How Salaried Employee (Taxpayee) Calculate Income Tax ?

All salaried Employee (Taxpayee) should submit income Tax Return Annual but deduct Tax as TDS every Month from his monthly salary u/s. 192 of Income Tax Act, 1961.

There are three major factor to calculate Income Tax for Salaried Employee which are as under :

Method of Tax Calculation:

Every person who is responsible for paying any income chargeable under the head "Salaries" shall deduct income-tax on the estimated income of the assessee under the head "Salaries" for the financial year 2016-17. The income-tax is required to be calculated on the basis of the rates given above, subject to the provisions related to requirement to furnish PAN as per sec. 206AA of the Act, and shall be deducted at the time of each payment. No tax, however, will be required to be deducted at source in any case unless the estimated salary income including the value of perquisites, for the financial year exceeds Rs. 2,50,000/- or Rs.3,00,000/- or Rs. 5,00,000/-, as the case may be, depending upon the age of the employee.

Payment of Tax on Perquisites by Employer:

An option has been given to the employer to pay the tax on non-monetary perquisites given to an employee. The employer may, at its option, make payment of the tax on such perquisites himself without making any TDS from the salary of the employee.  However, the employer will have to pay the tax at the time when such tax was otherwise deductible i.e. at the time of payment of income chargeable under the head “salaries” to the employee.

Computation of Average Income Tax:

For the purpose of making the payment of tax mentioned in Payment of Tax on Perquisites by Employer above, tax is to be determined at the average of income tax computed on the basis of rate in force for the financial year, on the income chargeable under the head "salaries", including the value of perquisites for which tax has been paid by the employer himself.

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Filing of Revised Income Tax Returns by the Tax Payers Post De-Monetisation of Currency

Government of India

Ministry of Finance

Department of Revenue

Central Board of Direct Taxes

New Delhi, 14 December, 2016.

PRESS RELEASE

Sub: Filing of Revised Income Tax Returns by the Tax Payers Post De-Monetisation of Currency

Under the existing provisions of section 139(5) of the Income-tax Act, 1961 (‘Act’), Revised Return can only be filed if any person, who has filed a return under section 139(1) of the Act or in response to notice u/s 142(1), discovers any omission or any wrong statement therein. Post demonetization of the currency on 8th November, 2016, some taxpayers may misuse this provision to revise the return-ofincome filed by them for the earlier assessment year, for manipulating the figures of income, cash-in-hand, profits etc. with an intention to show the current year’s undisclosed income (including the unaccounted income held in the form of demonetized currency in current year) in the earlier return.

It is hereby clarified that the provision to file a revised return of income u/s 139(5) of the Act has been stipulated for revising any omission or wrong statement made in the original return of income and not for resorting to make changes in the income initially declared so as to drastically alter the form, substance and quantum of the earlier disclosed income.

It is brought to the notice of tax payers that any instance coming to the notice of Income-tax Department which reflects manipulation in the amount of income, cash-in-hand, profits etc. and fudging of accounts may necessitate scrutiny of such cases so as to ascertain the correct income of the year and may also attract penalty/prosecution in appropriate cases as per provision of law.

(Meenakshi J.Goswami)

Commissioner of Income Tax

(Media and Technical Policy)

Official Spokesperson, CBDT.

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Complete procedure of online bulk income tax return filing.

The online bulk e-return of Income Tax filing process is very simple even also Bulk PAN validation, Bulk PAN application, Bulk TDS return, Bulk ITR V Request, Bulk PAN/TAN Request, Bulk Digital Signature etc. also by using e-Return Intermediary (ERI) User Registration.  The filing of ITR forms with the relevant Income Tax Authorities. We can e-file the tax returns on request as well.

The ERI Registration Number is available only for Companies and Firms but it is non-mandatory. If the registering ERI Admin belongs to company/firm category, Date of Incorporation is mandatory.

e-Return Intermediary (ERI) User Features :

Pre-requisites:

• ERI Admin should be registered in e-Filing application.
• ERI Sub-user must be created and activated by ERI Admin.

To read more details for Online Bulk Income Tax Return Filing Click Here.

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CBDT releases Income Tax Return Statistics for Asstt. Years 2013-14 & 2014-15

Central Board of Direct Taxes (CBDT) had proactively released in April, 2016 time-series data relating to direct tax collections, number of taxpayers, cost of collection, etc., data of number of PAN allotted and data relating to distribution of income and tax payable in the returns for AY 2012-13.

In continuation of the efforts to place more and more information in public domain, CBDT has further released data relating to distribution of income and tax payable in respect of returns filed for Assessment Years 2013-14 and 2014-15. With this release, detailed income-tax data for three recent assessment years have become available in public domain enabling researchers, scholars, policy makers, students and all other stakeholders to make a better analysis of the trends in incomes and tax payments.

