Income Tax process and e-filing

http://financeminister.in/income_tax_calculator.php

https://incometaxindiaefiling.gov.in

Below I am listing the step-by-step activities of the Tax Process that a working professional need to do in a given Financial Year. Here FY refers to Financial Year  and  AY refers to Assesment Year.

1. Each month we will pay the Tax (From APRIL 20xx to MARCH 20xx+1) through our Employer for the FY 20xx – 20xx+1.
2. In the month April 20xx, we will give the investment details to the employer (in our employer specified portal) for the FY 20xx – 20xx+1.
3. In the month January 20xx+1, we will give the investment proof details , Rent receipts… to the Employer Finance Department for the FY 20xx – 20xx+1.
4. In the month MAY/JUNE 20xx+1, employer gives the Form 16 for the FY 20xx – 20xx+1 to us (The proof given by the employer to the employee for the tax paid by the employee).
5. In the month July 20xx+1 (on or before July 31st of every year), we will fill the ITR forms (earlier it was NayaSaral form) and will file the ITRs (e-filing) for the FY 20xx – 20xx+1 @ the Income Tax url : https://incometaxindiaefiling.gov.in and after we complete the e-filing, we will get ITR-V (a PDF file)  as a proof. We will send a signed copy of this PDF to Income Tax department.
6. Later Tax department will send us a confirmation mail to our mailId for the tax paid.

How to do the E-Filing :

1. Download the ITR form from the URL : https://incometaxindiaefiling.gov.in/portal/individual_huf.do
2. Fill the appropriate ITR form and generate XML from it (please find below for detailed steps).
3. Go to https://incometaxindiaefiling.gov.in and register and create a user id/password.
4. Please note that the name to be given while registering should be exactly similar to the name appearing in your PAN card.
5. Go to “Submit Return” and select the assessment year.
6. Now select the appropriate type of Return Form and select whether the form is digitally signed.
7. Browse to select XML file and click on “Upload” button.
8. On successful upload acknowledgement details would be displayed. Click on “Print” to generate printout of acknowledgement/ITR-V Form.
9. ITR V is a pdf file and password protected. The password will be your PAN number in small letters plus date of birth in ddmmyyyy format without spaces.
10. Incase the return is digitally signed, on generation of “Acknowledgement” the Return Filing process gets completed. You may take a printout of the Acknowledgement for your record.
11. 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. A duly signed ITR-V form should be mailed to “Income Tax Department – CPC, Post Bag No – 1, Electronic City Post Office, Bengaluru – 560100, Karnataka, ”    BY ORDINARY POST OR SPEED POST ONLY   within 120 days of transmitting the data electronically. ITR-V sent by Registered Post or Courier will not be accepted.

Please keep in mind the below points when you fill the ITR form:

1. When you fill ITR form, enable the macros in the xls. In Excel 2007, it appears in a tab “Security warning” – enable that option.
2. Enter the values only in the GREEN colored xl cells.
3. Use TAB to navigate through the data entry cells on the sheet.
4. Dates must always be entered as dd/mm/yyyy formats  (ex : 14/03/2010).
5. Click  ”Next/Previous”  to navigate between the sheets.
6. After you fill a sheet, click the “Validate” button.
7. Click on ‘Calculate Tax’ button on the ‘Income Details’ sheet.
8. Save your Excel File once your work is completed.
9. After above steps completed for all sheets, click on Generate XML from any of the sheets.
10. The XML file is now saved in the same folder in which the Excel utility is saved, and can be uploaded.

Dos and Dont’s for printing and submitting of ITR-Vs to ITD-CPC Bangalore

1. Please use Ink Jet /Laser printer to print the ITR-V Form.
2. The ITR-V Form should be printed only in black ink.
3. Ensure that print out is clear and not light print/faded copy.
4. Please do not print any water marks on ITR-V. The only permissible watermark is that of “Income tax Department” which is printed automatically on each ITR-V.
5. The document that is mailed to CPC should be signed in original in BLUE INK.
6. Photocopy of signatures will not be accepted.
7. The signatures or any handwritten text should not be written on Bar code.
8. Bar code and numbers below barcode should be clearly visible.
9. Only A4 size white paper should be used.
10. Avoid typing anything at the back of the paper.
11. Perforated paper or any other size paper should be avoided.
12. Do not use stapler on ITR V acknowledgement.
13. In case you are submitting original and revised returns, do not print them back to back. Use two separate papers for printing ITR-Vs separately.
14. More than one ITR-V can be sent in the same envelope.
15. Please do not submit any annexures, covering letter, pre stamped envelopes etc. along with ITR-V.
16. ITR-Vs that do not conform to the above specifications may get rejected or acknowledgement of receipt may get delayed.

No Income Tax Return needed for individuals having income below 5 Lakh from FY 2010-11

Individuals having total income up to Rs.5,00,000 for FY 2010-11, after allowable deductions, consisting of salary from a single employer and interest income from deposits in a saving bank account up to Rs.10,000 are not required to file their income tax return. Such individuals must report their Permanent Account Number (PAN) and the entire income from bank interest to their employer, pay the entire tax by way of deduction of tax at source, and obtain a certificate of tax deduction in Form No.16.

Persons receiving salary from more than one employer, having income from sources other than salary and interest income from a savings bank account, or having refund claims shall not be covered under the scheme.

For more details, visit:

http://www.incometaxindia.gov.in/home.asp
http://www.incometaxindia.gov.in/archive/PressRelease_ExemptEfilingSalaryPerson_06232011.pdf

To get an idea about which ITR form to use :