e-filing of income tax

e-Filing of Income Tax Returns

byRaushan Kumar Ray

tambakad & goil Chartered Accountants

Policy on Taxation• Chanakya's Artha Shastra: "collect taxes from citizens

the way a Bee collects Honey from the flowers - quietly without inflicting pain". http://www.rediff.com/money/2008/feb/27inter.htm

• Policy Includes 1. Adequacy, 2.Broad Basing, 3.Comparability, 4.Convenience, 5.Earmarking,6.Effeciency.7.Equity, 8.Neutrality, 9.Predictability, 10. Restricted Exemption, 11. Simplicity.

http://www.businessdictionary.com/definition/taxation-principles.html

e-Filing of IT return by Raushan Kumar Ray

Friday, April 7, 2023 2

The Laws• Ignorance is not bliss – know the law

• Income tax Act 1961 as modified by Finance Act 2013

• Visit http://incometaxindia.gov.in

• Click on Tax laws and Rules - Income tax Act 1961





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Definitions

• "assessment year" means the period of twelve months commencing on the 1st day of April every year [S.2(9)] (e.g. A.Y. 2013-14)

• Previous Year "previous year" means the financial year immediately preceding the assessment year [S.3] (e.g. P.Y. 2012-13)

• Income: defined in section 2(24) of IT Act.• PAN – permanent account no. (S.139A)



Computation of total income

• For any “Assessment Year” the taxable income comprises the following types of income– Salaries– Income from house property– Capital gains– Business or Profession– Income from other sources



Excluded income



Excluded income – examples (S.10)

• Agricultural income (Clause 1) • Receipt by an individual as a member of a HUF out of

the income of the family or in case of impartible estate out of the income of the estate belonging to the family. (Claus 2)

• Share of profit of a partner in a partnership firm, separately assessed to tax (Claus 2A)

• Any amount received or receivable from the Central Government or a State Government or a Local Authority by an individual or his legal heir by way of compensation on account of any disaster. (Clause 10BC)



Amendment Relating to Income Exempt for TAX• Sec 10 (10D) :-Clause (d) has been inserted in section 10(10D) so

as to provide that the exemption for insurance policies issued on or after 1.4.2012 would only be available for policies where the premium payable for any of the years during the term of the policy does not exceed 10% of the actual capital sum assured (as against existing 20%)

In other words, if the premium payable during any previous year for a policy issued on or after 1.4.2012 exceeds 10% of the actual capital sum assured, the entire amount received under such policy shall be taxable.

• Sec 10 (23BBH):-Any income of the Prasar Bharati (Broadcasting Corporation of India) established under sub-section (1) of section 3

of the Prasar Bharati (Broadcasting Corporation of India) Act, 1990 shall be exempt.



Continued Sec 10

• Sec 10 (48) :-A new clause (48) has been inserted in section 10 of the Income-tax Act to provide for exemption in respect of any income of a foreign company received in India in Indian currency on account of sale of crude oil to any person in India subject to the following conditions being satisfied:

(i) The receipt of money is under an agreement or an arrangement which is either entered into by the Central

Government or approved by it.

(ii) The foreign company, and the arrangement or agreement has been notified by the Central Government having regard to the national interest in this behalf.

(iii) The receipt of the money is the only activity carried out by the foreign company in India.

Friday, April 7, 2023 e-Filing of IT return by Raushan Kumar Ray

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Who should file an IT return• S.139 – Every person (a)being a company or a firm or (b) being

a person other than a company[or a firm], if his total income or the total income of any other person in respect of which he is assessable under this Act during the previous year exceeded the maximum amount which is not chargeable to income-tax,

• Filing of IT return is obligatory if income, before any deduction under section chapter VI exceeds– For any individual (resident or non-resident), every

HUF/AOP/BOI/artificial Juridical person during F.Y. 2012-13 – Rs 200,000

– For resident senior citizen (age between 60 and 80) at any time during F.Y. 2012-13 - Rs.250,000

– For resident senior citizen (age above 80 years) at any time during financial year 2012-13 -Rs.500,000



Compulsory filing of ITR

• In relation to assets located outside India: It is mandatory to file a return of income where a person, being a resident other than not ordinarily resident in India and who during the previous year has any asset (including any financial interest in any entity) located outside India or signed authority in any account located outside India.

