filing of income tax return

8/3/2019 Filing of Income Tax Return

http://slidepdf.com/reader/full/filing-of-income-tax-return 1/23

Below is the Chart on e lectronic filing of Income Tax Return. Click on the respective topic for more details.

Choosing ITR Form for an Assessee This page helps to identify the forms for an assessee.

First identify the status of Assessee. If you are not able to Identify the right status, visit Identify Status through PAN page..

After Identifying the Status, Select the Form referring the table below:

Sl No Status of Assessee ITR Form

1. Individuals ITR-1, ITR-2, ITR-3 or ITR-4

2. Hindu Undivided Family ITR-1, ITR-2, ITR-3 or ITR-4

3. Firms ITR-5

4. Company ITR-6

5. Trusts ITR-7

6. Association of Person ITR-5

7. Body Of Individuals ITR-5

Filing ITR with Digital Signature**



Below is the step by s tep procedure of filing Income Tax Return with your digital Signature:

1. Prepare your Income Tax Return and Generate XML.2. Save XML file in your favourite location [Say Desktop].3. Connect your digital Signature Certificate - USB Token to your System.4. If not registered, Register Assessee PAN at http://incometaxindiaefiling.gov.in 5. Login to Income Tax eFiling website .6. Click on" Submit your Return" for Respective ITR Form..7. Select the XML file saved on your computer.8. Click on "Digitally Sign" button and select respective digital signature from USB Token.9. Click on "Submit" button". It will verify the return and signature, then will show ITR-V with Acknowledgement

number.10. Take the printout of ITR-V and keep it for future reference along with Paper printout of complete return form.

**Digital Signature should be a valid certificate and should be on the name of "Authorised Signatory" of the Return.

Filing ITR without Digital Signature**

Below is the step by s tep procedure of filing Income Tax Return without d igital Signature:

1. Prepare your Income Tax Return and Generate XML.2. Save XML file in your favourite location [Say Desktop].3. If not registered, Register Assessee PAN at http://incometaxindiaefiling.gov.in

4. Login to Income Tax eFiling website .5. Click on" Submit your Return" for Respective ITR Form..6. Select the XML file saved on your computer.7. Click on "Submit" button". It will verify the return and then, will show ITR-V with Acknowledgement number.8. Take the printout of ITR-V in 2 Copies.9. Sign it through Authorised Signatory.10. Submit ITR-V [2 Copies] to Local Income Tax Office and collect a copy along with Receipt Stamp.

**In this process only ITR-V should be submitted in Hard-Copy [Paper Return] to IT office. No ITR Form Print out to beenclosed.

H ard Copy Filing ITR [Without eReturn]**

Below is the step by step procedure of filing Income Tax Return manually:

1. Prepare your Income Tax Return and Generate Relevant Form along with Acknowledgement Form.

2. Take the printout of ITR Form and Acknowledgement Form in 2 Copies.3. Sign ITR Form through Authorised Signatory.4. Submit it to Local Income Tax Office and collect a copy along with Receipt Stamp.

**In this process only Paper Form wil be generated, signed along wi th Acknowledgement Form and filed at Local IT office..

Indian Financial budget for 2010-11

Courtesy: IndiaBudget

Union Minister Pranab Mukherjee on 26/02/2010 presented the Budget for the fiscal 2010-11 in theParliament.

Relyon brings you the best and informative parts from the budget towards taxation. The due care has beentaken while presenting the content over here.

Click here for Budget 2009 | Budject 2009(I) | Budget 2008 | Budget Speeches

You can find these resources useful:

y Union Budget Speech PDFy Finance Bill 2010 PDFy Memorandum - Direct Taxes PDFy Memorandum - Customs and Excise PDFy Memorandum - Service Tax PDF

Tax Difference Utility

Know the difference in Effective Income tax payableby an individual for 2009-10 and 2010-11 FY



For More details visit www.indiabudget.nic.in Major Tax related updates:

1. Direct Tax Code implementation expected by April 20112. Goods and Services Tax implmentation postponed to April 20113. Saral-II (2 Page Income Tax Return) Form comes for simple I-T re turn filing of Salaried individuals.4. Tax rates - income limits extended drastically:

1. In case of Male1. Up to 1.6 Lakhs => 0% 2. Up to 5 Lakhs => 10% 3. Up to 8 Lakhs => 20% 4. Above 8 Lakhs => 30%

2. In case of Female1. Up to 1.9 Lakhs => 0% 2. Up to 5 Lakhs => 10% 3. Up to 8 Lakhs => 20% 4. Above 8 Lakhs => 30%

3. In case of Senior Citizens 1. Up to 2.4 Lakhs => 0% 2. Up to 5 Lakhs => 10% 3. Up to 8 Lakhs => 20% 4. Above 8 Lakhs => 30%

5. New section 80CCF: 20 Thousand deduction for investments in Infrastructural Bonds6. TDS late payment interest rate raised from 1 to 1.5% per month. (Section 201 Amendment)7. Companies => Surcharge rate reduced from 10 to 7.5%8. Minimum Alternate Tax rate changed from 15 to 18%9. Form 16/16A continues as earlier.10. No change in Service Tax rate. Additonal services added to increase the revenue.11. Treshold Limits for TDS extended as below:

1. 194B (Lotteries) => 1 0,000 (earlier 5,000)2. 194BB (Horse Race) => 5 ,000 (earlier 2,500)3. 194 C (Contracts) => 3 0,000 (earlier 20,000)

Multiple transactions together, it is 75,000 (earlier 50 ,000)4. 194 D (Insurance Commission) => 20,000 (earlier 5,000)5. 194H (Commission/Brokerage) => 5 ,000 (earlier 2,500)6. 194 I (Rent) => 1 ,80,000 (earlier 1,20,000)7. 194J (Technical/Professional Fee) => 3 0,000 (earlier 20,000)

Thats all the major coverage from the Union Budget presented by Minister of Finance in the parliment for the year 2010.