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How to file your Income Tax Return for Asstt. Year 2015-16 ? and Advantages & Disadvantages of Income Tax Return Filing.

Income Tax Return Filing is not mandatory whose income below Rs. 250000/-.  Apart from this if you have pan card must file income Tax Return before due date, evenif your Taxable Income is less than Rs. 250000/-.  

Heads of Income :

Salaries & Perquisites :  Salary and allowance (House Rental Allowance, Hardship allowance) and benefits (such as Rent free accommodation, car, stock options etc.) provided by employer either free or at a concessional rate.

Income from House Property : Rental income from House Property.

Profits & Gains of business or profession : Business Income

.

Capital Gains : Profit/loss on sale of shares, mutual funds, Property etc.

Income from other sources : Interest on fixed deposit, dividend, Gifts etc. 

Allowable Deductions :

• Professional Tax levied State govt. from salary is deducted,
• Transport allowance is deducted from salary upto Rs. 800/- per month,
• Children education allowance is deducted from salary upto Rs.100/- per month per child,
• Insurance Premium u/s 80C up to 1 lac,
• Payment of medical insurance premium. Deduction is available upto Rs.15,000/ for self/ family and also up to Rs. 15,000/- for insurance in respect of parent/ parents of the assesse,
• Donation to certain funds, charitable institutions u/s 80G,
• Deduction of up to Rs.10,000/- for interest on savings bank account or post office savings account,
• Rebate of Rs. 2000/- is available if Total income is less than Rs. 5 lacs

Deductions for Housing Loan:

For Principal Repayment:

• Deduction of Rs. 1 lac u/s 80C is allowed on Payment Basis if construction of house property is completed.

For Interest on loan:

• If Property is constructed/bought within 3 years then For self occupied Property : upto Rs. 2 lacs, For Let out Property: No limit,
• If Property not constructed/bought within 3 years thenDeduction upto Rs. 30,000/- only.
• Pre-construction interest is allowed after completion in 5 equal installments without any limit.

Clubbing of Income

Concept of joint filing of tax return does not exist.

There exists clubbing provisions for income of minor children and spouse in certain circumstances.

Salary earned by spouse :  Spouse salary from a concern where individual has a substantial interest ( > 20% stake)- Salary due to technical/professional expertise excluded).

Transfer of asset to spouse : Transfer of asset to spouse for inadequate consideration or otherwise than in connection with an agreement to live apart.

All Income of minor child : Exclusion available for manual work and Activities involving application of skills

Modes of tax payment

Withholding Tax

• Tax to be withheld from the remuneration paid by the employer even after departure if income exceeds maximum threshold limit not chargeable to tax .
• Annual certificate to be issued by the employer for salary and benefits.
• Withholding at prescribed rates on personal income.

Advance Tax

• Advance tax payable on
• other income, where it is liable to tax in India. (Tax Limit INR 10,000)
• Advance tax payable on personal income in three installments
• 30 per cent by 15 September
• 60 per cent by 15 December
• 100 per cent by 15 March

Income Tax slab for individuals (Click Here)

Advantages and Disadvantages of filing Return.

• Return filing is mandatory for getting any loan,
• Return filing is mandatory for getting VISA,
• For getting Credit Card,
• Standard proof of income,
• For quick registration of immovable properties,

Disadvantages of filing Return. If Return is not filed

• Penalty of Rs. 5000/- will be levied & also interest u/s 234A is required to be paid,
• Losses can not be carried forward to next year,
• No Revise Return can be filed,
• Interest upto 1% per month will be levied.

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Complete procedure to re-submit your Income Tax Return by e-filing portal.

If an assessee has filed his income tax return and subsequently found any omission or wrong statement therein, he can re-file/revise  the return with necessary modification. This re-filing of the income tax return is referred to as Revised Return. The process for revising the return is very simple. Please remember that the process outlined below is applicable if you had filed the original return online.

Rules related to Revised Return

• Revised return can be filed for any previous year at any time before the expiry of 1 year from the end of the relevant assessment year or before completion of the assessment whichever is earlier. For this financial year 2013-14), you can file the revised return till March 31st, 2014
• However, if the income tax department completes the assessment of your return earlier, then a revised return cannot be filed.
• Revised return can be filed only if the original return was filed before due date. Thus if a return is filed after a due date then it cannot be revised
• A loss return filed within time can also be revised and in such case loss as per the revised is carried forward
• One should have acknowledgement number and date of filing the original return in order to file a revised return
• Return filed in response to the notice u/s 148 can also be revised. It should be noted that notice u/s 148 is issued in respect of the escaped income in the respective assessment year
• In case of concealment of income and furnishing of inaccurate information in income tax return an individual will be penalized

How to file a revised return

• Check for the discrepancy in ITR-V form received from the original return e-filing.
• Log on to h t t p s: // i n c o m e t a x i n d i a e f i l i n g . g o v .i n /
• In the home page, Login through link of Registered Users.
• Prepare & Submit online Return under e-file & complete below detail as required.
• Enter the E-filing acknowledgement receipt number from the ITR-V (Which you got after the original return)
• Select the appropriate “return filed under section”. You will find options for 17-Revised 139(5).
• Press Save as Draft and continue and go ahead make changes and enter correct details
• Press Submit button on completion of data . You will get a new ITR-V marked as revised return.
• Once you receive the ITR-V form, you are supposed to send across both original and revised return ITR-V forms to IT department Bangalore within 120 days.