• If the taxable income is over Rs. 5 Lakes in the F.Y. 2012-13 (CBDT notified on 6 –May-2013)


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Download Return Form


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ITR Form Description


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ITR Form Name Individual HUF

ITR 1 Having income from Salary and Interest

N/A

ITR 2 Not having income from business or profession.

Not having income from business or profession.

ITR 3 Being partners in firms and not carrying out business or profession.

Being partners in firms and not carrying out business or profession.

ITR 4 Having income from proprietary business or profession.

Having income from proprietary business or profession.

ITR 4S (Sugam)

Having income from presumptive business.

Having income from presumptive business

Income tax return

• Part A: General

• Part B: TI

• Schedules– Salaries– HP, house property– Capital Gains– OS, other sources, etc.



Amendment relating to form Sahaj(ITR-1) [Notification No. 34 /2013/ F.No.142/5/2013-TPL]

1.The person having loss under the head other sources cannot file return of income in Form SAHAJ (ITR 1). Further following persons cannot file return of income in form SAHAJ (ITR 1) and Form SUGAM (ITR 4S):

i. Resident other than not ordinarily resident having asset located outside India or having signing authority in any account located outside India.

ii. Person who has claimed tax treaty benefit under Section 90 or 90A of the Act or has availed the relief from double taxation under Section 91 of the Act.

iii. Person who does not have income chargeable to tax exceeding INR 5,000.

2. In case of refund, it was mandatory till last year to mention the bank account number and the MICR code. The following amendments have now been made to ITR 1:

• i. It is mandatory to submit bank details in all cases (irrespective of refund or not).

• ii. Instead of MICR code, the form now requires quoting of IFSC Code. IFSC Code is an 11 character code for identifying bank branches participating in online fund transfers. This code is unique for each bank branch.



Amendment relating to form (ITR-2) [Notification No. 34 /2013/ F.No.142/5/2013-TPL]

1. In the Schedule on Capital Gains, the following amendments have been made:

i. With respect to non-residents earning any short term capital gain on transfer of shares/units, the capital gain has to be shown separately for Securities Transaction Tax (STT) paid shares/units and otherwise.

ii. In the schedule on Short Term Capital Gains, the references of sections relating to Long Term Gains have been removed (Sections 54, 54EC, 54D and 54F of the Act).

iii. Reference to investment in equity shares of an eligible company to obtain relief from long term capital gains‟ tax (Section 54GB of the Act) has been included. The PAN of the Company in which the taxpayer invests to avail benefit under Section 54GB of the Act is also required to be quoted.

2. New schedule inserted seeking „Details of Income accruing or arising outside India‟. The said schedule requires details like country code, taxpayer identification number; income earned and identified separately for all five sources of income heads, bifurcation of total income value where the tax treaty is applicable and where it is not applicable.



Changes under ITR-2 Continued3. Schedule for „Details of taxes paid outside India‟ amended to include relevant

article of the tax treaty, tax relief bifurcated into Sections 90/90A of the Act and Section 91 of the Act, total taxes bifurcated where tax treaty is applicable and where it is not applicable

4. In the schedule „Details of Foreign Assets‟ the following amendments have been made seeking additional information:

i. „Country Name‟ where the taxpayer is providing details regarding foreign bank accounts, financial interest in an entity, immovable property, any other asset in nature of investment.

ii. „Account Number‟ where the taxpayer is providing details of accounts in which he has signing authority

iii. In case the taxpayer is a trustee in a trust, created under the laws of a country outside India, the taxpayer is required to provide details such as country name and code, name and address of the trust, other trustees, settler and beneficiaries.



1. A 1. A Schedule AL Schedule AL covering the details of personal assets and liabilities in India covering the details of personal assets and liabilities in India has been included in ITRs 3 and 4 for financial year 2012-13. has been included in ITRs 3 and 4 for financial year 2012-13.

