Remember Important points before e-Filing of TDS Return Quarterly.

Remember Important points before e-Filing of TDS Return Quarterly

Given below are the points one should remember before filing quarterly TDS statement:

• Correct Reporting: Cancellation of TDS statement and deductee row is no longer permissible. Accordingly, it is very important to report correct and valid particulars (TAN of the deductor, Category (Government / Non-Government) of the deductor, PAN of the deductees and other particulars of deduction of tax) in the quarterly TDS statement
• Quote correct and valid lower rate TDS certificate in TDS statement wherever the TDS has been deducted at lower / zero rate on the basis of certificate issued by the Assessing Officer
• Last provisional receipt number to be quoted in regular TDS / TCS statements: While filing new regular (original) TDS statement, it is mandatory to quote the last accepted provisional receipt number of the regular quarterly TDS / TCS statement of any form type
• TDS statement cannot be filed without quoting any valid challan and deductee row
• Late filing fee, being statutory in nature, cannot be waived
• Download PAN Master from TRACES and use the same to file new statement to avoid quoting of incorrect and invalid PAN
• Validate PAN and name of fresh deductees from TRACES before quoting it in TDS statement
• Download TDS certificate (Form16A) from TRACES (http://www.tdscpc.gov.in) bearing unique TDS certificate number and issue to the taxpayers within due date
• File correction statements promptly in case of incomplete and incorrect reporting
• Download the justification report to know the details of TDS defaults, if any, on processing of TDS statement
• Do view your Dashboard regularly to know about your TDS performance
• Government deductors should obtain BIN (Book Identification Number) from their Accounts Officer (AIN holder) in time and quote the same correctly in TDS statement

Source: www.tdsman.com

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Importance and Benefits of filing of Income Tax Return in Due Time.

There are too many silent benefits of Income Tax Return filing in due time.  Out of which, some are explained below.   After viewing below points, every assessee should file his Income Tax Return in time. 

Benefits of Filing your Income Tax Return in time

Under Income Tax Act if your total income exceeds the basic exemption limit: You have to file the Income Tax Return within the prescribed time, i.e. by the due date.

The due dates of filing returns for Assessment Year 2015-16 are the following:

Category	Due Date
(a)   Most people fall in this category – Salaried employees, pensioners and other persons whose accounts are not required to be audited	31st August, 2015 (Extended Date)
(b)   Companies and other persons whose accounts are to be audited	30st September, 2015

What happens if a person does not file the Income Tax Return by the 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 2016.

Possibility of Penalty and Prosecution: If you do not file your Income Tax Return by 31st March 2016, 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 2016 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.

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e-Filing Return reminder for Assessment Year 2014-15 email by CBDT

Recently, CBDT has been sent an e-mail to those assessees whose Income Tax Return for Assessment Year 2014-15 yet not filed in Income Tax Department by e-filing process.  This reminder is based on data available with e-filing website of Income tax India which filed by assessee in previous year.  By this reminder, department of Income Tax asked some questions in a online form in which Assessee has to inform or provide the reason for non filing of return. Assessee can choose the option applicable to him and after choosing his option he can click the submit button given in the email, which is as under :

A format of one such letter is as follows :-

Reminder for Filing of Income Tax Return for Assessment Year 2014-15 – PAN: ABCPJXXXXP
 

Dear Taxpayer,

          This is a gentle reminder for you to file your Income Tax Return for Assessment Year 2014-15. Though, the due date for filing returns for AY 2014-15 is over, there is a provision under the Income Tax Act to file a belated return which may help you to remain compliant with requirements of law. E-filing is simple, easy and convenient as you would have experienced in previous years.

          You are, therefore, kindly requested to login to https://incometaxindiaefiling.gov.in and download the free return preparation software with a host of new features to help you in preparing the Income Tax return and submit your return. You can also prepare and submit ITR-1 and ITR-4S online.

          Please take some time to browse through all the value – added services offered on the E-filing website that will help you prepare your return accurately and guide you in case of any prior pending items.

• Will be submitting ITR shortly.
• Already submitted the ITR of AY 2014-15 online.
• Already submitted the ITR of AY 2014-15 in paper-mode.
• Income is below taxable limit for AY 2014-15.

         Needless to mention that the quicker you submit your return and send the signed ITR-V (ITR-Verification) form to CPC, Bangalore, the faster you will get your refund, if any, credited to your bank account. As on 23rd December 2014, over 58.17 lakh refunds have already been issued for AY 2014-15! File early to get your return processed soon.

Regards,
e-Filing Team,
Income Tax Department

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Taxpayee Employee get exemption of EPF even if paid after due date.

As per the section 43B of Income Tax Act, 1961 taxpayee Employee can get benefit of Exemption of Employee's contribution even if paid after due date of fund but before due date of filing Income Tax Return under the head Profits and gains of business or profession.