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Read Important Information before Filing/e-Filing of Income Tax Return.

Taxpayee must read carefully important information before filing/e-filing of Income Tax Return. There are some suggestions to Assessee regarding filing of Income Tax Return for Asstt. Year 2014-15.

Correct income tax return form :
There are many income tax return forms which also called ITR. These are divided among different types of taxpayers. You must know which is the correct ITR to fill. This will tell you which form you need to fill for income tax return.

ITR 1: If you have income from salary and pension; income from other sources, such as savings bank account and fixed deposit; and income from one house property.

ITR 2: For individuals or Hindu Undivided Families (HUF) with income from all heads applicable to ITR 1; house property (more than one); income from capital gains; income from other sources; and those who own foreign assets.

ITR 3: For an HUF or individual, who fulfils the criteria for ITR 2 and also is a partner in a firm, but does not carry on a proprietary business or profession.

ITR4: For individuals with income from business or profession.

ITR4S: For individuals with income from presumptive business.

Give correct personal details :
Each year, a large number regarding returns are rejected regarding incorrect personal details. The ITR form requires both your physical along with email address. Ensure a valid and functional email ID is provided inside form. If you are remaining in a rental accommodation or a hostel, avoid mentioning that address for the form. Instead, mention your current permanent address, even if it’s in a smaller town.

If you miss typing in one number or character of one's permanent account number (PAN), the contour cannot be processed. Apart from, you could be levied an excellent of R10, 000 a great incorrect PAN entry, much like income-tax rules. Similarly, you need to be careful about TAN of one's employer, which you will see in your Form 07. If you are expecting a refund, you must mention your bank’s family savings number and the nine-digit MICR variety. Ensure you fill this info correctly or your refund may get delayed unnecessarily.

Include many income :
There are certain incomes which might be left out erroneously including income from other resources. Even though long-term money gains and dividends through equity mutual funds and listed securities will not be taxable, they form an element of your income from other sources and it is advisable to give details about these inside form. While only short-term results are taxable for value mutual funds, both short- in addition to long-term gains from debts funds are taxable.

Numerous Form 16s :
If you’ve altered jobs in the middle of the financial year, ensure that you just collect Form 16s from both the employers. Many make the error of reporting only the existing employer’s income in their own returns. Since you’ve availed tax benefits from both employers, there could be a superb possibility that you still have additional tax liability during the time of filing returns.

TDS information for interest income :
As all banks deduct duty at source for interest accrued on your fixed deposit accounts, it doesn’t mean you won’t assess your duty liability and mention it with your form. In reality, banking companies only deduct 10% duty on interest income, whereas you might be in the higher duty slab of 20% or 30%. Recently, the income-tax department has started reconciliation of TDS facts received from banks along with the interest income reported by individuals within their returns. So, if you don’t give information regarding interest income in your return form, there is a chance that you may receive a notice through tax department. The portal will consider Form 16A details you’ve added and compute the info.

Source: www.taxalertindia.com

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5 Easy Steps for e-TDS/e-TCS Return Filing for Asstt. Year 2014-15

"Electronic Filing of Returns of Tax Deducted at Source Scheme, 2003". It is applicable to all deductors furnishing their TDS/TCS return in electronic form. As per this scheme:

• It is mandatory (w.e.f. June 1, 2003) for corporate deductors to furnish their TDS/TCS returns in electronic form (e-TDS return/e-TCS Return).
• From F.Y. 2004-2005 onwards furnishing TDS/TCS returns in electronic form is also mandatory for government deductors in addition to corporate deductors.
• Deductors (other than government and corporates) may file TDS/TCS return in electronic or physical form.
• NSDL e-Governance Infrastructure Limited (NSDL) as the e- TDS/TCS Intermediary (appointed by ITD) receives, on behalf of ITD, the e-TDS/TCS returns from the deductors.