Due Date Table for Income Tax and associated matters:

y Return of Income Tax [with/without FBTReturn] y Payment of Advance Taxes of Income Tax - Individual/Firms y Payment of Advance Taxes of Income Tax - Companies y Payment of Advance Taxes of Fringe Benefit Tax

Return of Income Tax [with/without F BTReturn] :

y Person not required to be audited - 31st Julyy Person required to be audited - 30th September

P ayment of Advance Taxes of Income Tax - Individual/Firms:

y 1st Payment of 30% - 15th Septembery 2nd Payment of 60% - 15th Decembery 3rd Payment of 100% - 15th March



P ayment of Advance Taxes of Income Tax - Companies:

y 1st Payment of 25% - 15th Juney 2nd Payment of 50% - 15th Septembery 3rd Payment of 75% - 15th Decembery 4th Payment of 100% - 15th March

P ayment of Advance Taxes of Fringe Benefit Tax:

y 1st Quarter - 15th Juney 2nd Quarter - 15th Septembery 3rd Quarter - 15th Decembery 4th Quarter - 15th March

Due Dates for TDS and TCS Back to TDS Page

Due Date Table for TDS and TCS quarterly returns:

Quarter Form 2 4 Q Form 26Q Form 27Q Form 27EQ First July 15th July 15th July 14th July 15th

Second October 15th October 15th October 14th October 15th

Third January 15th January 15th January 14th January 15th

Fourth June 15th June 15th June 14th April 30th

TDS Rates for 2009-10 [Non Salaries and TCS] Back to TDS Page

2009-10 (Oct-Mar) 2009-10 (Apr-Sep) 2008-09

Male Female Senior Citizen Tax (%)

For Income Between 0 to 1,60,000 For Income Between 0 to 1,90,000 For Income Between 0 to 2,40,000 0

For Income Between 1,60,001 to3,00,000



10




20

For Income above 5,00,001 For Income above 5,00,001 For Income above 5,00,001 30

Surcharge 0

Education Cess 3

Section Nature of Payment Status Tax (%)

193 Interest on Debentures & Securities 10

194 Deemed Dividend 10194A Other Interest

> Aggregate sum exceeding Rs. 10,000 for Banking Co s , etc.perperson during the financial year.

> Aggregate sum exceeding Rs. 5,000 per person during thefinancial year

10

194B Lottery/Crossword Puzzle > Rs.5,000 30

194BB Winnings from Horse Race > Rs. 2,500 30

194C Contracts to Transporter, who has provided a valid PAN 0*



Contracts to Individuals/HUF 1

Contracts to others 2

194D Insurance Commission > Rs.5,000 10

194EE Withdrawal from NSS > Rs.2,500 20

194F Repurchase of Units by MF/UTI 20

194G Commission on Sale of Lottery Tickets > Rs.1,000 10194H Commission or Brokerage > Rs.2,500 10

194I Rent > Rs.1,20,000 p. a.Rent of Plant & Machinery

2

Rent of Land, Building, Furniture, etc 10

194J Professional or Technical Fess > Rs.20,000 10

194LA Compensation on Compulsory Acquisition of immovable property>Rs.1,00,000 during the financial year

10

Surcharge 0

Education Cess 0

* If there is no PAN details, then @ 1% or @2%. From 1st April 2010 it is 20%.


194E Payment to nonresident sportsmen or sports association 10

195(a) Income from foreign exchange assets payable to an Indian citizen 20

195(b) Income by way of long-term capital gain referred to in sec. 115E 10

195(c) Income by way of Short-term capital gains u/s. 111A 15

195(d) Income from other long-term capital gains 20

195(e) Income by way of interest payable by Government/Indian concern onmoney borrowed or debt incurred by Government or Indian concern inforeign currency

20

195(f) Royalty payable by Government or an Indian concern in pursuance of

an agreement made by non-resident with the Government or theIndian concern after March 31, 1976, where such royalty is inconsideration for the transfer of all or any rights (including the grantingof a licence) in respect of copyright in any book on a subject referredto in the first proviso to section 115A(1A) to the Indian concern or inrespect of computer software referred to in the second proviso tosection 115(1A), to a person resident in India -

1.Where the agreement is made before June 1, 1997 30

2.Where the agreement is made after May 31, 1997 but before June 1,2005

20

3.Where the agreement is made on or after June 1, 2005 10

195(g) Royalty (not being royalty of the nature referred to in (e) sub para)payable by Government or an Indian concern in pursuance of anagreement made by non-resident with the Government or the Indianconcern and where such agreement is with an Indian concern, the

agreement is approved by the Central Government or where it relatesto matter included in the industrial policy, the agreement is inaccordance with that policy

1.Where the agreement is made after March 31, 1961 but before April1, 1976

COMPANY 50

OTHERS 30

2.Where the agreement is made after March 31, 1976 but before June1, 1997

30


20




195(h) Fee for technical services payable by Government or an Indian concernin pursuance of an agreement made by non-resident with theGovernment or the Indian concern and where such agreement is withan Indian concern, the agreement is approved by the CentralGovernment or where it relates to matter included in the industrialpolicy, the agreement is in accordance with the policy -

1.Where the agreement is made after February 29, 1964 but before April 1, 1976

COMPANY 50

OTHERS 30


30


20


195(i) Any other income COMPANY 40

OTHERS 30

196A Income in respect of Units of Non-residents 20

196B Income and Long-term Capital gain from units of an Off shore fund 10

196C Income and Long-term Capital Gain from Foreign Currency Bonds orshares of indian companies

10

196D Income of Foreign Institutional Investors for Securities 20

Surcharge ( OnTax)

Applicable for Foreign Companies if payment/credit exceeds Rs.1 crore of such companies 2.5

Education Cess on Tax deducted Plus Surcharge 3

Collection Code Nature of P urchase Tax (%)

6CA Alcoholic liquor for human consumption 1

6C B Timber obtained under a forest lease 2.5

6CC Timber obtained under any mode other than forest lease 2.5

6CD Any other forest product not being timber or tendu leave 2.5

6CE Scrap 1

6CF Parking Lot 2

6CG Toll plaza 2

6C H Mining and quarrying 2

6CI Tendu leaves 5

Surcharge(On Tax)