Section 43B

Deduction allowed on actual payment:
Notwithstanding anything contained in any other provisions of the income-tax Act, in respect of certain expenditure/payments, the deduction is allowed (irrespective of the previous year to which the liability to pay such sum was incurred by the assessee according to method of accounting regularly employed by him) only if the amount has been actually paid during the previous year. However, in case an assessee follows mercantile system of accounting, the payments mentioned below can be claimed on ̳due‘basis, provided the payment for the same is made within stipulated period mentioned against each expenditure:

Nature of Expense

• Any sum payable by way of tax, duty, cess or fee, by whatever name called, under any law for the time being in force.
• Any sum payable by the assessee as an employer by way of contribution to any provident fund or superannuation fund or gratuity fund or any other fund for the welfare of employees.
• Any sum payable to an employee as bonus or commission for service rendered.
• Any sum payable by the assessee as interest on any loan or borrowing from any public financial institution or State Financial Corporation or State Industrial Investment Corporation like IDBI, IFCI, UPSIDC, Delhi Financial Corporation, etc., in accordance with the terms and conditions of the agreement governing such loan or borrowing.
• Any sum payable by the assessee as interest or any loan or advance from scheduled bank in accordance with the terms and conditions of the agreement governing such loan.
• Any sum payable by the assessee as an employer in lieu of any leave at the credit of his employee.

As amended by Finance Act, 2013

Presently, payment of interest on any loan/borrowing from a public financial institution, State Financial Corporation or State Industrial Development Corporation and interest on any loan/advance from a scheduled bank is allowed as a deduction from business income, when such interest is actually paid.

Provisions of Sec.43B are applicable only in respect of employers contribution to provident fund, ESI, etc. Employees contribution to provident fund, ESI, etc., shall be allowed as deduction only when the payment of the same is made on or before the due date mentioned under the respective welfare Acts. If the employer‘s contribution to such fund is paid after the due date under the respective Acts, the deduction for such payment made by the employer shall not be allowed under Sec. 36(1)(va).

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All about Conso File - FAQs

1. What is a conso file?

It is the consolidated data of the statements processed (regular & correction) for the relevant Financial Year, Quarter and Form Type.

2. Why is a conso file required?

While filing correction for a particular Financial Year, Quarter and Form Type, conso file provides details about all the previous corrections made in the relevant statement. This file gets updated each time a correction is filed for the particular Financial Year, Quarter and Form Type. Hence, each time a correction statement is to be filed for the given combination, a fresh conso file is required.

3. From which year is conso file available on TRACES?

Conso file is available on TRACES from FY 2007-08.

4. What would be the file extension for the consolidated file?

The file extension would be in “.tds” format.

5. How can I download conso file?

Login to TRACES as deductor and submit download request for the conso file under ‘Request for Conso File’ in ‘Statements / Payments’ tab. File will be available under ‘Requested Downloads’ in ‘Downloads’ tab.

6. Is it mandatory to download a conso file while filing correction statement?

Yes. It is mandatory, as it enables accuracy during correction filing.

7. What is the password for opening Conso file?

The password for opening Conso file will be your TAN_Request Number in capital letters.

8. I want to submit request to download the conso file, will system allow me to pass through validation screen without any challan and deductee detail?

Yes, you can download the conso file even if you have zero challan detail and no deductee record for the statement.

9. I have filed a paper return, and want to download the consolidated file for the same on TRACES. How should I proceed?

Conso file will not be available in case of paper return. Refer e–Tutorials for more details.

10. While entering validation details for submitting request to download conso file, I have entered details correctly in Part 1 and Part 2 of the validation screen, yet it shows error as ‘Invalid Details’ in Part 1 or Part 2. What should I do?

Details to be filled in validation screen should be exactly the same as reported in the TDS statement. If you have filed any correction statement, Token Number and other details should be as per the latest correction statement.

11. While entering validation details for submitting request to download conso file, I am getting an error, ‘More than one PAN in the challan’. What should I do?

In such case, CIN of that challan should be entered which has been claimed for at least two, three or more PANs.

12. While entering validation details for submitting request to download conso file, I am getting an error, ‘Invalid Token Number’. How do I rectify the error?

Enter Token Number for latest accepted statement (regular or correction) for the statement for which conso file is being requested.

13. While submitting request to download conso file, I am getting an error message that request has failed. What should I do?

In such cases, request for downloading conso file needs to be resubmitted.