The 5 easy steps for e-TDS/e-TCS Return are as follows:

Step : 1

The data structure (file format) in which the e-TDS / e-TCS return is to be prepared has been notified below:

Quarterly Return :

For Regular Statements pertaining to FY 2010-11 onwards:

• File Format for Form 24Q (1st, 2nd & 3rd Quarters) Version 4.7
• File Format for Form 24Q (4th Quarter) Version 4.9
• File Format for Form 26Q Q1 to Q4 Version 4.8
• File Format for Form 27Q Q1 to Q4 Version 4.8
• File Format for Form 27EQ Q1 to Q4 Version 4.8

For Regular Statements up to FY 2009-10

• File Format for Form 24Q (1st, 2nd & 3rd Quarters) version 4.5
• File Format for Form 24Q (4th Quarter) version 4.5
• File Format for Form 26Q version 4.5
• File Format for Form 27Q version 4.5
• File Format for Form 27EQ version 4.5

For Correction statements pertaining to FY 2010-11 onwards:

• File Format 24Q Correction Q1 to Q3 Version 4.8
• File Format 24Q Correction Q4 Version 5.0
• File Format 26Q Correction Q1 to Q4 Version 4.8
• File Format for Form 27Q correction Q1 to Q4 Version 4.8
• File Format for Form 27EQ Q1 to Q4 Version 4.8

For correction statements up to FY 2009-10:

• File Format 24Q Correction Q1 Q3 Version 4.5
• File Format 24Q Correction Q4 Version 4.5
• File Format 26Q Correction Q1 Q4 Version 4.5
• File Format 27Q Correction Q1 to Q4 Version 4.5
• File Format 27EQ Correction Q1 to Q4 Version 4.5

Step : 2

e-TDS/e-TCS return in accordance with the file formats is to be prepared in clean text ASCII format with 'txt' as filename extension. e-TDS/e-TCS return can be prepared using in-house software, any other third party software or the NSDL e-TDS Return Preparation Utility .

Feedback Form

Sample files prepared as per the file formats given below for reference.

Quarterly Return :

For statement pertaining to FY 2010-11 onwards:

• Sample file for Form 24Q (1st, 2nd & 3rd Quarter)
• Sample file for Form 24Q (4th Quarter)
• Sample file for Form 26Q
• Sample file for Form 27Q
• Sample file for Form 27EQ

For statement upto FY 2009-10

• Sample file for Form 24Q (1st, 2nd & 3rd Quarter)
• Sample file for Form 24Q (4th Quarter)
• Sample file for Form 26Q
• Sample file for Form 27Q
• Sample file for Form 27EQ

Step : 3 

Once the file has been prepared as per the file format, it should be verified using the File Validation Utility (FVU) provided by NSDL.

* FVU for Quarterly Returns: e-TDS / e-TCS returns prepared upto FY 2009-10 (i.e. Forms 24Q, 26Q, 27Q and 27EQ) can be validated using this utility.

* FVU for Quarterly Returns: e-TDS / e-TCS returns prepared for FY 2010-11 and onwards (i.e. Forms 24Q, 26Q, 27Q and 27EQ) can be validated using this utility.

Step : 4 

In case file has any errors the FVU will give a report of the errors. Rectify the errors and verify the file again through the FVU.

Step : 5

The upload file generated by the FVU on successful validation is to be furnished to a TIN-FC or directly uploaded through the NSDL web-site.

Quarterly Returns:

Each e-TDS/TCS return saved in a CD/Pen Drive to be submitted along with a signed copy of the control chart (Form 27A). With effect from February 1, 2014, it is mandatory to submit Form 27A generated by TDS/TCS FVU (File Validation Utility) duly signed, along with the TDS/TCS statement(s). Any other Form 27A submitted will be treated as invalid submission and the same will be rejected by TIN-FC branches. .

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What happen, when you haven’t filed tax returns till 31.03.2014 of previous year ?

In an effort to meet the revenue targets, the Income Tax ( IT) department will be sending letters to 2.3 million assessees who have not filed returns. It has already issued letters to 2.45 million individuals. Therefore, if you haven’t filed taxes for the financial year 2012- 13 ( Fin.Year 2013), you still have time in hand. The Income Tax department will accept returns till the end of the assessment year, that is, till March 31, 2014. 

Importantly, if all your taxes are paid, you will not even be levied a penalty or get a notice for not filing returns for 2012-13, if you do so by March 31. For FY13, you can file late returns till March 31, 2015. However, if returns are not filed till March 2014 and there is no outstanding tax, you can be charged a penalty of Rs. 5,000. But, if you have an outstanding tax liability, you will be levied an interest at one per cent per month above the penalty. There can be another chargeable interest component under Section 234(B). It deals with delay in depositing advance tax and charges one per cent interest every month starting April 1, 2013, till such time the outstanding amount is paid. “Advance tax provisions are applicable only to those who have an outstanding advance tax liability of Rs. 10,000 or more annually (under Section 234( B)). However, if such an individual has paid 90 per cent of the outstanding tax liability, then Section 234( B) is not applicable,” says Vineet Agarwal, director at KPMG. 

