E-Filing of Income Tax

e-Filing of Income Tax Returns
by
Raushan 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
Thursday, August 1, 2013 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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Click Here

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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)
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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
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Excluded income
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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)
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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.
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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.
Thursday, August 1, 2013 e-Filing of IT return by Raushan
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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
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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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Click Here

Windows appears
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Click Here

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.
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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.
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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.
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Changes under ITR-2 Continued
3. 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.
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1. A1. A Schedule ALSchedule AL covering the details of personal assets and liabilities in Indiacovering 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 be2. 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 ofcovered by this reporting requirement. In respect of this an exhaustive list of
assets comprising land, building, bank (including all deposits), shares andassets 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 orjewelry, 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 any3. 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.
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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 acc
ounts 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
December
March
In Case of Companies
• 15 % On or before 15th
June.
• 45% on or before 15th
September
December
March
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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
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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
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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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Registration
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Click
Here

Sellect User Type
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1-Click
Here
2-Click
Here

Provide your Details
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Click Here

Login
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Login – Enter PAN and password
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Viewing TDS-form 26 AS
• 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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Viewing TDS-26AS -1
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Here

Viewing TDS 26 AS-2
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Click
Here

Viewing TDS 26AS-3
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Click Here

Viewing TDS-26AS – 4(A)
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Select A.Y. Select File types

Viewing TDS 26AS – 4(B)
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e-Filing 2013-14
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Clic he
Click Here

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Click ere
Submission:-Provide information and attach XML file
Click Here

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
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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
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Thanks To
All Of You For Your Attention
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49

E-Filing of Income Tax

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