Source: TRACES

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One Mobile Number and e-mail-ID allows for 10 user accounts in e-filing portal - CBDT

CBDT has released a press note on 04th July, 2014 to allows usage of one mobile number and email-id for 10 user accounts in e-filing portal.  The Press Release note is as follows :

UPDATE AND VALIDATE TAXPAYER EMAIL ID AND MOBILE NUMBER FOR THEIR E-FILING ACCOUNT

PRESS RELEASE, DATED 4-7-2014

A valid Email ID and Mobile Number has to be registered/updated on the e-filing website of the Income Tax Department so that direct communication with taxpayer can be possible. For details, taxpayers can logon to: https://incometaxindiaefiling.gov.in/eFiling/Portal/StaticPDF/Update_Contact_Details.pdf)

The Department will send separate One Time Passwords (OTP) also referred as PIN on the mobile and email provided by the taxpayer. The OTPs have to be entered by the taxpayer after logging into their e-filing account to authenticate the same. The OTPs will remain valid for 24 hours within which the taxpayer has to complete the process. For 'Foreign/ NRI' taxpayers, the OTP validation of the email ID would be sufficient.

Validation of email and mobile numbers has been introduced to facilitate taxpayers as in many cases incorrect emails and mobile numbers have been provided and taxpayers did not receive important communication from the Department. Further, it has been observed that in many cases taxpayers are not able to reset their password since the new temporary password from the Department may be sent to their registered email which may be different from the taxpayer's personal email, e.g. email of their intermediary.

This is a one-time process to validate the mobile number and email ID. However, whenever the taxpayer changes the Mobile Number or email ID in their Profile, the process will be repeated to ensure that the particulars provided are correct. Further, this validation will ensure that Department can send an OTP for resetting the password used for Login in case the taxpayer has forgotten the password.

One mobile number or email ID can be used for a maximum of 10 user accounts as the Primary Contact- Mobile Number and Email ID in e-Filing. This is to ensure that family members and related business concerns (not exceeding 10 separate users) not having personal email or mobile can be covered under a common email or mobile, but in general taxpayers should have their own unique email ID and Mobile registered with the Department.

The taxpayer can enter any other person's email or mobile number in addition, as a Secondary Contact (without any restriction on the number of user accounts linked as a Secondary Contact). Using "Profile Settings → My Profile" the taxpayer can select to include the Secondary Contact to also receive emails, alerts etc.

It is advised that the emails and SMS from the Income tax Department may be included in the 'safe list' or 'white list' to prevent the communications from the Department from being blocked or rejected or sent to Spam folder. Taxpayers are also advised not to share their user-id and password of their e-filing account with others to prevent un-authorized access. Taxpayers can reset their password using the 'Forgot Password?' link while logging in to their e-filing account and by providing the necessary details.

The Department requests the cooperation of all taxpayers for completing this validation process at the earliest for a smooth and convenient return filing process.

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Important announcement for Tax payers for updating contact details in e-Filing Portal.

Dear Tax Payers,

Income-Tax Department uses the registered contact details (Mobile number & E-mail ID) for all communications related to e-Filing. It is mandatory that all tax payers must have a valid contact details registered in e-Filing portal. 

It is noticed that many registered users are not having authenticated contact details in e-Filing or may have provided details of other persons for convenience. This prevents the Department from interacting directly with taxpayers on their personal email and Mobile.

Further, it has been observed that in many cases taxpayers are not able to reset their password since the email communication from the Department may be sent to their registered email or Mobile which may be different from the taxpayer’s personal email or mobile. 

Hence, it is requested that all the e-Filing users may immediately update and authenticate their correct contact details so that the communication can be sent to the valid Mobile number and E-mail ID.

The process of updating and authenticating the contact details has been given below:

New User:

Provide the correct Mobile Number and Email ID during the Registration in the e-Filing portal, Activation link would be sent to the registered E-mail ID and a One Time Password (OTP also called PIN) is sent to the registered Mobile Number. User needs to Click on the Link provided in the E-mail and enter the OTP received in the mobile number for Successful activation of the registered user in e-Filing portal.

Registered User:

After the user logs in to the e-filing account, there will be a pop-up requesting the user to update the current Mobile number and E-mail ID. The user should update their personal Mobile number and Email so that the updated contact particulars are registered with the Department or confirm that the Mobile number and email ID already registered is their valid personal contacts.

Upon submitting the details, Department would immediately send OTPs (PIN1 & PIN2) to new mobile number and Email ID. The respective PINs- PIN1 and PIN2 received through Mobile number and E-mail ID should be entered by them in the respective input fields to authenticate that the email ID and mobile are correct. Upon successful validation the Mobile number and email ID would be updated in the taxpayer’s profile and the process would be complete.

The PIN1 and PIN2 would be valid only for the session – so taxpayers are advised not to close the webpage till PINs are entered and validated. In case of any difficulty or delay, the taxpayer can log in again and follow the same process to update the current contact details.