If the tax due is more than Rs. 10,000, you pay an advance tax. Advance tax is payable in three tranches — 30 per cent is to be paid by September 15 of the relevant financial year, next 30 per cent or 60 per cent of the total liability by December 15 and the remaining 30 per cent or 100 per cent of the amount due by March 31. Those who haven’t filed returns for FY12, can also file late returns till March 31. There could be a penalty of Rs. 5,000 for late filing, depending on the assessing officer. Experts say penalty is invoked largely when there is an additional tax liability. 

The tax department considers genuine reasons for not filing returns, such as serious illness or injury. Though the tax laws give a grace period for late returns, it also takes away some of your rights. For instance, you cannot revise your tax return if it has been filed after the due date ( July 31). If you have filed by the due date, you can alter it any number of times before the end of the assessment year ( March 31), or till the return is assessed. However, thereafter you are not allowed to change it. So, if you miss out on any deduction or exemption, you can’t claim it later. “You also cannot carry forward any short- term or long term losses if you have filed after the due date,” says Kuldip Kumar, executive director ( tax & regulatory services) at PwC. 

Taxpayers, who have filed by the due date, can carry forward capital losses and adjust them against future capital gains. You can carry forward such losses up to eight financial years. So capital losses suffered in 2012-13 can be adjusted against gains till 2020-21 if you file returns on time. 

- www.business-standard.com

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Impact of Non Filing of Income Tax Return in Due Date.

You have to Pay Interest on Income Tax Due if you don’t file on time  If you do not file the Income Tax Return by the due date:

You are liable to pay interest at the rate of one percent for every month after the due date till the date of filing the return.

If No Tax is due: Interest is calculated on the amount of tax payable after adjustment of pre-paid taxes like advance tax, TDS etc. So, if there is no tax payable on the basis of the Income declared in the Tax Return, there is no liability for the payment of interest.

You don’t get the benefit of Carry Forward of Losses if you don’t file on time Under income tax law, if you have sustained a Business loss or loss under the head “Capital Gains”, you can carry forward the loss ONLY if you file the Income Tax Return by the due date.

Therefore, if you have sustained a loss, you must file your Income Tax Return in time if you want to carry forward the loss for future adjustment with your Income.

Possibility of Penalty or Prosecution by the Income Tax Department

Say you could not file the Income Tax Return by the due date: To avoid any penalty by the Income Tax Department, you must file your Income Tax Return before the end of the relevant assessment year that is 31st March 2013.

Possibility of Penalty and Prosecution: If you do not file your Income Tax Return by 31st March 2013, the Income Tax Department may impose a penalty of Rs. 5000, even though the tax payable by you may be Zero.

Further, if a person has failed to file the Income Tax Return by 31st March 2013 and the tax payable after adjustment of advance tax and TDS exceeds Rs. 3000, he may be prosecuted for imprisonment also. However, this law is used in practice very rarely.

Other reasons for filing the returns of income within time If a refund is due after adjustment of prepaid taxes, it is necessary to file the Income Tax Return to get the refund from the Income Tax Department.

Bank Loans: Further, the return is a declaration of your income and it will be extremely helpful when you are applying for a loan from bank. Before granting the loan, banks want to know your financial capacity and your income details as shown by you in income tax returns.

Visas of foreign countries: Many countries want to know if you are financially sound before they issue you a visa and for this purpose they will rely on your income tax returns.

Source: Yahoo Finance

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Income Tax Return Filing is Mandatory to Universities & Colleges u/s. 139(4D).

Return under section 139(4A) is required to be filed by every person in receipt of income derived from property held under trust or other legal obligation wholly for charitable or religious purposes or in part only for such purposes, or of income being voluntary contributions referred to in sub-section (iia) of clause (24) of section 2, shall, if the total income in respect of which he is assessable as a representative assessee (the total income for this purpose being computed under this Act without giving effect to the provisions of sections 11 and 12) exceeds the maximum amount which is not chargeable to income-tax.

Return under section 139(4B) is required to be filed by a political party if the total income without giving effect to the provisions of section 139A exceeds the maximum amount which is not chargeable to income-tax.

Return under section 139(4C) is required to be filed by every –

1. scientific research association referred to in section 10(21);
2. news agency referred to in section 10(22B);
3. association or institution referred to in section 10(23A);
4. institution referred to in section 10(23B);
5. fund or institution or university or other educational institution or any hospital or other medical institution referred to in section 10(23C)(iv)/ (v)/ (vi) If the conditions mentioned in section 139(4C) are satisfied.

Return under section 139(4D) is required to be filed by every university, college or other institution referred to in clause (ii) and clause (iii) of sub-section (1) of section 35, which is not required to furnish return of income or loss under any other provision of this section.

Return of income is also required to be filed by a person if his total income before allowing deductions under section 10A or section 10B or section 10BA or Chapter VI-A exceeds the maximum amount which is not chargeable to income tax.

