E-Filing of Income Tax Returns

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This presentation takes one through the basic e-filing procedures under the Income Tax Rules prevailing in India. It explains the concepts in a very simplified manner.

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E-Filing of Income Tax Returns

  1. 1. CA Sandesh Mundra, Reach us at www.smaca.in
  2. 2. Q 1 <ul><li>A) First PM of India </li></ul><ul><li>B) First Finance Minister of India </li></ul><ul><li>C) First President of India </li></ul><ul><li>D) First Governor of India </li></ul>CA Sandesh Mundra, Reach us at www.smaca.in
  3. 3. <ul><li>R. K. Shanmukham Chetty </li></ul><ul><li>Sir R. K. Shanmukham Chetty (1892–1953) was an Indian economist . He became the first finance minister of India after it became independent in 1947. </li></ul>CA Sandesh Mundra, Reach us at www.smaca.in
  4. 4. CA Sandesh Mundra, Reach us at www.smaca.in
  5. 5. An Overview of the Process of e-Filing of Returns CA Sandesh Mundra, Reach us at www.smaca.in
  6. 6. CA Sandesh Mundra, Reach us at www.smaca.in
  7. 7. <ul><li>Return of Income : </li></ul><ul><ul><li>It is Written Declaration of an Income of an Assessee earned by him during the Previous Year and the calculation of Tax liable to pay on such income. </li></ul></ul><ul><li>Declaration is to be made in the Forms as applicable to an assessee. </li></ul><ul><li>Every assessee should quote their correct PAN in the return of income. </li></ul>CA Sandesh Mundra, Reach us at www.smaca.in
  8. 8. Provisions of Income Tax Act: <ul><li>Section 139(1) : </li></ul><ul><ul><li>Mandatory to file income tax return </li></ul></ul><ul><ul><ul><li>Companies </li></ul></ul></ul><ul><ul><ul><li>Assessee whose income exceeds the maximum exempted income limit </li></ul></ul></ul>CA Sandesh Mundra, Reach us at www.smaca.in
  9. 9. Important sections of the Income Tax Act <ul><li>Return of losses [Sec 139(3)] </li></ul><ul><li>Belated Return [ Sec 139(4)] </li></ul><ul><li>Revised Return [Sec 139 (5)] </li></ul><ul><li>Bulk Filing of return [Sec 139(1A)] </li></ul><ul><li>Issue of Notice [Sec 142(1)] </li></ul>CA Sandesh Mundra, Reach us at www.smaca.in
  10. 10. Time Limit of Filing the income tax return CA Sandesh Mundra, Reach us at www.smaca.in
  11. 11. <ul><li>Companies : 30 th Sept. </li></ul><ul><li>A person whose accounts are required to be audited under the I.T.Act or under any </li></ul><ul><li>other Act : 30 th Sept. </li></ul><ul><li>A working partner of the firm whose accounts are audited under the I.T.Act or under any other any act : 30 th Sept </li></ul><ul><li>For other person : 31st July. </li></ul>CA Sandesh Mundra, Reach us at www.smaca.in
  12. 12. Consequence of non filing of return of income CA Sandesh Mundra, Reach us at www.smaca.in
  13. 13. <ul><li>1. Assessing officer can - </li></ul><ul><li>Assessment made u/s 144 </li></ul><ul><li>Issuing notice u/s 142(1) </li></ul><ul><li>Issuing notice u/s 148 </li></ul><ul><li>2. Total failure – Penalty as per the Act. </li></ul><ul><li>3. Delay in filing – Interest levied u/s 234A(1). </li></ul><ul><li>4. Penalty u/s 271. </li></ul><ul><li>5. Prosecution u/s 276CC. </li></ul>CA Sandesh Mundra, Reach us at www.smaca.in
  14. 14. Details about PAN <ul><li>What Is PAN? </li></ul><ul><li>Permanent Account Number (PAN) is a ten-digit alphanumeric number, issued in the form of a laminated card, by the Income Tax Department. </li></ul><ul><li>A typical PAN is AABPS1205E. </li></ul><ul><li>{Section 139A(7) Expln (b) and (c)} </li></ul><ul><li>Why Is It Necessary To Have PAN? </li></ul><ul><li>It is mandatory to quote PAN on return of income, all correspondence with any income tax authority. From 1 January 2005 it will be mandatory to quote PAN on challans for any payments due to Income Tax Department. </li></ul>CA Sandesh Mundra, Reach us at www.smaca.in
  15. 15. Details of PAN No. continued… <ul><li>{Section 139A (5) (a) and (b)} </li></ul><ul><li>It is also compulsory to quote PAN in all documents pertaining to financial transactions notified from time-to-time by the Central Board of Direct Taxes. Some such transactions are sale and purchase of immovable property or motor vehicle or payments in cash, of amounts exceeding Rs. 25,000/-to hotels and restaurants or in connection with travel to any foreign country. It is also mandatory to mention PAN for obtaining a telephone or cellular telephone connection. Likewise, PAN has to be mentioned for making a time deposit exceeding Rs. 50,000/- with a Bank or Post Office or depositing cash of Rs. 50,000/- or more in a Bank. </li></ul><ul><li>{ Section 139A (5) (c) read with Rule 114B } </li></ul>CA Sandesh Mundra, Reach us at www.smaca.in
  16. 16. <ul><li>Can an application for PAN be made through Internet? </li></ul><ul><li>Yes, application for fresh allotment of PAN can be made through Internet. Further, requests for changes or correction in PAN data or request for new PAN card (for an existing PAN) may also be made through Internet. For more details visit (www.tin-nsdl.com) </li></ul><ul><li>What documents and information have to be submitted along with the application for Form 49A? </li></ul><ul><li>a. Individual applicants will have to affix one recent, coloured photograph (Stamp Size: 3.5 cms x 2.5 cms) on Form 49A; </li></ul><ul><li>b. Any one document listed in Rule 114 must be supplied as proof of 'Identity' and 'Address'; and </li></ul><ul><li>c. Designation and code of the concerned Assessing Officer of Income Tax department will have to be mentioned in Form 49A. </li></ul>CA Sandesh Mundra, Reach us at www.smaca.in