Note: Taxpayers are advised to follow the process mentioned above in the interest of the security of their e-filing account and to directly receive communication from the Department about status of processing and issue of refunds etc. This is a one-time process to validate the mobile number and email ID. However, whenever the taxpayer changes the Mobile Number or email ID in their Profile, the process will be repeated to ensure that the particulars provided are correct. One mobile number or email ID can be used for a maximum of 4 user accounts as the Primary Contact- Mobile Number and Email ID in e-Filing. This is to ensure that family members (not exceeding 4 separate users) not having personal email or mobile can be covered under a common email or mobile, but in general taxpayers should have their own unique email ID and Mobile registered with the Department. The taxpayer can enter any other person’s email or mobile number in addition as a Secondary Contact (without any restriction on the number of user accounts linked as a Secondary Contact). Using “Profile Settings -> My Profile” the taxpayer can select to include the Secondary Contact to also receive emails, alerts etc. Include the emails and SMS from the Income tax Department in the ‘safe list’ or ‘white list’ to prevent the communications from the Department from being blocked or rejected or sent to Spam folder. As a best practice, please update and authenticate the current contact and address details under “Profile Settings -> My Profile” after login to eFiling portal.

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Important facts to note before filing of quarterly TDS statement For Fin. Year 2013-14.

You are the esteemed stakeholder of CPC (TDS). As the due date of filing of quarterly TDS statement for second quarter of FY 2013-14 is approaching fast, you are advised to file TDS statement well before due date (15^th October for Non-Government deductors and 31^st October for Government deductors). You are requested to make note of the following facts before filing the quarterly TDS statement:

• Correct Reporting: Cancellation of TDS statement and deductee row is no longer permissible. Accordingly, it is very important to report correct and valid particulars (TAN of the deductor, Category (Government / Non-Government) of the deductor, PAN of the deductees and other particulars of deduction of tax) in the quarterly TDS statement
• Quote correct and valid lower rate TDS certificate in TDS statement wherever the TDS has been deducted at lower / zero rate on the basis of certificate issued by the Assessing Officer
• Last provisional receipt number to be quoted in regular TDS / TCS statements: While filing new regular (original) TDS statement, it is mandatory to quote the last accepted provisional receipt number of the regular quarterly TDS / TCS statement of any form type
• TDS statement cannot be filed without quoting any valid challan and deductee row
• Late filing fee, being statutory in nature, cannot be waived
• Download PAN Master from TRACES and use the same to file new statement to avoid quoting of incorrect and invalid PAN
• Validate PAN and name of fresh deductees from TRACES before quoting it in TDS statement
• Download TDS certificate (Form16A) from TRACES (http://www.tdscpc.gov.in) bearing unique TDS certificate number and issue to the taxpayers within due date
• File correction statements promptly in case of incomplete and incorrect reporting
• Download the justification report to know the details of TDS defaults, if any, on processing of TDS statement
• Do view your Dashboard regularly to know about your TDS performance
• Government deductors should obtain BIN (Book Identification Number) from their Accounts Officer (AIN holder) in time and quote the same correctly in TDS statement

CPC (TDS) is committed to provide best possible services to you.

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Online e-Filing Income Tax Return Procedure for Asstt. Year 2013-14

Income Tax Department has published the latest Online e-File Income Tax Return Procedure for Asstt. Year 2013-14.  In this new procedure Taxpayee can free download ITR-I to ITR-4S (Excel Base) to upload online XML. The complete latest procedure is as follows:

e-File Income Tax Return Online

Income Tax Return (ITR-1/ITR-4S) is available online. To avail this feature, Assessee should register, LOGIN and GO TO 'e-File' --> 'Prepare and Submit ITR online'. Fill the information and click SUBMIT.

Download Income Tax Return and Upload XML

To file an Income Tax Return electronically, you should download the Income Tax Return (ITR) Utility applicable, fill and generate an XML. This XML should be uploaded in the application post LOGIN.

You can also pre-fill Personal and Tax information, a new feature in this application.

You can import the details of the previous version into the new version of the utility using the "Import Previous Version " facility. Click on the "Import Previous Version" button and select the path where the previous version is available and click OK. The data is uploaded successfully.

Steps to Download ITR

1. On home page, GO TO 'Downloads' section and select applicable Income Tax Return Form of the desired Assessment Year OR Login to e-Filing application and GO TO 'Downloads'-->'Income Tax Return Forms' and select applicable Income Tax Return Form of the desired Assessment Year.
2. Download the excel utility of the Income Tax Return (ITR).
3. Fill the excel utility and Validate. (Please refer the "Steps to pre-fill in Income Tax Return" as mentioned below)
4. Generate an XML file and save in desired path/destination in your desktop/system.
5. LOGIN to e-Filing application and GO TO --> e-File --> Upload Return.
6. Select the Income Tax Return Form and the Assessment Year.
7. Browse and Select the XML file
8. Upload Digital Signature Certificate, if available and applicable.
9. Click 'SUBMIT'.
10. On successful upload, Acknowledgement details would be displayed. Click the link to view or generate a printout of Acknowledgement/ITR-V Form.