The losses, shall not be allowed to be carried forward unless the return has been filed on or before the due date.

The deduction under sections 10A, 10B, 80-IA, 80-IAB, 80-IB and 80-IC shall not be allowed unless the return has been filed on or before the due date.

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File Income Tax Return in July-13. Genuine Guidelines, Precautions etc. for A.Y. 2013-14

The due date for filing personal tax returns for the financial year 2012-13 is July 31. Taxpayers need to be aware of various points while filing their returns. Filing incorrect details may result in interest, penalty or delay in refunds. These points can help you file your return correctly.

Choose the correct form: Different forms available for tax filing are ITR-1 (Sahaj), ITR-2, ITR-3, ITR-4S (Sugam) or ITR-4. The form selection is dependent on your source of income. For example, if you have rental income from two houses or capital gains, ITR-2 would be applicable. However, if you have only salary income and certain other incomes, then ITR-1 is applicable.

Claim all your deductions: Some investments and donations are eligible for deduction from the total income. If you were unable to claim the deduction from your employer, you can claim the deductions in your tax return, subject to certain conditions. Make sure that you have claimed the deductions under the appropriate head in the return.

Claim all your past and current losses: As per the Income-tax Act, 1961, certain losses can be carried forward and set off from next year’s income. You should take stock of such losses, which can be very helpful in reducing your tax liability.

Mention the exempt incomes: Incomes like interest on NRE bank accounts, dividend, agricultural income, exempt income of minor child, etc, are classified as exempt income. Although you don’t have to pay tax on such income, tax returns have a specific schedule to report such income.

Pay the balance tax liability: If there is any balance tax liability after considering TDS / advance tax paid, then the balance tax liability along with any interest should be deposited as self assessment tax before filing the tax return.

Verify your Form 26AS: You can log on to www.income taxindia.gov.in or to www.tin.nsdl. com and download the Form 26AS. This form has all details of tax deducted and deposited against your PAN. This means that TDS, advance tax and self-assessment tax will all be reflected in this form.

Mention the correct personal details: You need to mention your name, father’s name, PAN, address, date of birth, residential status, etc. You also need to provide the correct bank account number and the IFSC code so that refund, if any, can be credited to your bank account.

Report assets and liabilities under certain cases: A new ‘Schedule AL’ has been added to ITR 3 and ITR 4, which are used by taxpayers having partnership or business income. As per the new schedule, if the taxpayer’s total income exceeds Rs 25 lakh, he will be required to report details of his assets along with liability against such assets. Collect all these details so that it can be mentioned in the tax return.

Check the filing procedure: Check the filing mode applicable to you – is it online or physical filing? It is mandatory to file your tax returns online if your taxable income is above Rs 5 lakh. Taxpayers earning income up to Rs 5 lakh need not file returns, subject to certain conditions.

Submission of ITR V: Upon online filing of tax return online, the tax return acknowledgement (ITR V) is required to be signed and sent to the Central Processing Centre (CPC), Bengaluru. It should be ensured that the signed ITR V is signed in blue ink only and submitted with CPC within 120 days of filing of tax return online.

Source: www.caclubindia.com

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Updated all Income Tax Forms for Asstt. Year 2013-14 free download.

Income Tax Department has published updated Income Tax ITRs for Annual Income Tax Return i.e. ITR-1 (Sahaj), ITR2, ITR-3, ITR-4, ITR-4S (Sugam) and ITR-5 to file Income Tax Return for Asstt. Year 2013-14. The all revised ITR Forms are available in "PDF" Format. Income Tax Department has started uploading ITR-1 (Sahaj) and ITR-4S (Sugam) online or offline.  It has released latest Excel Base Utility for Taxpayers to submit Annual Income Tax Return for Asstt. Year 2013-14 with new amendments.  The latest amendment in Income Tax Return Forms this Excel utility is available Income tax return Sahaj(ITR-1) and Sugam(ITR-4S) online/offline with Checklist of documents and pre-requisites.

Download Income Tax Software For Asstt. Year 2013-14

Sl.No.	Form name	Category	Description
1	ITR-1 SAHAJ (A.Y. 2013-14)	English Hindi Form  Instructions English Instructions Hindi	Indian Individual Income tax Return
2	ITR-2 (A.Y. 2013-14)	English Hindi Form  Instructions English  Instructions Hindi	For Individuals and HUFs not having Income from Business or Profession
3	ITR-3 (A.Y.2013-14)	English Hindi Form  Instructions English  Instructions Hindi	For Individuals/HUFs being partners in firms and not carrying out business or profession under any proprietorship
4	SUGAM (ITR-4S) (A.Y. 2013-14)	English Hindi Form  Instructions English  Instructions Hindi	Sugam - Presumptive Business Income tax Return
5	ITR-4 (A.Y. 2013-14)	English Hindi Form  Instructions English  Instructions Hindi	For individuals and HUFs having income from a proprietory business or profession
6	ITR-V (A.Y. 2013-14)	English Form Hindi Form	-

Download Form 16 Software with Annexure A & B For Asstt. Year 2013-14

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Refund Case Processing of e-Returns of Asstt. Year 2012-13.