Applicable for Foreign Companies if collections exceeds Rs.1 crore of such companies 2.5

Education Cess Applicable for Foreign Companies 3


193 Interest on Debentures & Securities COMPANY 20

OTHERS 10194A Other Interest

y > Rs. 10,000 for Banking Co s , etc.y > Rs. 5,000

COMPANY 20

OTHERS

10





194C(1) Payment to a contractor (in the case of advertising contracts) 1

194C(2) Payment to a contractor (other than an advertising contracts) 2

194C(3) Payment to a sub-contractor 1

194D Insurance Commission > Rs.5,000 COMPANY 20

OTHERS 10

194EE Withdrawal from NSS > Rs.2,500 20194F Repurchase of Units by MF/UTI 20

194G Commission on Sale of Lottery Tickets > Rs.1,000 10

194H Commission or Brokerage > Rs.2,500 10


10

Rent of Land, Building, Furniture, etc INDIVIDUAL /HUF 15

OTHERS 20



10

Surcharge ( OnTax)

Applicable for Companies/Firm. Also, Individual/HUF, if the total income exceeds or is likely toexceed Rs.10,00,000

10





195(b) Income by way of long-term capital gains 10

195(c) Income from other long-term capital gains 20

195(d) Income by way of interest payable by Government / Indian concernon money borrowed or debt incurred by Government or Indianconcern in foreigh currency

20

195(e) Royalty payable by Government or an Indian concern in pursuance of an agreement made by non-resident with the Government or theIndian concern after March 31, 1976, where such royalty is inconsideration for the transfer of all or any rights (including thegranting of a licence) in respect of copyright in any book on asubject referred to in the first proviso to section 115A(1A) to theIndian concern or in respect of computer software referred to in thesecond proviso to section 115(1A), to a person resident in India -

1.Where the agreement is made before June 1, 1997 COMPANY 30

OTHERS 30

2.Where the agreement is made after May 31, 1997 but before June1, 2005

COMPANY 20

OTHERS 30

3.Where the agreement is made on or after June 1, 2005 COMPANY 10

OTHERS 30

195(f) Royalty (not being royalty of the nature referred to in (e) sub para)payable by Government or an Indian concern in pursuance of anagreement made by non-resident with the Government or the Indianconcern and where such agreement is with an Indian concern, theagreement is approved by the Central Government or where it relates to matter included in the industrial policy, the agreement is inaccordance with that policy

1.Where the agreement is made after March 31, 1961 but before April 1, 1976

COMPANY 50

OTHERS 30



2.Where the agreement is made after March 31, 1976 but beforeJune 1, 1997

COMPANY 30

OTHERS 30


COMPANY 20

OTHERS 30


OTHERS 30195(g) Fee for technical services payable by Government or an Indian

concern in pursuance of an agreement made by non-resident withthe Government or the Indian concern and where such agreement iswith an Indian concern, the agreement is approved by the CentralGovernment or where it relates to matter included in the industrialpolicy, the agreement is in accordance with the policy -


COMPANY 50

OTHERS 30


COMPANY 30

OTHERS 30


COMPANY 20

OTHERS 30

4.Where the agreement is made on or after June 1, 2005 COMPANY 10OTHERS 30


196B Income and Long-term Capital gain from units of an Off shore fund COMPANY 10

OTHERS 10


COMPANY 10

OTHERS 10

196D Income of Foreign Institutional Investors for Securities COMPANY 20

OTHERS 20

Surcharge ( OnTax)

Applicable for Companies/Firm. Also, Individual/HUF, if the total income exceeds or is likelyto exceed Rs.10,00,000

10







6CE Scrap 1

6CF Parking Lot 2

6CG Toll plaza 2


6CI Tendu leaves 5

Surcharge( On Tax)


10

For a Non-Domestic Company 2.5

Education Cess on Tax Collected Plus Surcharge 3

TDS rates for Financial Year 2008-0 9

Form 26Q:





OTHERS 10

194A Other Interest


COMPANY 20

OTHERS

10





194C(3) Payment to a sub-contractor 1

194D Insurance Commission > Rs.5,000 COMPANY 20

OTHERS 10






10


OTHERS 20



10

Surcharge ( OnTax)


10


Form 27Q:






195(d) Income by way of interest payable by Government / Indian concernon money borrowed or debt incurred by Government or Indianconcern in foreigh currency

20

195(e) Royalty payable by Government or an Indian concern in pursuance of an agreement made by non-resident with the Government or theIndian concern after March 31, 1976, where such royalty is inconsideration for the transfer of all or any rights (including thegranting of a licence) in respect of copyright in any book on asubject referred to in the first proviso to section 115A(1A) to theIndian concern or in respect of computer software referred to in thesecond proviso to section 115(1A), to a person resident in India -




OTHERS 30


COMPANY 20

OTHERS 30


OTHERS 30

195(f) Royalty (not being royalty of the nature referred to in (e) sub para)payable by Government or an Indian concern in pursuance of anagreement made by non-resident with the Government or the Indianconcern and where such agreement is with an Indian concern, theagreement is approved by the Central Government or where it relates to matter included in the industrial policy, the agreement is inaccordance with that policy

1.Where the agreement is made after March 31, 1961 but before April 1, 1976

COMPANY 50

OTHERS 30


COMPANY 30

OTHERS 30


COMPANY 20

OTHERS 30


OTHERS 30

195(g) Fee for technical services payable by Government or an Indianconcern in pursuance of an agreement made by non-resident withthe Government or the Indian concern and where such agreement iswith an Indian concern, the agreement is approved by the CentralGovernment or where it relates to matter included in the industrialpolicy, the agreement is in accordance with the policy -


COMPANY 50

OTHERS 30


COMPANY 30

OTHERS 30


COMPANY 20

OTHERS 304.Where the agreement is made on or after June 1, 2005 COMPANY 10

OTHERS 30



OTHERS 10


COMPANY 10

OTHERS 10


OTHERS 20

Surcharge ( OnTax)


10


Form 27EQ:








6CE Scrap 1

6CF Parking Lot 2

6CG Toll plaza 2


6CI Tendu leaves 5Surcharge( On Tax)


10



TDS rates for Financial Year 200 9 -1 0 (From 0 1 st April 200 9 to 3 0th September 200 9 )

Form 26Q:



OTHERS 10

194A Other Interest


COMPANY 20

OTHERS

10





194C(3) Payment to a sub-contractor 1194D Insurance Commission > Rs.5,000 COMPANY 20

OTHERS 10






10


OTHERS 20



10

Surcharge ( OnTax)


10


Form 27Q:








195(d) Income by way of interest payable by Government / Indian concern onmoney borrowed or debt incurred by Government or Indian concern inforeigh currency

20

195(e) Royalty payable by Government or an Indian concern in pursuance of an agreement made by non-resident with the Government or theIndian concern after March 31, 1976, where such royalty is inconsideration for the transfer of all or any rights (including thegranting of a licence) in respect of copyright in any book on a subject referred to in the first proviso to section 115A(1A) to the Indianconcern or in respect of computer software referred to in the secondproviso to section 115(1A), to a person resident in India -


OTHERS 30


COMPANY 20

OTHERS 30


OTHERS 30

195(f) Royalty (not being royalty of the nature referred to in (e) sub para)payable by Government or an Indian concern in pursuance of anagreement made by non-resident with the Government or the Indianconcern and where such agreement is with an Indian concern, theagreement is approved by the Central Government or where it relatesto matter included in the industrial policy, the agreement is inaccordance with that policy

1.Where the agreement is made after March 31, 1961 but before April1, 1976

COMPANY 50

OTHERS 30


COMPANY 30

OTHERS 30


COMPANY 20OTHERS 30


OTHERS 30

195(g) Fee for technical services payable by Government or an Indian concernin pursuance of an agreement made by non-resident with theGovernment or the Indian concern and where such agreement is withan Indian concern, the agreement is approved by the CentralGovernment or where it relates to matter included in the industrialpolicy, the agreement is in accordance with the policy -


COMPANY 50

OTHERS 30

2.Where the agreement is made after March 31, 1976 but before June

1, 1997

COMPANY 30

OTHERS 30


COMPANY 20

OTHERS 30


OTHERS 30



OTHERS 10




COMPANY 10

OTHERS 10


OTHERS 20

Surcharge ( OnTax)


10


Form 27EQ:






6CE Scrap 1

6CF Parking Lot 2

6CG Toll plaza 26C H Mining and quarrying 2

6CI Tendu leaves 5

Surcharge( On Tax)


10



TDS rates for Financial Year 200 9 -1 0 (After 0 1 st October 200 9 ) -> U P DATED!!

Form 2 4 Q:

Male Female Senior Citizen Tax (%) For Income Between 0 to 1,60,000 For Income Between 0 to 1,90,000 For Income Between 0 to 2,40,000 0




10




20

For Income above 5,00,001 For Income above 5,00,001 For Income above 5,00,001 30

Surcharge 0

Education Cess 3

Form 26Q:


193 Interest on Debentures & Securities 10

194 Deemed Dividend 10

194A Other Interest > Aggregate sum exceeding Rs. 10,000 for Banking Co s , etc.per

person during the financial year.> Aggregate sum exceeding Rs. 5,000 per person during the financial

year

10





194C Contracts to Transporter, who has provided a valid PAN 0*

Contracts to Individuals/HUF 1

Contracts to others 2

194D Insurance Commission > Rs.5,000 10






2

Rent of Land, Building, Furniture, etc 10



10

Surcharge 0

Education Cess 0

* If there is no PAN details, then @ 1% or @2%. From 1st April 2010 it is 20%.

Form 27Q:




195(b) Income by way of long-term capital gain referred to in sec. 115E 10

195(c) Income by way of Short-term capital gains u/s. 111A 15

195(d) Income from other long-term capital gains 20

195(e) Income by way of interest payable by Government/Indian concern onmoney borrowed or debt incurred by Government or Indian concern inforeign currency

20

195(f) Royalty payable by Government or an Indian concern in pursuance of anagreement made by non-resident with the Government or the Indianconcern after March 31, 1976, where such royalty is in consideration forthe transfer of all or any rights (including the granting of a licence) inrespect of copyright in any book on a subject referred to in the first proviso to section 115A(1A) to the Indian concern or in respect of computer software referred to in the second proviso to section 115(1A),to a person resident in India -

1.Where the agreement is made before June 1, 1997 30


20


195(g) Royalty (not being royalty of the nature referred to in (e) sub para)payable by Government or an Indian concern in pursuance of anagreement made by non-resident with the Government or the Indianconcern and where such agreement is with an Indian concern, theagreement is approved by the Central Government or where it relates tomatter included in the industrial policy, the agreement is in accordancewith that policy

1.Where the agreement is made after March 31, 1961 but before April 1, COMPANY 50



1976 OTHERS 30


30


20


195(h) Fee for technical services payable by Government or an Indian concernin pursuance of an agreement made by non-resident with theGovernment or the Indian concern and where such agreement is with anIndian concern, the agreement is approved by the Central Government or where it relates to matter included in the industrial policy, theagreement is in accordance with the policy -

1.Where the agreement is made after February 29, 1964 but before April1, 1976

COMPANY 50

OTHERS 30


30


20


195(i) Any other income COMPANY 40

OTHERS 30


196B Income and Long-term Capital gain from units of an Off shore fund 10


10

196D Income of Foreign Institutional Investors for Securities 20

Surcharge ( OnTax)

Applicable for Foreign Companies if payment/credit exceeds Rs.1 crore of such companies 2.5


Form 27EQ:

Collection Code Nature of P urchase Tax(%)





6CE Scrap 1

6CF Parking Lot 2

6CG Toll plaza 2


6CI Tendu leaves 5

Surcharge(On Tax)

Applicable for Foreign Companies if collections exceeds Rs.1 crore of suchcompanies

2.5

Education Cess Applicable for Foreign Companies 3

eFiling of IT Returns Back to Income Tax Page

W hat is efiling?

