on #oreign-tra'el or su(scri(es to a tele$hone or redit ard or is a lu( mem(er* then he is reuired to #ile a return. >or an indi'idual the ma)imum limit o# income hich is not chargea(le to ta)* #or Assessment 5ears +??!-?+ and +??+-+??2 is =s. 8?*??? res$ecti'ely. esides such $ersons* any other $erson ho is to claim a re#und* or carry #orard losses /#or e)am$le loss under the head ;Income #rom $ro$erty;0 or ho seeks any other (ene#it /#or e)am$le* a deduction income o# a (lind indi'idual0 may also file the IncomeTax Return. It is im$ortant to note that #rom the Assessment 5ear !GG2-G7 onards* the return o# income has to (e com$ulsorily #iled i# the income o# an indi'idual e)ceeds the (asic e)em$tion limit.
7h#t is the #ssess!ent 1e#rK
Assessment year is the $eriod o# !+ months succeeding the rele'ant $re'ious year /i.e. the accounting year0 ending on 2! st march. #or e)am$le* a. y. +??+-+??2 is #or the $eriod o# tel'e months starting #rom !-7-+??! and ending ith 2!-2-+??+.
7h#t #re the "ue "#tes for filing of inco!e t# returns where pri!#r1 source of inco!e 8 s#l#r1MK
In the case o# an assesses earning income #rom Salary $rimarily* the due date #or #iling the Income Ta) return is 2?th ,une o# the assessment year. >or e)am$le* the due date #or A.5. +??+-+??2 ould (e 2? th ,une +??+.
7hich is the prescrie" for! for filing of Inco!e T# returns for #ssesses h#ving Inco!e fro! s#l#r1K
The assesses en%oying salary income* and hose total income does not include income under the head ;Pro#its and ains o# usiness or Pro#essional has to #ile his income-ta) =eturn in For! /o( ( He can also #ile the =eturn 7F
in For! /o( 5A i# his net ta)a(le income is =s.+.? lakhs or less and i# #olloing conditions are satis#ied Ba0 There is no income #rom (usiness or $ro#essionQ (0 There is no (rought #orard or carried #orard loss9alloance under any head o# income e)ce$t #rom house $ro$erty. Accesses #ul#illing the a(o'e conditions* ha'e the o$tion * o# using e'en the e)isting For! /o( in $lace o# For! /o( 5A( They can also #ile their returns in N*#l#r1N#orm. 8
7h#t #re v#rious he#"s of inco!eK
the 'arious heads o# income areB a0 SalariesQ (0 Income #rom House Pro$ertyQ c0 Pro#its & ains o# usiness or Pro#essionQ d0 a$ital ains* and e0 Income #rom other sources. Chile com$uting income #rom the a(o'e mentioned di##erent heads* the $rocedure isB>irst* the ta)a(le income #rom each source is to (e com$uted under each head o# income (y alloing deductions* and then they are aggregated. >or e)am$le* in the case o# an assesses deri'ing income #rom salary* house $ro$erty* and Interest income #rom >i)ed @e$osit in a ank* #irstly* the ta)a(le income under the head ;salaries;* then ;Income #rom House Pro$erty* and lastly the ta)a(le income under the head ;Income #rom other sources; #or ank interest etc. ill (e com$uted. Therea#ter* all the three incomes under the three heads ould (e aggregated.
7G
>rom this amount* certain eligi(le deductions ould then (e deducted to arri'e at the net ta)a(le income on hich ta) is chargea(le.