Clean up of demand uploaded to CPC FAS before issue of refund in cases processing of e-returns of A.Y. 2012-13

letter [F.No. DIT(S)-III/CPC/2012-13 - 14161-78], dated 5-11-2012

On the above subject, details of cases where refunds have been claimed in e-Returns for A.Y. 2012-13 and where assessing officers have uploaded demands to CPC Portal, have been extracted and place on I-Taxnet [Annexure]. The data can be accessed on following path:

Resources-Downloads-DIT Systems-Processing of E-Returns of A.Y. 2012-13-Clean up of Demand uploaded to CPC

2. The assessing officers are required to verify uploaded arrear demands in CPC portal in these cases and certify their correctness before they are considered for adjustment against refunds. This is to ensure that no undue hardship is faced by taxpayers, consequently generating grievances.

3. Each CCIT may, therefore, monitor this verification process and certify these demands within a period of 21 days. A compliance report may also be sent to respective Zonal Members, CBDT with copy to CIT (CPC) Bangalore at his e-mail id: cit. cpc. bangalore@incometaxindia.gov.in

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How to File your Income Tax Return - Online for Assessment Year 2012-13 and get Benefit of Return in short period?

Filing incoming tax returns is not a laborious ordeal anymore. E-filing or filing tax returns online has made the process a whole lot simpler. E-filing of tax returns acts as one of the options for the direct tax payers in India. There are three different ways of filing returns online:

1. File returns using a digital signature. By this option there is no need for a paper return to be submitted.

2. File without using the digital signature. By this option the ITR-V form has to be filled. This form is a one-page receipt but also serves as a verification form.

3. Take help from an E-filing intermediary who makes the filing returns and filling the ITR-V form a whole lot easier.

Details required before logging in to the site

You will need an account with a bank that has net-banking facility. The bank must be one that has e-payments. If you are a first time user, i.e if you have never e-filed your returns you will need to register with this website www.incometaxindiaefiling.gov.in and create a user name and password. You will need your PAN card number for the same. Your address details are extracted from the PAN. You must enter other personal details carefully. The email address is important as all communication regarding this will be through the email address you provide. Once you have registered, an e-mail will be sent to you confirming registration after you activate your account. Once this is done, you are ready to file your income returns online. You must now download the appropriate ITR form.

Steps to file Income Tax Return online

* Log into www.incometaxindiaefiling.gov.in and create a username and password.
* Go through all the heads of income under which you will be taxed and select the relevant Income Tax Return.
* Download the Return Preparation software and fill in the details of your ITR. The Income Tax India website also provides an instruction sheet on how to fill the ITR form.
* If there is any tax to be paid then make an online payment and generate the challan counterfoil along with the CIN. Now complete the Income Tax Return form with the details from the challan and CIN along with the payment details and the details of the bank through which the e-payment has been made.
* After this generate an XML file from the filled return using the software downloaded earlier. An XML is a format that helps the IT Department enter the details into its database.
* Now select the appropriate form on the left side of the page and click ‘Submit return’. Select the XML file and click ‘Upload’. Once the uploading is successful it will be acknowledged on the screen.
* Click on ‘Print ’ to get a copy of the ITR-V form.

If the return has a digital signature then the filing process is complete upon the acknowledgement notification and the print out is required only to keep a personal copy. But if it does not have a digital signature then the ITR-V form needs to be printed out by the tax payer. As mentioned earlier, this is an acknowledgment as well as a verification form and all the details need to be filled in and verified. The tax payer has to fill-up the verification part and verify the same. A duly verified ITR-V form should be mailed to “Income Tax Department – CPC, Post Bag No – 1, Electronic City Post Office, Bangalore – 560100, Karnataka,”BY ORDINARY POST OR SPEEDPOST ONLYwithin 120 days after the date of transmitting the data electronically.

Benefits of e-filing over paper filing

One of the foremost benefits of e-filing is the flexibility of filing your returns anywhere / anytime with access to the internet. Online tax returns are processed much faster than paper returns and the tax is worked out automatically as the payee completes the form. With this the payee also gets the acknowledgment slip immediately. Also online filing is a safe and secure mode.

Deadlines for filing returns

The last date to file your returns is July 31, 2011. For those who need to get their account books audited under the Income Tax Act, the last day is October 1, 2011.