The process of electronically filing Income tax returns through the internet is known as e-filing. It is mandatory for Companies andFirms requiring Section 44AB audit to submit the Income tax returns electronically for AY 2007-08 as well as AY 2008-09 . Any



Company and Firm requiring Section 44AB audit return without an e-filing receipt will not be accepted. The Income Tax Department is keen to encourage efiling of IT returns by all taxpayers in view of the following benefits to taxpayers.

y Anywhere-Anytime Filingy No long queuesy No Personnel Interfacey Quick Processingy Accurate data in return

New IT returns forms notified by IT Department

The new Income Tax (IT) return forms for AY 2008-09 were notified by the Government on 28th march 2008. The Income TaxDepartment is presently preparing their internal software to enable e-return preparation and to accept the efiled return. You candownload IT return forms and instructions here.

Efiling process

The efiling process for AY 2008-09 (current year) is briefly described below:

y Use Online ITR Filing program or download STO - ITR Software y Fill up Income and tax details. Based on tool tips and in-built validations ensure that the information filled is accurate.y You can save the form at any stage and complete the form as per your convenience.y Click on 'Generate XML file' button to generate the xml file of your IT return and save it on your computer.y Open the Income tax Department efiling website and create userid and password to log in.y After logging in, click on 'Submit the IT return' button on the website.y Browse and select the xml file corresponding to your IT return that is saved on your computer. You must be connected

to the Internet during this entire process. You can efile your IT return with or without digital signature.y After successful upload of details and validations at the website, the Income Tax Department would generate an

electronic receipt of the IT return. In case you have signed your return with a digital signature, the receipt of e-returnmay be kept for your records and this receipt need not be submitted to the IT Department.

y In case you have filed without a digital signature the electronic receipt generated will be the ITR-V form. Please notethat the ITR-V form can be generated only by the IT Department.

y Take a printout of the ITR-V form. Please sign on the ITR-V at the appropriate place to verify and acknowledge theelectronic submission of your IT return.

y Submit two copies to the Income Tax Department receipt counter. After placing an Acknowledgement stamp on the 2copies, the counter clerk would return one ITR-V form to you for your records and retain the other copy.y You can also file your IT return electronically through e-return intermediaries who would assist you with efiling and

submission of ITR-V after obtaining your signature to the IT department.

Information for Taxpayers

Income Tax return forms for 2008-09 are annexure-less forms (ie there is no need to attach TDS certificates, LIC receipts, otherdocuments etc with the return). Therefore, taxpayers are advised to ensure that the details filled in the IT return are accurate.

The IT Department has introduced a facility through M/s NSDL for any taxpayer (PAN holder) to verify the status of Tax Deductedat Source (TDS) or tax payments (Advance tax, Self Assessment tax etc) after registration. The procedure for viewing theconsolidated tax status called Form 26AS is available at the following weblink at NSDL. Frequently asked questions about Form26AS is available here.

E-file IT returns for Earlier years: [AY 2007-08]

Efiling of Income Tax returns for Assessment year (AY) 2007-08 (previous year) continues to be available: Click here to efile ITreturns for AY 2007-08.

Rule 12 of Indian Income Tax [2008] Back to Income Tax Page

Return of income and return of fringe benefits. [Substituted by the IT (Fourth Amdt.) Rules, 2007, w.e.f. 14 -5 -2007 and amended by IT (Sixth Amdt.) Rules, 2008, w.e.f. 01-04-



2008]

]

1 2. (1) The return of income required to be furnished under sub-section (1) or sub-section (3) or sub-section (4A) or sub-section(4B) or sub-section (4C) or sub-section (4D) of section 139 or clause (i) of sub-section (1) of section 142 or sub-section (1) of section 148 or section 153A or the return of fringe benefits required to be furnished under sub-section (1) or sub-section (2) of

section 115WD relating to the assessment year commencing on the 1st day of April, 2008 or any subsequent assessment year shall,

(a) in the case of a person being an individual where the total income includes income chargeable to income-tax under the headSalaries or income in the nature of family pension as defined in the Explanation to clause (iia) of section 57 but does not includeany other income except income by way of interest chargeable to income-tax under the head Income from other sources, be inForm No. ITR-1 and be verified in the manner indicated therein;

(b) in the case of a person being an individual [not being an individual to whom clause (a) applies] or a Hindu undivided familywhere the total income does not include any income chargeable to income-tax under the head Profits and gains of business orprofession, be in Form No. ITR-2 and be verified in the manner indicated therein;

(c) in the case of a person being an individual or a Hindu undivided family who is a partner in a firm and where income chargeableto income-tax under the head Profits and gains of business or profession does not include any income except the income by way of any interest, salary, bonus, commission or remuneration, by whatever name called, due to, or received by him from such firm, be inForm No. ITR-3 and be verified in the manner indicated therein;

(d) in the case of a person being an individual or a Hindu undivided family other than the individual or Hindu undivided familyreferred to in clause (a) or clause (b) or clause (c) and deriving income from a proprietory business or profession, be in Form No.ITR-4 and be verified in the manner indicated therein;

(e) in the case of a person not being an individual or a Hindu undivided family or a company or a person to which clause (g)applies, be in Form No. ITR-5 and be verified in the manner indicated therein;

(f) in the case of a company not being a company to which clause (g) applies, be in Form No. ITR-6 and be verified in the mannerindicated therein;

(g) in the case of a person including a company whether or not registered under section 25 of the Companies Act, 1956 (1 of 1956), required to file a return under sub-section (4A) or sub-section (4B) or sub-section (4C) or sub-section (4D) of section 139,be in Form No. ITR-7 and be verified in the manner indicated therein;

(h) in the case of a person who is not required to furnish the return of income but is required to furnish the return of fringebenefits, be in Form No. ITR-8 and be verified in the manner indicated therein.