.ow to p#1 the T# un"er the Inco!e T# ActK
The em$loyer or his re$resentati'e making $ayment to an assesses earning income #rom ;salary; is under o(ligation to deduct* certain amount o# ;ta)* #rom such $ayment/s0 made during the #inancial year. Such deduction #rom the $ayment is called #Tax Deducted at $ource# i.e. T@S. The $erson making this T@S is o(liged to $ay such ta) to entral o'ernment ithin the $rescri(ed time limits. This $ayment o# T@S to the entral o'ernment is treated as $ayment o# ta) on (ehal# o# the assesses. The assesses may #urnish to his em$loyer $articulars o# his income under any head other than salary* and o# any ta) deducted at source thereon in the $rescri(ed >orm No. !+. The em$loyer shall take such other income and ta)* i# any* deducted at source #rom such income* into account #or the $ur$ose o# com$uting the T@S #rom his salary income. Hoe'er* this aggregation is not permitted in case such income under any other head /e)ce$t loss #rom house-$ro$erty0 is a loss. This loss /e)ce$t loss #rom house-$ro$erty0 is not $ermissi(le to (e ad%usted (y the $erson $aying salary (ut can (e claimed as deduction at the time o# #iling o# return and a re#und sought. In order to remo'e any di##iculty in o(taining such re#und* the assesses may make an a$$lication in >orm No. !2 to his Assessing "##icer* and* i# the Assessing "##icer is satis#ied that the total income o# the ta) $ayer %usti#ies a loer rate o# deduction or no deduction at all he may then issue an appropriate certificate to that e##ect hich should (e taken into account (y the $erson making the $ayment o# salary hile deducting ta) at Source. In case the assessesdoes not %ish to #urnish $articulars o# his income under other heads to his em$loyer then he has to estimate his total ta)a(le income under the di##erent heads o# income during the $re'ious year* and pa& tax thereon during the #inancial year itsel#* /a#ter e)cluding the ta) deducti(le at
8?
source0* (y the due dates s$eci#ied under the Income-ta) Act. These $ayments are called Ad'ance Ta) Payments. The due dates and the $ercentage o# installment o# Ad'ance Ta) #or indi'iduals are mentioned herein (elo B,ue "#te of Inst#ll!ents
A!ount P#1#le
!st
on or (e#ore
!8th
Se$tem(er.
Amount not less than 2? o# such ad'ance ta)
+nd
on or (e#ore
!8th
@ecem(er.
Amount not less than
2rd
on or (e#ore
!8th
March.
4ntire (alance amount o# such ad'ance ta).
Hoe'er* the lia(ility #or $ayment o# ad'ance ta) arises only here the amount o# such ta) $aya(le (y the assesses during that year is =s.8*??? or more. Also* any amount $aid (y ay o# Ad'ance Ta) on or (e#ore the 2!st March o# that year* is treated as Ad'ance Ta) Paid during that >inancial 5ear. A#ter the return is $re$ared* and the net ta)a(le income #inally determined* it may so ha$$en that* a#ter taking into account the amount o# T@S and Ad'ance Ta)* i# any* already deducted9$aid still some ta) or interest /$aya(le #or delay in #urnishing the return or delay in $ayment o# ad'ance ta)0 remains to (e $aid. This amount should (e $aid as #selfassessment tax 1# (e#ore #urnishing the r eturn. It is* there#ore* im$ortant to note that (e#ore #urnishing the return* the assessee has to $ay the entire .tax and interest* i# $aya(le* and the $roo# o# such $ayment o# ta)es has to (e attached ith the return. It is also to (e noted that ;ta); includes a$$lica(le Interest; chargea(le under 'arious $ro'isions o# the LTV* Act* !G
8!
7h#t #re the r#tes of inco!e t#K
In the case o# an indi'idual* the rates o# Income ta) #or A.5. +??!-+??+ and A.5. +??+-+??2 are gi'en herein (elo !. Persons in this sla( ould (e reuired to $ay tel'e $ercent surcharge on the total income-ta) $aya(le a#ter re(ate under ha$ter VIII-A. +. Persons in this sla( ould (e reuired to $ay to $ercent surcharge on the total income-ta) $aya(le a#ter re(ate under ha$ter VIII-A. 2. Persons in this sla( ould (e reuired to $ay se'enteen $ercent surcharge on the total income-ta) $aya(le a#ter re(ate under ha$ter VIII-A. 7. Persons in this sla( ould (e reuired to $ay to $ercent surcharge on the total income-ta) $aya(le a#ter re(ate under ha$ter VIII-A. No surcharge ould (e $aya(le (y $ersons ha'ing incomes o# =s.und etc.0. Thereafter, 3nion surcharge ill (e calculated and charged.
.ow is the pen#l interest c#lcul#te"K
8+
Chere the assessee has de#aulted in timely #urnishing o# his return o# income or here he has to $ay ad'ance ta)* then $enal interest is chargea(le #or Non9Late #iling o# return or Non-$ayment9short $ayment9de#erment in $ayment o# such ad'ance ta).
.ow is interest c#lcul#te" for l#te or non-furnishing of returnK
INT4=4ST 39F. +27-A >"= LAT4 "= N"N->3=NISHIN "> IN"M4 TA =4T3=N >or de#aults in #urnishing ;=eturn o# income;B Sim$le interest !.+8 #or e'ery month or $art o# a month #rom the due date o# #iling o# the return to the date o# #urnishing o# the return. The interest is calculated on the amount o# the ta) on the total assessed income as determined under su(section /!0 o# section !72 or on regular assessment u9s !72/20 as reduced (y the Ad'ance Ta)* i# any* $aid and any ta) deducted or collected at source.