2. The taxpayers having total income in excess of INR 2.5 million would be 2. The taxpayers having total income in excess of INR 2.5 million would be covered by this reporting requirement. In respect of this an exhaustive list of covered by this reporting requirement. In respect of this an exhaustive list of assets comprising land, building, bank (including all deposits), shares and assets comprising land, building, bank (including all deposits), shares and securities, insurance policies, loans and advances given cash in hand, securities, insurance policies, loans and advances given cash in hand, jewelry, bullion , archaeological collections, drawings, painting, sculpture or jewelry, bullion , archaeological collections, drawings, painting, sculpture or any work of art, vehicles, yachts, boats and aircrafts is provided. any work of art, vehicles, yachts, boats and aircrafts is provided.

3. Further, the value has to be reported at cost. The taxpayers can report any 3. Further, the value has to be reported at cost. The taxpayers can report any liability against these assets in the schedule. liability against these assets in the schedule.



Amendment relating to form (ITR-3 and ITR-4) [Notification No. 34 /2013/ F.No.142/5/2013-TPL

Important points to be considered while filing income tax returns for the AY 2013-14:

1. Form SAHAJ / SUGAM not to be used in the follow below circumstances

(a) Resident other than non-ordinarily resident in India having any asset (including financial interest in any entity) located outside India.

(b) Resident other than non-ordinarily resident in India has signing authority in any account located outside India.

(c) Individuals having loss under the head Income from Other sources.

(d) Individuals claiming double taxation relief under section 90/90A/91.

(e) Individuals having income not chargeable to tax exceeding Rs 5000. It means if any individual have any exempt income like dividend or interest more than Rs 5000, than he shall not file the above forms, rather he has to file form 2/4.

2. Audit Report as per section 115AB or 92E or 115JB or 44AB of the income tax act 1961 is to be furnished electronically with the income tax return.

3. New “schedule AL” has been attached to the ITR 3 and ITR 4 which is now to be filled up relating to the assets and liabilities of an individual or HUF if income exceeds Rs.25 lakhs.


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Continued…

4. E- Filing of return is compulsory for income more than Rs.5 lakhs -----All persons other than companies and persons filing Form No 7 like trusts are required to furnish income tax return electronically under digital signature or transmitting the data in return electronically and thereafter submitting ITR V, if their net taxable income after deductions exceeds Rs.5 lakhs. It means if taxable income for all persons other than companies and persons filing form no 7 is less than 5 lakhs, than no income tax return is to be filed subject to some fulfillment of certain conditions

5. All those tax payers who are claiming relief of tax in terms of section 90 or 90A or 91 of the Income-tax Act and are filing their Income-tax Return for the AY 2013-14 and subsequent years will now be required to furnish their Income-tax Return electronically under Digital Signature or transmitting the data in the Return electronically and thereafter submitting the verification of the Return in Form ITR V.


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Continued…

6. Last year individuals and Hindu Undivided Families having total income in excess of Rs. 10 lakhs were required to furnish the Income-tax Return electronically under Digital Signature or transmitting the data in the Return electronically and thereafter submitting the verification of the Return in Form ITR V. Now as a result of the amendment not merely individuals or Hindu Undivided Families but all persons other than companies and persons filing Form No. 7 (like Educational Institutions, Trusts etc.) if their income exceeds Rs.5 lakhs would be required to furnish the Return for the Assessment Year 2013-14 electronically under Digital Signature or transmitting the data in the Return electronically and thereafter submitting ITR V.


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Deductions from IT


Income Tax Return Due Date A.Y. 2013-14

Sl.No. Particular Due Date

1. For such corporate assessee who is required to furnish a report u/s 92E of the Income tax Act 1961.

30-Nov-2013

2. For all other corporate assessee 30-Sep-2013

3. For non corporate assessee (Like Partnership Firm , Prop Firm) Whose accounts are required to be audited

(When turnover is more than 100 Laks in case of business and Rs. 25 Laks in case of profession-Sec 44 AB and And business where disclosed profit is less than 8% of turnover-Sec 44AD)

30-Sep-2013

4. For Working partners of Partnership Firm Covered under Sl. No. 3 above 30-Sep-2013

5 For any other assessee like Salaried income , Person having income from House Property, Interest income , Business Income Where accounts are not required to be audited.