(2) The return of income and return of fringe benefits required to be furnished in Form No. ITR-1 or Form No. ITR-2 or Form No.ITR-3 or Form No. ITR-4 or Form No. ITR-5 or Form No. ITR-6 or Form No. ITR-8 shall not be accompanied by a statement showing the computation of the tax payable on the basis of the return, or proof of the tax, if any, claimed to have been deductedor collected at source or the advance tax or tax on self-assessment, if any, claimed to have been paid or any document or copy of any account or form or report of audit required to be attached with the return of income or the return of fringe benefits under anyof the provisions of the Act.

(3) The return of income or return of fringe benefits referred to in sub-rule (1) may be furnished in any of the following manners,namely:

(i) furnishing the return in a paper form;

(ii) furnishing the return electronically under digital signature;

(iii) transmitting the data in the return electronically and thereafter submitting the verification of the return in Form ITR-V;

(iv) furnishing a bar-coded return in a paper form:

P rovided that

(a) a firm required to furnish the return in Form ITR-5 and to whom provisions of section 44AB are applicable or a company



required to furnish the return in Form ITR-6 shall furnish the return in the manner specified in clause (ii) or clause (iii);

(b) a person required to furnish the return in Form ITR-7 shall furnish the return in the manner specified in clause (i).

(4) The Director-General of Income-tax (Systems) shall specify the procedures, formats and standards for ensuring secure captureand transmission of data and shall also be responsible for evolving and implementing appropriate security, archival and retrievalpolicies in relation to furnishing the returns in the manners specified in clauses (ii), (iii) and (iv) of sub-rule (3).

(5) Where a return of income or return of fringe benefits, relates to the assessment year commencing on the 1st day of April, 2007or any earlier assessment year, it shall be furnished in the appropriate form as applicable in that assessment year.

29 . Who should register under VAT? Every Dealer whose taxable turn over exceeds two lakh Rupees during the year has to payVATEvery dealer whose taxable turnover exceeds fifteen thousand rupees in any of the month hasto pay VAT

30 . What is the limit for a dealer under CoT? Dealer whose total turn over does not exceed two lakh Rupees in any of the four Quarters willcome under CoT

31 . Can I File VAT Quarterly Return? Yes , VAT Return can be filed Quarterly

32 . What are all the changes in VAT for the year 2 006- 2 007? VAT110 which was used for revised return is now the return for Casual TradersFor any correction, VAT100 should be used by mentioning the 'Type of return' as'Corrected'/'Revised'/'Final'Commodity-wise particulars (both Sales as well as for Purchases including non-saletransactions) should be provided in the Annual StatementEntry and Special Entry Tax Return form part of VAT100

Annexure I is introduced which is extract of local purchases. which forms a part of VAT100 Annexure II is introduced for giving particulars related to statutory forms like C form etc.,Computation of ineligible portion of input tax under Sec 14 and Sec 17 has been revised and anew formula is givenIntroduction of Annual ReturnIntroduction of Form 6 and Form 170

33 . What is Annual Return? Form 115 is the annual statement to be submitted by a dealer under VAT after the completionof the year 2006-07. This contains commodity wise information for all types of transactions.Form 135 is the annual statement to be submitted by a dealer under CoT after the completionof the year 2006-07.

34 . What is Form 6? Form 6 is the form to update registration data. Form 6 has to be filled in and attached to thereturn for the last month of every year

35 . What is Form 170? Form 170 is the Register of Purchases made within the state under Rule 33(2). Every dealer shall keep the account of Purchase made within the state in form 170

36 . What is Annexure - I and Annexure - II? Annexure - I contains the details of Input-Turnover (Local) and Tax Paid as per Tax Invoices.

This information shall be furnished by a VAT dealer whose turnover for the preceding year isless than 2 crores and/or less than 16 lakhs during the month. Annexure - II contains Details of statutory forms filed for the particular quarter ending

37 . Can a CoT Dealer buy CST goods? Yes , A CoT Dealer can buy CST goods.

Frequently Asked Question on VAT



1. What is VAT? Each commodity passes through different stages of production and distribution before finally itreaches the Consumer. Some value is added at each stage of the production and distributionchain. Value Added Tax (VAT) is tax on value addition at each stage. Under VAT system, adealer collects tax on his sales, retains the tax paid on his purchase and pays balance to theGovt. Treasury. It is a consumption tax because it is borne ultimately by the final Consumer.The tax paid by the dealer is passed on to the buyer. It is not a charge on the dealer. Hence,VAT is a multipoint tax system with provision for set off of tax paid on purchases at each pointof sale.

2 . H ow is VAT computed? The dealer pays VAT by deducting the tax paid on purchases (input tax) from his tax collectedon sales (output tax). Hence, VAT = Output Tax â¼³ Input Tax.For example: A dealer pays Rs.10.00 @ 10% on his purchase price of goods valued Rs.100.00.He sells the goods at Rs.150.00 and collects tax amounting to Rs.15.00 (@ 10%). He will payRs.5.00 (Rs.15.00- Rs.10.00) as he has already paid Rs.10.00 to his seller while purchasingthose goods.

3. H ow is VAT different from Sales Tax? VAT will have only four rates instead of large number of rats of Sales Tax, with off setting of tax

on inputs against that on output; VAT does away with tax on tax. Claiming input tax credit under VAT ensures proper invoicing. Overall, these features of VAT encourage disclosure of completeinformation on business turnover.

4. Who is to be covered by VAT? All business transactions carried on within a State by individuals, partnerships, Companies, etc.will be covered by VAT.

5. Who will not be covered by VAT? VAT will not cover small business with a turnover below a certain limit. In Orissa, a generaltrader having annual turnover of Rs.2, 00,000/- or more will be covered under VAT. The dealer,who purchases goods from outside the State for resale inside the State, or sells to outside theState, is liable to pay tax on his first transaction. The taxable limit for works contractor is Rs.50,000/- and for manufacturer is Rs.1, 00,000/-.

6. What are the tax rates under VAT? There are just four rates under VAT- the zero rate (exempted goods), 1%, 4% and a general rateof 12.5%. These rates will be uniform in all States across the country. The same set of goodswill be charged at the same rates in all the States. Most essential commodities are exempt fromVAT or fall in the category of 4%.