Steps to pre-fill in Income Tax Return

1. LOGIN to e-Filing application and GO TO 'Downloads' --> 'Income Tax Return Forms'
2. Download the excel utility of the selected Income Tax Return.
3. GO TO 'Downloads' --> 'Download Pre-fill XML' and download.
4. Open the excel utility.
5. Click the button 'Import Personal/Tax Details from XML'. An option to BROWSE a file is displayed.
6. Click on 'BROWSE' and select the path where the downloaded Pre-Fill XML file is stored.
7. Click the SUBMIT button
8. The Personal and Tax information is pre-filled in the respective fields of the excel utility (ITR). You can edit the Tax information, if needed.

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e-filing of Income Tax Returns under the New e-Filing Portal

Any individual or organization filing paper returns with the Income-Tax Department can take advantage of this facility. Direct e-Filing is at present available for ITR Forms 1, 2, 3, 4, 4S, 5 and 6.

Electronic filing of Income Tax Returns under the new e-Filing portal

• Download Pre-filled XML File - After Login Feature PAN Details at one place (Name, D.O.B, Status, Gender, Address) - After Login Feature
• Request for Intimation - Earlier there was no option to download if mail not received. (Submit request for resend print of Intimation to ITR/PAN Address/New Address or via Email) - After Login Feature
• For New Users, Resend Activation Link Feature - Helpful if link not received or mail deleted earlier. User Password can be changed now with Digital Signature Verification also.
• Feedback Option for User
• Register as Legal Heir User should register as a Legal Heir to do e-Filing on behalf of the deceased. This is a new feature provided for Individual user.
• Quick e File for ITR-1 (No need to download any utility, No requirement of any software. Just Fill and Submit like an Online Application Form)
• Mobile Services can be availed using the url https://incometaxindiaefiling.gov.in/mobile/.
• Forms to be authorized by CA with Digital Signature and XML to be uploaded in efiling portal. (3CA, 3CB, 3CD, 3CEB, FORM 29B) -
• Tax Professional (CA) is a new user on this portal (https://incometaxindiaefiling.gov.in/). They can e-File Income Tax Forms (other than Income Tax Returns).

Refund Re-issue request
Request for refund re-issue if the Income Tax Return has been processed. If a refund is determined and it fails to reach the taxpayer then a request can be raised.

File Rectification
Rectify e-filed Income Tax Returns online, if required, only after completion of Income Tax Return processing by CPC of the Income Tax department.

e-File Defective Income Tax Return u/s 139(9)
Taxpayer can e-File Income Tax Return against the Defective Notice issued to them u/s 139 (9) for AY 2011-12 and 2012-13.

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Special counters for filing returns of Income from 31st July,2013 to 5th August,2013

In view of extension of due date for filing of return of Income, special arrangements has been made for accepting the returns of income from 01.08.2013 to 05.08.2013 (including 3rd and 4th August, being Saturday and Sunday, respectively) to facilitate the tax payers to file their returns.
 

Income Tax Notification

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How to File Income Tax Return Online by e-Filing Procedure?

It is well known fact that tax payers are now required to file their Income-tax Return for the Financial Year 2012-13 relevant to the Assessment Year 2013-14. These Income-tax Returns in most cases have to be filed by 31st July, 2013.  All Taxpayee carefully read the new ammended ITR forms and applicable ITR form select to submit Annual Income Tax Return.   The most important point is that taxpayee who have PAN card may submit Annual Income Tax Return on or before 31st July, 2013.  In this regard  I want to share some important point to filing e-return with Income Tax Department.  But on the contrary most of Taxpayee not watch or read the post carefully. So due to this problem I will try at my level best to clarify & escape from Problem of online Income Tax Return Filing for Assessment year 2013-14.

Some are very easy task for layman even you don’t required any software. However you need to know about scrolling of computer mouse. There are lots of benefits to file income tax return online. No need to stand in long queues at the income tax department. No fear of lost any document, one can print and download whenever you wants after log-in your account.

Filing Income Tax Return:

1. Select appropriate type of Return Form
2. Download Return Preparation Software for selected Return Form.
3. Fill your return offline and generate a XML file.
4. Go to Income Tax Department website.
5. Register and create a user id/password
6. Login and click on relevant form on left panel and select “Submit Return”
7. Browse to select XML file and click on “Upload” button
   
8. On successful upload acknowledgment details would be displayed. Click on “Print” to generate printout of acknowledgment/ITR-V Form.
9. In case the return is digitally signed, on generation of “Acknowledgment” the Return Filing process gets completed. You may take a printout of the Acknowledgment for your record.
10. In case the return is not digitally signed, on successful uploading of e-Return, the ITR-V Form would be generated which needs to be printed by the tax payers. This is an acknowledgment cum verification form. The tax payer has to fill-up the verification part and verify the same.
11. Update: Now you have to send ITR-V to the “Income Tax Department , CPC, Post Box No – 1, Electronic City Post Office, Bangalore – 560100, Karnataka”. They’ll send the acknowledgment receipt at your email address.
12. For any assistance in filing the paper copy of the return please contact by comment form given below.