  17. 17. What is e-Filing <ul><li>The process of electronically filing Income tax returns through the internet is known as e-Filing. </li></ul><ul><li>It is mandatory for Companies and Firms requiring statutory audit u/s 44AB to submit the Income tax returns electronically from AY 2007-08. </li></ul><ul><ul><li>Any Company/ Firm requiring statutory audit u/s 44AB return submitted without a e-Filing receipt will not be accepted. </li></ul></ul><ul><li>e-filing is possible with or without digital signature. </li></ul>CA Sandesh Mundra, Reach us at www.smaca.in
  18. 18. Relevant Notifications, Circulars & Instructions <ul><li>New forms ITR1 to ITR 8 for AY 2007-2008 notified on 14th May’07. </li></ul><ul><li>Circular no. 3/2007 issued on 25th May’07 regarding acceptance of paper returns for companies and firms covered by 44AB under certain circumstances. </li></ul><ul><li>Circular no 9/2006 - Exhaustive explanation of the entire scheme of e-Filing for Public. </li></ul><ul><li>Circular No 12/ 2006 – E-filing not mandatory for Representative Assessee. </li></ul><ul><li>Instruction no. 7 dt 10/10/2006 - Exhaustive explanation & other guidelines for department of the entire scheme of e-Filing for Public. </li></ul><ul><li>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. </li></ul>CA Sandesh Mundra, Reach us at www.smaca.in
  19. 19. Relevant Notifications, Circulars & Instructions Historical Perspective <ul><li>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: </li></ul><ul><li>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. </li></ul><ul><li>Digital signature, e-return, e-return intermediary were defined in this scheme </li></ul>CA Sandesh Mundra, Reach us at www.smaca.in
  20. 20. Types of e-Filing … <ul><li>There are three ways to file returns electronically </li></ul><ul><li>Option 1: Use digital signature in which case no paper return is required to be submitted </li></ul><ul><li>Option 2: File without digital signature in which case ITR-V form is to filed with the department. This is a single page receipt cum verification form. </li></ul><ul><li>Option 3: File through an e-return intermediary who would do e-Filing and also assist the Assessee file the ITR V Form . </li></ul>CA Sandesh Mundra, Reach us at www.smaca.in
  21. 21. CA Sandesh Mundra, Reach us at www.smaca.in
  22. 22. CA Sandesh Mundra, Reach us at www.smaca.in
  23. 23. New IT Returns – Annexure-less Forms CA Sandesh Mundra, Reach us at www.smaca.in For Individuals, HUF Select appropriate Income Tax Return (ITR) Preparation Software ITR-1 ITR-2 ITR-3 ITR-4 Individual Individual Individual Individual & HUF & HUF & HUF 1 Income from Salary/Pension ▪ ▪ ▪ ▪ 2 Income from Other Sources (only Interest income or Family Pension) ▪ ▪ ▪ ▪ 3 Income/Loss from Other Sources ▪ ▪ ▪ 4 Income/Loss from House Property ▪ ▪ ▪ 5 Capital Gains/Loss on sale of investments/property ▪ ▪ ▪ 6 Partner in a partnership Firm ▪ ▪ 7 Income from Proprietary Business/Profession ▪
  24. 24. New IT Returns – Annexure-less Forms CA Sandesh Mundra, Reach us at www.smaca.in 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 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 ▪ ▪ ▪ ▪ ITR-7 will not be available for e-Filing
  25. 25. Change in Procedure of e-Filing CA Sandesh Mundra, Reach us at www.smaca.in Type Change For Digitally signed Returns No change Paper Returns – Two step Procedure After uploading data – Instead of filing paper return Assessee to file verification Form Called ITR-V (Combination of Acknowledgement of e-return & Verification) Paper Returns – through e -intermediaries
  26. 26. e-Filing Process – At a glance <ul><li>Select appropriate type of Return Form </li></ul><ul><li>Download Return Preparation Software for selected Return Form. </li></ul><ul><li>Fill your return offline and generate a XML file. </li></ul><ul><li>Register and create a user id/password </li></ul><ul><li>Login and click on relevant form on left panel and select &quot;Submit Return&quot; </li></ul><ul><li>Browse to select XML file and click on &quot;Upload&quot; button </li></ul><ul><li>On successful upload acknowledgement details would be displayed. Click on &quot;Print&quot; to generate printout of acknowledgement/ITR-V Form. </li></ul>CA Sandesh Mundra, Reach us at www.smaca.in
  27. 27. e-Filing Process – At a glance <ul><li>Incase the return is digitally signed , on generation of &quot;Acknowledgement&quot; the Return Filing process gets completed. You may take a printout of the Acknowledgement for your record. </li></ul><ul><li>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. The tax payer has to fill-up the verification part and verify the same. A duly verified ITR-V form should be submitted with the local Income Tax Office within 15 days of filing electronically. This completes the Return filing process for non-digitally signed Returns. </li></ul>CA Sandesh Mundra, Reach us at www.smaca.in
  28. 28. Demo on efiling – Copy paste this link https://incometaxindiaefiling.gov.in/portal/webdemo_on_efiling.do CA Sandesh Mundra, Reach us at www.smaca.in

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