7. Will VAT increase the cost of compliance?No. The cost of compliance will come down due to self-assessment as dealers will not have toapproach the department for statutory forms or for assessment.

8. Will the cost of doing business go up as dealers will have to pay tax on their purchases? No. If we assume that the average time required for settling amounts receivable and payable isthe same as the time for remitting tax and processing any refund, no additional cost is imposedon trade or industry.

9 . Will prices go up due to VAT and will the consumer suffer?No. As against three slabs of 4, 8 and 12 per cent in the present regime VAT will have only twomajor slabs of 4 and 12.5 per cent; some commodities falling in the 8 per cent slab will comedown to the 4 per cent slab, bringing the prices down. Further, input tax credit and credit allowedfor purchase of capital goods should reduce the effective selling price.

10 . Will input tax credit be available on capital goods used in the execution of works contract?Yes. Input tax credit will be available on capital goods purchased after April 1, 2005 for execution of works contracts in NCT of Delhi subject to conditions. However, in case a dealer,after availing tax credit, transfers the assets/capital goods, on which he had availed tax credit,out of NCT of Delhi for executing other works not liable to be taxed in Delhi, the credits soallowed shall be reversed and tax will have to be paid on such transfer of capital goods/assets.



The tax so payable shall be equivalent to the unutilized portion of tax credit allowed by thedepartment less tax payable at usual rates on such transfer or sale.

11 . What is zero rating under VAT? H ow does it differ from exempt goods? Zero rate is applicable to goods for certain transactions under VAT and input tax credit isavailable on those transaction. Under VAT, the goods exported outside India, sold to an EOUand to a dealer having business under a Special Economic Zone (SEZ), Software TechnologyPark (STP), Electronic Hardware Technology Park (EHTP) are zero rated. In these transactionsthe tax rate will be zero and input tax credit will be available. The propose is that the goodsexported or sold to outside the State will be free of any load of tax in it, which will increasecompetitiveness and encourage exports.Exempt goods are those goods whose tax rate is zero, but input tax credit will not be available.Essential items such as agricultural implements manually operated or animal driven, books,periodicals, journals, fresh milk, etc. are in the exempted category.

Value Added Tax

In one the most large scale reforms of the country's public finances in over past 50 years, India has finallyagreed the launch of its much-delayed Value Added Tax (VAT) from 1st April 2005. At a rate of 12.5%, VATwill come in on April 1, 2005. The tax, agreed after state finance ministers met in New Delhi, is designed to

make accounting more transparent, cut trade barriers and boost tax revenues. The system had been postponed many times, mainly because of opposition from the powerful trading lobby.

Ashim Dasgupta, who heads a panel overseeing the implementation of VAT, said: "We are very happy toannounce that a broad consensus among states was arrived at the meeting to introduce VAT on April 1,2005." The Congress-led new left-leaning United Progressive Alliance (UPA) government has madeimplementing VAT one of its key priorities.

According to analysts VAT is essential in tackling the problem of tax evasion. In India, all the stategovernments collect over Rs 85,000 crore (Rs 850 billion) by way of sales tax and further over 20,000 crore(Rs 200 billion) by way of Central Sales Tax. This is what officially comes mostly from petroleum, liquor, ironand steel and cement companies. Rough estimates suggest that these industries account for over 50 per cent sales tax for the states and the Centre. Majority of the officials in sales tax departments believe thatwhat they actually collect is less than 50 per cent of the revenue that should otherwise accrue to them if alltransactions are accounted for by the businessmen.

India has a large un-organised market, especially agro-based industries and here a large number of transactions go unrecorded. The menace of stock transfers adds to the problem of tax evasion. In India,introduction of VAT will only change the collection methods for sales tax rather than reform the indirect taxsystem.

VAT is nothing but sales tax at source. Instead of collecting it after five months or so, the state governmentswould collect the same in advance and then allow set-offs to the businessmen. All tax paid on inputs, subjectto rules made, shall be allowed to set-off against the tax on output. There would be exceptions like CST notallowed to be set off if sales are made locally in some other state; octroi not to be set off against output tax,etc.

What about Central Sales Tax Act, 1 9 56? Well, this will remain and might be the biggest stumbling block for successful introduction of VAT in India.Double taxation under the Central Sales Tax Act, even for declared goods under Section 14, has beenpermitted. But the biggest problem is that the central sales tax paid by the businessmen will not be allowedto be set off against local output tax payable. A city like Delhi will suffer the most.

State governments have agreed not to start new incentive schemes giving sales tax exemptions. 'C' formshave been made mandatory even when the local sales tax is less than 4 per cent. 'C' forms are requiredeven when sales are made from sales tax free zones. Therefore, the power given to the state governmentunder Section 8(5) of the Central Sales Tax Act is now virtually redundant as even if the sales tax is reducedto zero, the 'C' forms would still be required. It would be a difficult scenario for local VAT and CST to co-exist. Single VAT, which should be a combination of sales tax, service tax and excise duty is what we shouldhave aimed for.



Necessity of Value Added Tax: The General perception of the existing single point sales tax system is thatit is highly complex with multiplicity of rates, plethora of explanation, many rates in some group of item,extensive use of statutory forms, high and unrealistic quota of assessment, loss of revenue on valueadditions, Tax rate war between States , etc. The consensus was that a new system is needed and Value

Added Tax has emerged as a principal instrument of taxing domestic consumption worldwide during last four decades. It is now in operation in more than 100 Countries. The basic advantages of Value Added Tax canbe stated as its neutrality, transparency, certainty and self policing mechanism.

What is VATValue Added Tax is a multi point sales tax with set off for tax paid on purchases. It is basically a tax on thevalue addition on the product. The burden of tax is ultimately born by the consumer of goods. In manyaspects it is equivalent to last point sales tax. It can also be called as a multi point sales tax levied as aproportion of Valued Added.