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e-Filing of Return is mandatory for Income above 5 Lacs.

A senior Finance Ministry officially said on Last Tuesday from Asstt. Year 2013-14 e-filing of Income Tax Return is mandatory to taxpayer whose annual taxable income above Rs. 500000/-.  Now in current year i.e. Asstt. Year 2012-13 e-filing is is mandatory to those taxpayee whose income more than 10 lakhs.  Besides, the Finance Ministry is also making provisions for e-filing of Wealth Tax returns.

“Income tax returns for the group above Rs 5 lakh, all such returns will be e-filed. This is a move towards using technology so that the interface between Assessing Officer and assessee is minimized,” Revenue Secretary Sumit Bose said at a Ficci event here.

The government had last year introduced the system of e-filing of Income tax returns for assessees with annual income of Rs 10 lakh and above.

Section 14 of the Wealth-tax Act provides for furnishing of return of net wealth as on the valuation date in the prescribed form.

At present, certain documents and reports are required to be furnished along with the return of net wealth under the provisions of Wealth-tax Act read with the provisions of Wealth-tax Rules.

Sections 139C and 139D of the I-T Act contain provisions for facilitating filing of return of income in electronic form by certain class of income-tax assessees.

“In order to facilitate electronic filing of annexure- less return of net wealth, it is proposed to insert new sections 14A and 14B in the Wealth-tax Act on similar lines… The amendments will take effect from June 1, 2013,” said the Memorandum to the Finance Bill 2013.

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New Website for e-Filing of ITR by Income Tax Department

The New Website for E-Filing of Income Tax Return has launched by Income Tax Department.  The new website of e-filing of Income Tax Return contains too many new features.  Now, Tax Professionals (C.A.) can upload their forms electronically like as Form 3CA, Form 3CB, Form 3CD, Form 3CEB and Form 29B. Taxpayers can option for Higher Security,  alerts, reminders, notification, download .xml file and specifically online submission of ITR-1 return form.  Earlier in old website there was only facility to download the excel file and generate/enter data offline and upload xml file, but now data can be entered online and there is no need to enter TDS/Tax details manually.

New website for e-Filing of Income Tax Return with new amendments and easy steps. To visit New Webiste of e-Filing of ITR Click Here.

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Income Tax Limitations and Benefits

LIMITATION OF BENEFITS

  1.  Benefits of this Convention shall not be available to a resident of a Contracting State, or with respect to any transaction undertaken by such a resident, if the main purpose or one of the main purposes of the creation or existence of such a resident or of the transaction undertaken by him, was to obtain benefits under this Convention.

  2.  Where by reason of this Article a resident of a Contracting State is denied the benefits of this Convention in the other Contracting State, the competent authority of that other Contracting State shall notify the competent authority of the first-mentioned Contracting State."

ARTICLE X

1.  Each of the Contracting States shall notify the other, through diplomatic channels, of the completion of the procedures required by its law for the bringing into force of this Protocol. This Protocol shall enter into force on the date of the later of these notifications and shall thereupon have effect:

(a)  in both States in the case of taxes withheld at source, in respect of amounts paid on or after the date this Protocol enters into force;

(b)  in India, in respect of taxes levied for fiscal years beginning on or after the date this Protocol enters into force;

 (c)  in the United Kingdom:

(i)  in respect of income tax and capital gains tax, for any year of assessment beginning on or after 6th April in the calendar year next following that in which this Protocol enters into force;

(ii)  in respect of corporation tax, for any financial year beginning on or after 1st April in the calendar year next following that in which this Protocol enters into force;

(iii)  in respect of petroleum revenue tax, for any chargeable period beginning on or after 1st January in the calendar year next following that in which this Protocol enters into force.

 2.  Notwithstanding the provisions of paragraph 1 of this Article, the provisions of Articles VI, VII & VIII of this Protocol shall apply in respect of any matter referred to in these Articles even if such matters pre-date the entry into force of this Protocol or the effective date of any of its provisions.

In witness whereof the undersigned, duly authorised thereto by their respective Governments, have signed this Protocol.

Done on this 30th day of October 2012, in London on two original copies each in the English and Hindi languages, both texts being equally authentic. In case of divergence between the two texts, the English text shall be the operative one.

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ITR e-Filing helpline open for any query or problem.

Income tax return e-filing department has updated the helpline numbers for any query or problem regarding e-filing of income tax return.

ITR e-filing Query Helpline:
Any query relating to e-filing of Income Tax Return, please call 18001801961 or 08026500025.