If the t# p#1er f#ils to p#1 3H t# plus #pplic#le interest's); then how is interest for short p#1!ent of suuch #"v#nce-t# c#lcul#te"K
INT4=4ST 39S. +27- >"= SH"=T PA5M4NT "> A@VAN4 TA Short#all in $ayment o# Ad'ance ta) o# more than !?
Sim$le interest !.+8 #or month or $art there o# is chargea(le . e. #. !st A$ril o# the Assessment 5ear to the date o# determination o# income u9s. !72/!0 or regular assessment u9s !72/20 on the assessed ta). Assessed ta) means the ta) on the total income determined under su(section /!0 o# section !72 or on regular assessment u9s !72/20* a reduced (y the amount o# ta) deducted or collected at source.
82
.ow is interest for "efer!ent of #"v#nce-t# c#lcul#te" K
INT4=4ST 39F. +27- >"= @4>4=M4NT "> A@VAN4 TA !. I# no ad'ance ta) is $aid or the ad'ance ta) $aid in ! st instalment on or (e#ore !8 th Se$tem(er is less than 2? o# the ta) $aya(le on threturned income as reduced (y ta)es deducted at source
Sim$le interest !.+8$*m. is chargea(le on the amount o# short#all #or a $eriod o# 2 months
+. I# no ad'ance ta) is $aid or i# Sim$le interest !.+8 $.m. is the ad'ance ta) $aid in +nd chargea(le on The amount o# instalment on or (e#ore !8th short#all >or a $eriod o# 2 months @ecem(er is less than
Sim$le interest !.+8 on the amount o# the short #all #rom The ta) due on the returned income.
Hoe'er* no interest is le'ia(le i# the short-#all in $ayment o# ad'ance-ta) is on account of under estimation o# the amount o# ca$ital gains or any income #rom innings #rom lotteries* crossord $u::les* races* and other games including an entertainment $rogram on tele'ision or electronic mode* in hich $eole com$ete to in $ri:es etc.* and the assesses has $aid the tax on
87
such income as $art o# the remaining instalment o# ad'ance ta) hich are due or i# no instalment is due* (y 2!st March* o# the >inancial 5ear.
7h#t #re the i!port#nt points to re!e!er while filing the inco!e t# returnK
Income Ta) =eturn is a legal document and it should (e #illed in (y the assessee ith due care and caution. There should (e no corrections or o'erriting and it should (e $ro$erly signed and 'eri#ied (y the $erson ho is authorised to do so under the $ro'isions o# I.T. Act* The #olloing im$ortant $oints may (e taken care o# hile #illing u$ the Income Ta) =eturnBa0 Name & Address BThe name and address must (e ritten in (lock letters and hile #illing u$ the same in the cages meant #or the same* one cage may (e le#t (lank a#ter each ord. As the Income-ta) =eturns are to (e generally #iled on the (asis o# territorial %urisdiction* any mistake in the address may dislocate the return hich ill cause undue delay in #inalisation o# the assessment. (0 Assessment 5earB The Assessment 5ear is to (e correctly #illed in as the >inancial 5ear succeeding the year #or hich the income is accounted. c0 =e'ised =eturn B Pro$er $articulars o# the original return are to (e mentioned in case the I.T. return is a re'ised return. d0 P.A.N9I= Num(er B The assessee;s PAN9I= Num(er should (e correctly #illed so that the return reaches the concerned Assessing "##icer. e0 Status B 88
orrect code num(ers o# the assessee;s status i.e. indi'idual* H.3.>.* >irm* om$any* .".I.* A.".P. etc. and residential status i.e. =esident in ) India or Not "rdinarily =esident in India / com$lete details o# stay in India ought to (e attached0 must (e #illed in as $er the Notes attached to the Income Tax =eturn. #0 4'idence/s0 #or Pre-$aid Ta)es B The original [email protected]. certi#icates and challans #or $ayments o# ad'ance tax and sel# assessment tax should (e attached to the I.T. return and $ro$er details are to (e #urnished under the head Statement o# Ta)es. These documents may (e listed under the headB List o# @ocuments9Statements attached. g0 @ocument/s09Anne)ure/s0 Attached B The other document/s09Anne)ure/s0 may (e $ro$erly listed under the head List o# @ocument/s09Statement/s0 attached and the total num(er o# documents must (e $ro$erly #illed in the rele'ant column o# the Acknoledgement >orm. h0 Income laimed 4)em$t B The $articulars o# income hich is not included under any head o# income and claimed as e)em$t #rom ta) must (e mentioned in the rele'ant $art o# the I.T. =eturn under the head ;Income laimed 4)em$t;* i0 Veri#ication B The 'eri#ication must (e signed (y the authorised $erson and other $articulars 'i:. Name* >ather;s Name /not hus(and#s name), Assessment 5ear* a$acity* Place and @ate should (e correctly #illed therein. Please note that any $erson making a #alse statement is lia(le to (e $rosecuted under Section + o# the Income-Ta) Act.