State Value Added Tax. The discussion regarding the VAT and the implementation which is being planned is only confined to theState. There is no proposed Central VAT at present in the time frame of 1.4.2003. All the States are draftingtheir separate Value Added Tax Act and as per the present position, every States will have a separate VAT

Act with different provision not corresponding with each other. It can be stated that the proposed VAT Act isthe primary stage of VAT.It is proposed that there would be Two tax rate slabs on which tax would be levied. The first one would be4% and would covered all essential items. The second one is 10% and all luxury items would be covered. Inaddition special rate slabs are also proposed which are 1% for bullion and jewellery, 20% for Non Essential

Goods and exemption to certain goods like agricultural produce etc. Petroleum products are not included inVAT rates. Separate rate would be notified for them.

Set off. ( Input Credit ): At present the set off would be available on the goods locally purchased within the State only. No set off would be available to the goods purchased in the course of inter state trade and commerce. It will benecessary to produce the tax invoice to claim set off. The tax should have been charged in the invoice.Exempted Goods: Some goods would be declared as exempted by the State Government under theproposed VAT Act. However the present view as per guide lines issued by the State Government are that noset off would be allowed on the exempted goods. It means that the tax suffered on the raw material for manufacture of exempted goods would not be refunded

Manufacturer: The manufacturer would be required to purchase raw material after paying full tax on the rate applicable onsuch material. Unlike the present system wherein the manufacturer can purchase the goods at aconcessional rate of tax against declaration form no declaration form will be required to be issued bythe Manufacturer. The input tax suffered by him would be adjusted \ set off from the sale of the finishedproduct. The tax adjustment of input credit of the goods purchased within the State would be available onthe sales made within the State and also on the inter state sales subject to the tax payable. No adjustmentwould be available of the input credit in case of branch transfer, consignment sale.

Trader: The trader would be required to collect tax on the sales made by him and the tax liability would be set off \adjusted from the purchase \ input tax credit of the goods locally purchased in that State.

Issue of Invoice: Under the proposed Value Added Tax Act issue of invoice would be mandatory. No set off \ input creditwould be allowed unless the original tax invoice is produced wherein tax is clearly charged separately in theinvoice.

Declaration Form: Use of declaration form of purchase of goods on concessional rate of tax or NIL rate of tax under the State Act would be completely finished. There would be no requirement of declaration formunder the proposed Value Added Tax. However the Road Permits like ST 18 A and ST 18 C declarationforms would continue. Declarations forms of CST Act would also continue

Accounting: The basic account books required for the purpose of VAT Act are Purchase and Sale Register. Both theregisters would be the basis on which the calculation of payment of tax would be made. The normal practiceof entering the gross value of Purchase bill would be changed. The assessee would be required to enter thevalue of goods in the goods A\c and the amount of tax in the Tax A\c separately.

Stocks:



Stock statement are required to be furnished as prescribed for the quarter ending and then monthly fromJanuary to March . Set off of tax paid stocks would be given. Tax paid stocks as on march ending wouldbe the basis for claiming set of under the new VAT Act. However, no set off would be available for the taxpaid stock purchased prior to 1.4.2005.

P rocedure for e- P ayment of Direct Tax in india Back to Income Tax Page

Flow Chart:

Click Here to Save this as PDF

P re-requisites:

1. Valid TAN and PAN2. Internet Banking Account 3. Good internet connection4. In case TDS the amount of payment should be spilt based on:

a. Type of Deductee ( i.e deduction from Companies and from Non-Companies)b. Nature of Payment (i.e. For each section like 94C, 94J etc for Companies and from Non-

Companies separately)5. Sufficient balance in the bank to cover the amount of payment for immediate transfer

Please avoid using browsing centres for making e-payments as there are chances of fraud.

List of banks, available for e-payment of Taxes:

Following is the list of bank, currently providing this facility. Tax Payer should have Net-Banking account with any of these banks.

Axis Bank State Bank of Travancore Bank of Maharashtra

State Bank of India State Bank of Indore State Bank of Hyderabad

Punjab National Bank Vijaya Bank State Bank of Saurashtra

Indian Overseas Bank HDFC Bank Union Bank of India

Canara Bank Oriental Bank of Commerce Allahabad Bank

Indian Bank State Bank of Patiala Dena Bank

Bank of India Bank of Baroda Syndicate Bank



Corporation Bank IDBI Bank ICICI Bank

State Bank of Bikaner & Jaipur State Bank of Mysore

Step by Step P rocedure for e-payment:

1. Visit www.tin-nsdl.com2. Click on the link for " e-payment: Pay Taxes Online "3. Select the relevant challan i.e. ITNS 280, ITNS 281, ITNS 282 or ITNS 283, as applicable.4. Enter its PAN/TAN as applicable. There will be an online check on the validity of the PAN / TAN entered.5. If PAN/ TAN is valid the taxpayer will be allowed to fill up other challan details.

1. Tax Collected from Companies or Non Companies2. Assessment Year Choose proper assessment year. Example, while making payment towards TDS

/TCS of Financial year 2007-08, select assessment year 2008-09.3. Valid TAN4. Address where city, state and pin code is compulsory5. Type of Payment i.e. in case of TDS 200 (TDS/TCS payable by Tax payer)6. Nature of Payment Section7. Select your Bank Name8. Pl note, the amount of payment is not to be entered here, but it should be entered in the Bank

website.6. Click on Proceed to submit data entered. Now, a confirmation screen will be displayed. If the taxpayer

confirms the data entered in the challan, it will be re-directed to the net-banking site of your bank. If dataneeds editing, the user can do the same by clicking Edit .

7. In the Net banking site, the taxpayer should login to the net-banking site with the user id/ passwordprovided by the bank for net-banking purpose and enter relevant payment details like basic tax, surcharge,cess, interest, penalty etc., Select the relevant bank account in case you have multiple accounts with internet facility for the same login.

8. On successful payment, a Challan counterfoil will be displayed containing CIN, payment details and bankname through which e-payment has been made. This counterfoil is proof of payment being made.

9. Please note that for each Challan, a separate payment has to be made.10. On paying against all Challan and obtaining the CIN details, log out of the bank web site11. While it is mentioned that payment can be made either through credit card or debit card, the same is yet to

be made available to the taxpayers.

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