ITR e-filing Status Helpline:
For any query regarding status of e-filed return and ITR-V please call 18004252229.

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Get Tax Benefit on jointly purchase property.

Is it necessary to purchase the property jointly.

Exemption is admissible even if the property is purchased individually:
It is not at all necessary to purchase a joint property to claim an exemption from LTCG. By purchasing two separate property individually also, one can have an exemption from LTCG.

Time Limit to purchase the Property:
Exemption u/s 54 (or u/s 54F,if the asset sold is not a residential house property) is available if the Assessee invests amount of LTCG for purchase of another residental house property.

• within one year before or two years after the date of transfer, or
• constructs a residential house within a period of three years from the date of the transfer of the original house.

Scheme to Deposit:
Although under section 54/54F,the assesee is allowed 2 years to purchase the house property,but the capital gain on transfer of the origional assets is taxable in the previous year in which the transfer took place. The return of income of the previous year is to be filed before the specified date Hence , the assessee will have to take a decision for the purchase/ construction of the house property before the date of furnishing of the return otherwise the capital gain would be taxable.

To avoid the above situation, the income Tax Act has specified an alternative in the form of a Deposit under the Capital Gain Deposit Accounts Scheme-1988 (CGDAS).

The amount of the capital gain, which is not utilized by the assessee for purchase or constructions of the new house before the date of furnishing the return of income, should be deposited by him under the Capital Gain Account Scheme, before the DUE DATE of furnishing the return. After deposits, the amount already utilized by the assessee for purchase/constructions of the new house along with the amount so deposited, shall be eligible for exemption under section 54/54F in the year in which LTCG has arisen.

The investment in the PLAIN FIXED DEPOSITS may not enable you to claim an exemption. Ensure to keep the amount in the CGDAS.

However, one can keep the amount in the plain fixed deposits after the sale of the property and can divert it in the CGDAS before the due date of filling the return of income.

It may be noted that under CGDAS also, two type of accounts can be opened as under-

• Deposit Account A- This is a saving Account.
• Deposit Account B - This is a term Deposit Account

Investment in Capital Gain Bonds:
Exemption can be claimed either by investing in the Bonds u/s. 54EC or u/s. 54 by investing in the house property. Assessee have the choice.

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10 Easy Steps to e-file Annual Income Tax Return for Asstt. Year 2012-13.

Every Income Tax payee should have save time by e-filing of income tax return. This job is completed within 15 minutes and it is very easy. Regarding e-filing of Annual Income Tax Return tax payee well know about its procedure that how to process for e-filing of Income Tax Return. This process is very smooth and easy. These processes are save your time, right price and take other benefits. The tax payee should take place the following 10 steps regarding this procedure:

STEP 1

Go to the website of directorate of income tax, India, and register yourself, that is if you are not registered already. As you register, you need to fill in your PAN number and other details in order to set your login and password.

STEP 2

Once you are done with registration, log out and log in again with your PAN number as user ID and the new password you have set earlier. Click on e-filing A.Y. 2012-13 on the left side and download the e-filing form for INDIVIDUAL, HUF (HUF stands for Hindu undivided family)

STEP 3

The form comes in a ZIP file. Save it to your desktop and extract the Excel file from it to a new folder. Open the excel file and enable macros. Mind you, you have to enable macros in order to complete the process.

STEP 4

Fill in details like Name, Address, City, State, Pin Code in the sheet for INCOME DETAILS; fill in your PAN number wherever required and then fill in details of your income, investments and tax paid as provided to you in the Form 16 as per the instructions on the sheet. Then click on the VALIDATE button to check. If the details are correct. It will show the sheet is ok. (That is if no errors are found).

STEP 5

The next sheet of the file is TDS. Fill in the details for No 23 only if you have income only from salary. If you have income other than salary, fill in details for No 24 also. Fill in details of TAN number, name of company, address, city, state, pin code as given in form 16.

STEP 6

Fill in details of income charged under salaries, deductions from Chapter VI-A, tax payable and tax deducted. All these information is found on your Form 16. Click on VALIDATE button to check for correctness.

STEP 7

Next sheet is taxes paid and verification. Fill in details of name, father’s name, place, date and PAN number under the VERIFICATION section shown in RED. Click validate once again. If all the three sheets are shown OK on validation, you are ready to generate an XML file of the details.

STEP 8

Click on Generate XML and it will ask you to save the file. Once saved, go back to the website and log in (if you are logged out) with your user name and password. On the left side, click on submit return with 2010-11 as assessment year. Upload your generated XML to the site. Your e-filing is done.

STEP 9

It sends you a copy of acknowledgment to your email ID and also allows you to download the acknowledgment by clicking on blue link. The acknowledgment again comes in a ZIP file. Extract the file, take a printout of the PDF file and sign it manually.

