e-Filing of ReturnsAn Overview of the Process

of e-Filing of Returns

What is e-Filing

• The process of electronically filing Income tax returns through the internet is known as e-Filing.

• It is mandatory for Companies and Firms requiring statutory audit u/s 44AB to submit the Income tax returns electronically from AY 2007-08 onwards.– Any Company/Firm requiring statutory audit u/s 44AB return submitted

without a e-Filing receipt will not be accepted.

• e-filing is possible with or without digital signature. • Digital signature is mandatory for Companies from AY2010-11

onwards.

Relevant Notifications, Circulars & Instructions 2006-07 & 2007-08

• New forms ITR1 to ITR 8 for AY 2007-2008 notified on 14th May’07.

• Circular no. 3/2007 issued on 25th May’07 regarding acceptance of paper returns for companies and firms covered by 44AB under certain circumstances.

• Circular no 9/2006 - Exhaustive explanation of the entire scheme of e-Filing for Public.

• Circular No 12/ 2006 – E-filing not mandatory for Representative Assessee.

• Instruction no. 7 dt 10/10/2006 - Exhaustive explanation & other guidelines for department of the entire scheme of e-Filing for Public.

• Vide Notification No. 128/2006, dated 1-6-2006 S.O. 848 (E), Form 2F was notified &Vide NOTIFICATION NO. 189/2006, dated 24-7-2006 Forms 1, 2, 3, 3B were notified.

Relevant Notifications, Circulars & Instructions Relevant Notifications, Circulars & Instructions Historical PerspectiveHistorical Perspective

• Vide Notification No. 253 of 2004, dated 30th Sep., 2004 S.O.1073(E), Electronic Furnishing of Return of Income Scheme, 2004 was notified for e-Filing of returns:

• An eligible person may, at his option, furnish his return of income which he is required to furnish under sub-section (1) of section 139 of the Act for the assessment year 2004-05 and any subsequent assessment year, to an e-Return intermediary.

• Digital signature, e-return, e-return intermediary were defined in this scheme

Types of e-Filing

• There are three ways to file returns electronically• Option 1: Use digital signature in which case no paper return is

required to be submitted• Option 2: File without digital signature in which case ITR-V form is to

submitted to CPC Bengaluru within 120 days of efiling. This is a single page receipt cum verification form.

• Option 3: File through an e-return intermediary who would do e-Filing and also assist the Assessee file the ITR V Form .

New IT Returns – Annexure-less FormsFor Individuals, HUF

Select appropriate Income Tax Return (ITR) Preparation Software

ITR-1 ITR-2 ITR-3 ITR-4 ITR-4S

Individual Individual & HUF

1 Income from Salary/Pension ▪ ▪ ▪ ▪ ▪

2Income from Other Sources (only Interest income or Family Pension)

▪ ▪ ▪ ▪ ▪

3Income/Loss from Other Sources

▪ ▪ ▪ ▪

4Income/Loss from House Property

▪ ▪ ▪ ▪

5Capital Gains/Loss on sale of investments/property

▪ ▪ ▪

6 Partner in a partnership Firm ▪ ▪

7 Income from Proprietary Business/Profession

▪ ▪

8 Income from presumptive Business ▪

New IT Returns – Annexure-less Forms

For Association of Persons (AoP), Body of Individuals (BoI), Local Authority, Companies, Trusts, Fringe Benefit Tax (FBT) Return

Select appropriate Income Tax Return (ITR) Preparation Software

ITR-5 ITR-6 ITR-7 ITR-8

Firms, AoP, BoI, LA,LLP

Companies Trusts Only FBT

1 Income/Loss from Other Sources ▪ ▪ ▪

2 Income/Loss from House Property ▪ ▪ ▪

3 Capital Gains/Loss on sale of investments/property ▪ ▪ ▪

4 Income/Loss from Business▪ ▪ ▪

5 Fringe Benefit Tax▪ ▪ ▪ ▪

Please noteITR-7 will not be available for e-Filing.ITR-8 is discontinued for e-Filing from AY2010-11 onwards, still continued for AY2007-08,2008-09,2009-10.

Change in Procedure of e-Filing

Type Change

For Digitally signed Returns

No change

Paper Returns – Two step Procedure

After uploading data – Assessee need to submit verification Form Called ITR-V to CPC Bengaluru. Paper Returns – through

e -intermediaries

e-Filing Process – At a glance

• Select appropriate type of Return Form • Download Return Preparation Software for selected Return Form. • Fill your return offline and generate a XML file. • Register and create a user id/password • Login and click on relevant form on left panel and select "Submit

Return" • Browse to select XML file and click on "Upload" button • On successful upload acknowledgement details would be displayed.

Click on "Print" to generate printout of acknowledgement/ITR-V Form.

e-Filing Process – At a glance

• Incase the return is digitally signed, on generation of "Acknowledgement" the Return Filing process gets completed. You may take a printout of the Acknowledgement for your record.

• Incase 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 acknowledgement cum verification form (ITR-V). A duly signed ITR-V form should be submitted to CPC using Ordinary Post or Speed Post within 120 days of transmitting the data electronically. This completes the Return filing process for non-digitally signed Returns.

Thank you