7h1 is F#therNs n#!e even in the c#se of !#rrie" l#"1 #ssessees to e given in the verific#tion portion of the returnK
This is reuired #or $ro$er identi#ication* as in the PAN >orms* the reuirement is to #ill u$ the #ather;s name* to ensure a PAN #or li#e. 8<
7ho c#n verif1 #n" sign the inco!e-t# returnK
The indi'idual #iling his Income Ta) return has to sign the return. In case the indi'idual is mentally inca$a(le* then the return may (e signed (y his uardian or (y any other $erson com$etent to sign on his (ehal#. In case the indi'idual is a(sent #rom India or (ecause o# any other reason he is not a(le to sign and 'eri#y his return o# income* then any $erson duly em$oered (y him through 'alid Poer o# Attorney may sign on his (ehal#. In such case* a certi#ied co$y o# the Poer o# Attorney must accom$any the return.
If the return is not signe" 1 the proper person or if it is unsigne"; wh#t is the leg#l i!plic#tionK
It is then an in'alid return.
7here to file the inco!e t# returnK
An existin* assessee must #ile his Income Ta) return ith the Assessing "##icer ho had pre'iousl& assessed him or ith the Assessing "##icer here his case stands trans#erred. Normally* there are se$arate ards #or the assessees earning income #rom salary. These ards9circles* ha'e (een assigned se$arate %urisdiction #or se$arate classes o# assessees* like assessees deri'ing salary income #rom o'ernment or #rom- $ri'ate em$loyers. Similarly* the assessees deri'ing Income less than =s.!? lacs may (e assessed in a ;Card; hereas the assessees deri'ing income a(o'e =s.!? lacs may (e assessed in a ;ircle ! .
8
A ne assessee should #ile his Income-ta) =eturn ith the Assessing "##icer ha'ing territorial %urisdiction o'er the area here he resides* or the Assessing "##icer ha'ing s$ecial %urisdiction o'er the s$eci#ic assessee or class o# assessees or class o# income. In case o# any dou(t* the I.T.". /Pu(lic =elations0 or the I.T.". /Headuarters0 may (e contacted to kno the %urisdiction #or #iling the Income-Ta) =eturn.
7here to "eliver the Inco!e-T# returnK
The Income-Ta) =eturn may (e deli'ered either at the @ak =ecei$t ounter in the =ange9Card9ircle ha'ing %urisdiction o'er the assessee or the return may (e sent through registered $ost. Chen the return is deli'ered at the @ak ounter* the o##icial manning the counter returns one co$y o# the acknoledgement #orm attached ith the return a#ter signing* stam$ing* and num(ering it. The date o# #iling the return is also $rominently dis$layed on the acknoledgement handed o'er to the assessee.
8F
*+%%AR A/, CO/CL+*IO/ *+%%AR OF LEAR/I/0* E=PERIE/CE To get initial success in this #ield is 'ery di##icult. Although the (usiness generation (ecomes easier ith time as e ser'e more $eo$le ho then get added u$ in the loyal clientage. Thus time and ser'ice are to most #actors to get in this #ield. Also the cor$orate remains a 'ery im$ortant segment hich gets (usiness in (ulk (ut retail cannot (e ignored hich makes your (usiness ticking. ustomer remains in the $i'otal $osition.
CO/CL+*IO/9 3nder the um(rella o# my $ro%ect* e the $artici$ants o# this $ro%ect ere glad to understand the design and $attern o# income ta) e-#iling online. My e)$erience ith the 'arious customers o# the 'arious com$anies as totally di##erent and ga'e us an edge adding to my knoledge.
8G