STEP 10

Send a signed Acknowledgment to Income Tax Department address shown at the bottom of the PDF file by ORDINARY POST only. You will get a confirmation from IT department within one week. If it’s delayed, you can check out with CPC, Bangalore at 080-43456700 between 9:30 AM to 6 PM between Monday to Friday.

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Important points while e-Filing of Income Tax Return.

Filing of Income Tax Returns could be quite a task for many, owing to plethora of paperwork and lengthy procedures. In this era of technology, no longer is this going to be a daunting task. You could now file your Income Tax Returns online without having to spend hours at the Income Tax office, or pay exorbitant fees to a chartered accountant. Read on to know about the hassle free process of “E-filing” of returns.

What is E-filing?

E-filing is a process of filing your returns the electronic way using the help of the internet. Various web portals have been designed and designated to help you file returns. So, without being bogged down by lengthy procedures, you could now use the internet to file your returns in the comfort of your home or office, at any time of the day.

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Where do you E-File your Returns?

The Income Tax of India website lets tax payers of all kinds, to file their returns online, free of cost. The steps involved are explained in the main home page of the website. This free version however is not very user friendly for novice users. For someone not familiar with ITR-1, ITR 2 etc, understanding and using the excel based utility could be quite difficult. Also, the site has no provision for online help and could get slow at times.

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Before you begin, keep all relevant information such as your Form 16, your investment details, your income from other sources etc., ready at hand.

Step 1: You would need to register with the portal through which you desire to file your returns. Most tax return filing sites are user friendly and help you through the process in a step by step manner. You can achieve the same task by downloading Excel utility from the It department website. However it may be difficult to use.

Step 2: Details such as name, address, PAN, total salary, deductions etc are collected in a digital format.

Step 3: An ITR XML file is generated which is your electronic income tax return. Do not try to make sense of it as it’s a bit technical.

*Step 4: You would need to upload this ITR XML file on the Income Tax website. For doing this, an account needs to be created in the Income Tax website using your Permanent Account Number. Once uploaded, an acknowledgement receipt called ITR Form-V would be generated. This needs to be signed and sent to “Income Tax Department – CPC, Post Box No.1, Electronic City Post Office, Bangalore – 560100, Karnataka” within 120 days of e-filing.

Step 5: You would receive a confirmation from the IT Department, acknowledging the receipt of ITR-V. This is your final acknowledgement that concludes your e-tax filing.

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Whose income exceed Rs. 10.00 Lakhs e-Filing of Income Tax Return is mandatory from Assessment year 2012-13 and onwards.

CBDT has issued a press released vide No.NO. 402/92/2006-MC (12 OF 2012) dated 02.07.2012, e-filing of Income Tax Return is mandatory and compulsory from Assessment year 2012-13 and onwards for those an individual or a HUF assessee whose income exceed Rs. 10.00 Lakhs. As you know filing of returns electronically under digital signatures is already mandatory for any company required to furnish the return in Form ITR-6 or a firm required to furnish the return in Form ITR-5 or an individual or HUF required to furnish the return in Form ITR-4 and to whom provisions of section 44AB are applicable. See the below press release of Income Tax Department about mandatory e-Filing of Income Tax Return.

MANDATORY e-FILING OF INCOME TAX RETURN

PRESS RELEASE [NO. 402/92/2006-MC (12 OF 2012)], DATED 2-7-2012

CBDT has issued notification S.O. 626(E), dated 28th March 2012 vide which e-Filing has been made compulsory for Assessment Year 2012-13 onwards for :
• an individual or a Hindu undivided family, if his or its total income, or the total income in respect of which he is or it is assessable under the Act during the previous year, exceeds ten lakh rupees; and
• an individual or a Hindu Undivided Family (HUF), being a resident, having assets (including financial interest in any entity) located outside India or signing authority in any account located outside India and required to furnish the return in Form ITR-2 or ITR-3 or ITR-4.
However, digital signature will not be mandatory for these taxpayers and they can also transmit the data in the return electronically and thereafter submit the verification of the return in Form ITR-V.

2. Filing of returns electronically under digital signatures is already mandatory for any company required to furnish the return in Form ITR-6 or a firm required to furnish the return in Form ITR-5 or an individual or HUF required to furnish the return in Form ITR-4 and to whom provisions of section 44AB are applicable.

3. The Income Tax Department has received a record number of 1.64 crore income tax returns electronically in the year 2011-12. E-filing is an easy, fast and secure method of filing of income tax return. The electronically filed returns are processed at the Centralized Processing Centre, Bengaluru. The processing for e-filed return is faster and taxpayers get their refunds, if due, quickly. The Department also provides some value added services like tracking of refunds, viewing tax credit status (Form 26AS), e-mail and SMS alerts regarding status of processing and refunds to taxpayers who e-file their returns.

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