31-Jul-2013


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Advance Tax

As per S. 209 and S.211 b of the IT Act

For the Assessee Other than Company• 30% On or before 15th September• 60% On or before 15th December• 100% On or before 15th March

In Case of Companies• 15 % On or before 15th June.• 45% on or before 15th September• 75% On or before 15th December• 100% On or before 15th March



Self Assessment Tax

• Section 140A: the assessee shall be liable to pay such tax together with interest payable under any provision of this Act ,for any delay in furnishing the return or any default or delay in payment of advance tax, before furnishing the return and the return shall be accompanied by proof of payment of such tax and interest.

• Related Judgments

• SUDHIR SAREEN v. COMMISSIONER OF INCOME-TAX & ANR.• http://education.dewsoftoverseas.com/vakilno4/incometaxact/s140a.htm



http://education.dewsoftoverseas.com/judgements/incometax/2000-158ctr0199del.htm

Interest payable

• For delay in filing IT return: 1% per month (S.234A)

Eg-1: An Individual files it’s return on 10th Oct, Suppose tax payable by the Individual is Ra. 50,000.

Calculation: Tax=Rs. 50,000

Delay = 3 Months (I.e. Aug, Sep, Oct)

Interest = Rs. 50,000 * 3 Month* 1%/ months.

=Rs. 1500



Interest Payable

• Interest U/S 234 B: Defauslt in payment of Advance Tax

Eg-2: Mr A has tax liability or Rs. 1,10,000, TDS = Rs. 10,000

Advance Tax Payment Details

15th Sep = Rs. 10,000

15th Dec= Rs. 20,000

15Th Mar= Rs. 30,000

Total AT = 60,000

Calculation:

Advance Tax = Rs. 1,00,000 (I.e.Rs.1,10,000- Rs. 10,000)

AT to be Paid= Rs. 90,000 ( 90% of Rs. 100,000)

Short fall =Rs. 30,000 ( Rs. 90,000-Rs. 60,000)

No of Month Int Charged= 4 Month ( Apr to Jul)

Interest U/S 234 B = Rs. 1200 ( Rs. 30,000* 1% p.m. * 4 month)


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Interest payable• Interest u/s 234 C: Deferment of advance tax

Eg No. 2 above.


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Due Date

Amount Payable

Amount Paid Difference Interest Charged

15th Sep Rs. 30,000(i.e. 30% of Rs. 100,000)

Rs 10,000 Rs. 20,000 Rs.600(Rs.20,000*1% p.m.*3 M)

15th Dec Rs. 60,000(I,e, 60% of Rs. 100,000)

Rs. 30,000(i.e. Rs. 10,000+Rs.20,000)

Rs. 30,000 Rs.900(Rs.30,000*1% p.m.*3 M )

15th Mar Rs. 100,000(I,e, 100%)

Rs. 60,000 (Rs. 10,000+Rs.20,000+Rs.30,000)

Rs. 40,000 Rs.400( Rs.40,000*1% p.m.*1 M.)

Procedure for e-filing• Open the web site http://incometaxindia.gov.in• https://incometaxindiaefiling.gov.in• Click login and register as new user• Download return preparation software based on Excel• Fill the form• Verify• Generate XML file• Upload XML file• Return receipt received by email duly verified.



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• View Tax Credit Statement (Form 26AS) through e-filing web site

• After login go to menu option

• View Tax credit statement (Form 26AS)



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e-Filing 2013-14


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Submission:-Provide information and attach XML file

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After return is uploaded

• Acknowledgment will be generated by computer / and will arrive by email.

• Please sign and dispatch it within 120 days to the Central Processing Centre duly verified by post



Benefits of e-filing

• Downloading form may be done from home

• Filing Excel form is simpler than manual filing as computations are done by computer. Accuracy is ensured.

• Returns may be submitted 24/7 and queuing in IT office will be avoided

• Processing of return can be monitored



Thanks To

All Of You For Your Attention


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e-filing of income tax

Education

raushan kumar

raushan kumar

raushan kumar

raushan kumar

raushan kumar

hindu undivided

income exceeds

tax return