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On Salary Bank Account interest Amount is less than 10000 then No need to file Income Tax Return

Income Tax Act has been exempted to submit Income Tax Return from the Financial Year 2012-13 to such Salaried Employee (Taxpayee/Assessee) whose Salary Income Below or Rs. 500000 under section 139 of the Income Tax Act.  This act will be in force from the financial year 2012-13. In this regard income tax department also adds that the salary holder whose bank interest income is less than 10000, will also qualify for not submitting income tax return. Full notification is as under.

NOTIFICATION NO. 9/2012 [F. NO.225/283/2011-ITA(II)], DATED 17-2-2012

S.O........... (E). - In exercise of the powers conferred by sub-section (IC) of section 139 of the Income-tax Act, 1961 (43 of 1961), the Central Government hereby exempts the following class of persons, subject to the conditions specified hereinafter, from the requirement of furnishing a return of income under sub-section (1) of section 139 for the assessment year 2012-13, namely:-

1. Class of persons. -An individual whose total income for the relevant assessment year does not exceed five lakh rupees and consists of only income chargeable to income-tax under the following head,-
(A)  "Salaries";
(B)  "Income from other sources", by way of interest from a saving account in a bank, not exceeding ten thousand rupees.

2. Conditions,- The individual referred to in para 1,-
 (i)  has reported to his employer his Permanent Account Number (PAN);
(ii)  has reported to his employer, the incomes mentioned in sub-para (B) of para 1 and the employer has deducted the tax thereon;
(iii)  has received a certificate of tax deduction in Form 16 from his employer which mentions the PAN, details of income and the tax deducted at source and deposited to the credit of the Central Government;
(iv)  has discharged his total tax liability for the assessment year through tax deduction at source and its deposit by the employer to the Central Government;
(v) has no claim of refund of taxes due to him for the income of the assessment year, and
(vi)  has received salary from only one employer for the assessment year.

3. The exemption from the requirement of furnishing a return of income tax shall not be available where a notice under section 142(1) or section 148 or section 153A or section 153C of the Income-tax Act has been issued for filing a return of income for the relevant assessment year.

4. This notification shall come into force from the date of its publication in the Official Gazette.

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NOW INCOME TAX REFUND THROUGH ATM

Friends, Good news for every taxpayee whose Income Tax Refund claimed at Income Tax Department but they till not got their Income Tax Refund amount. Now, the Income Tax Department tying-up with Banks for providing this facility to get Income Tax Return through ATMS. The Income Tax Department provide facility only for tax deducted at source (TDS) to view details through internet banking and payment of tax should paid at ATMs (automated teller machines), the income tax department is planning to take the convergence of banking and tax services to the next level. The department plans to give taxpayers the facility of applying for tax refunds and tax credits through ATMs.

Taxpayers will also be able to check the status of their refund applications at ATMs. They will also be able to spot mistakes they may have made while filing for refunds/credits. In future, taxpayers may also be allowed to file returns through the banking channel. “The revenue department plans to expand collaboration with banks. Taxpayers will be able to apply for refunds and get them through ATMs.

They may also be allowed to file returns through ATMs. The idea is in initial stages, but some Nordic countries such as Sweden have already implemented it,” a finance ministry official told Business Standard . The department expects these measures to increase tax compliance and collections, besides making the interface between the government and taxpayers more efficient and transparent. For this, the department is ramping up its information technology (IT) infrastructure.

The finance ministry has approved the setting up of two special purpose vehicles. One is called the Goods and Services Tax. The second is called the Tax Information Network. While the government will concentrate on policy formulation and enforcement, the NIUs will focus on implementation of IT systems.

The revenue department has already allowed banks to display Form 26AS of taxpayers on their internet banking portals. FORM 26AS IS a consolidated statement of a financial year and has details of TDS, tax collected at source and advance tax/self-assessment tax/regular assessment tax deposited in the bank. It also includes refunds received during a financial year. The form is available only from assessment year 2005-06. The facility of paying income tax through ATMs, launched earlier this year, is being provided by many banks, including Oriental Bank of Commerce, Union Bank of India, Corporation Bank and Axis Bank. Most were already accepting tax payments at their branches and portals.

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Registered & Download Free Income Tax Return Filing Software for Assessment 2011-12

Friends, It is general demand of every tax payee that they how to file Online Income Tax Return Preparation & eFiling Software of ITR-5 & ITR-6 with Excel Utility. The Income Tax department releases on 22.05.2011 official Free Online Income Tax Return Preparation/eFiling Software for ITR-5 which is applicable for partnership Firms and Limited Liability partnership Firm and ITR-6 applicable for Companies. The both ITR-5 & ITR- are only for Assessment year 2011-12 as Income tax Return Filing.

The Income Tax Department has already provided software in respect of ITR -1, ITR-2 , ITR-3 , ITR 4 and ITR 4S.

Registered & Download Now:

Sr. No.	Download Below Excel Utility Software	Form No.
1	Excel Utility (Ver. 1.0)	ITR-5
2	Excel Utility (Ver. 1.0)	ITR-6

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