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Saturday, July 18, 2015

Income Tax India - EFile IT Returns for Salaried Employees


Income tax returns filling is an important activity for Income Tax payers in India. The Indian government is trying to simplify the process but still it might be confusion to people. So I have created this blog post to help with Income Tax Self E-Filing.'

Note: The steps mentioned in this blog post are applicable only for "Salaried Employees".

Note: From the Assessment year 2015-2016, you can E-Verify your income tax return. So don’t need to send the printout copy to Income Tax India, CPC office in Bangalore via Postal. One more step to simplify the process :). Keep your AADHHAR number ready.

Last date to file your Income Tax Returns for 2016 - 2017 is July 31 2017 (Usually gets extended to August 31) but do not wait for the last date, Income tax India website might be loaded with high usage.

Let’s Start...

Preparation

1.   Use IE / Chrome browser

2.      If you have AADHAR Card, keep it ready

3.      Set aside 1 – 1.30 hr. without any disturbance

4.     Get Form 16 from your Employer’s web site,

      2014 onwards Form 16 has two parts.
                                                    i.     PART A => Employer TDS details
                                                   ii.     PART B => Usual Form 16.
5.      Form 16 is a digitally signed PDF, In your PDF viewer, Make sure you trust the Signer’s digital signature and get green tick mark.
a.      Open the PDF in Adobe Reader
b.      If you see Green Tick in all signatures, You are done. Else follow instructions below,
c.      Open the “Signature Panel” (right top corner in the adobe reader)
d.      Show Signer’s certificate -> Trust ->Add to trusted certificates-> tick all the options
e.      In Signature properties dialog box -> “Validate Signature” -> Close
f.       You should see your HR’s digital signature is validated and Green Tick mark
g.      DO NOT proceed without validating Signature, It could be a wrong Form 16.

6.      You need a reliable internet connection during E-File process because it’s an online procedure

7.      If you do not understand any field in Form 16, ask me / google

8.      If you do not have account in https://incometaxindiaefiling.gov.in , Sign up and create an account.

9. Optional: Download Form 26AS from https://incometaxindiaefiling.gov.in -> Login -> My Account -> View Form26 AS. Form 26AS will help you know who are the entities TDS for you and submitted to IT department


E-File Income Tax in India Procedure


a.      Note: At the time of the login, income tax India web site asks for AADHAR number registration,  If you have AADHAR Number, Register it with income tax India, So you can “e-verify” the return. If you don’t have AADHAR, Press “LATER” button to continue.

2.       After Login, Top menu, click "e-File" -> "Income Tax Return"

3.       On the "Income Tax Return" page

               a. Check your PAN number
              
               b. ITR Form Name = ITR1  (for Salaried)

               c. Assessment Year = 2020-21 (Or what is mentioned in the Form  16 under "Assessment Year" column)

               d. Prefill Address => From Previous Return Filed (or appropriate)

               f. Filling Type -> Original /revised Return

               g. Submission Mode -> Prepare and Submit Online

4.      You will see instructions page, Press right Green arrow…

5.      Personal Information page

               a. Check Name , PAN, Address, Mobile No,  and other details

               b. “Employer Category” => Others

               c. "Return Filed .."  => 11 - On or Before...

               d. "Residential Status" => RES-Resident

               e. "Whether Original or Revised Return?" => Original

               f. “Are you governed by Portuguese Civil...” =>  "NO"

               g. Add your AADHAR details

               h. Nature of Employment -> other

               i.  Field "A20"  -> Filed u/s -> 139(1)-On or before due date

               j. Are you filing return of income under Seventh proviso to section 139(1) but otherwise not required to furnish return of income? -> NO
           
               k. Press “Save Draft” and Press Green right arrow

6.       Income Details page

               a. Income from Salary (B1) => Enter Salary amount after House Rent, Medical etc...
                              fill the details by looking in Form 16 Part B

               b. Enter Housing property details (If you have get rent / If you pay house loan)

                        Type Of house Property - "Self Occupied"
Income from One House Property -  Usually negative number from 
                            "Form 16"
7.Add: Any other income reported by the employee

Loss From House Property -<xxxx>

               c. Make sure B4 is correct, Add all the Form 16 “9.Deductions under Chapter VIA” details in B4.

                     Note: If you have multiple 80C categories in the Form 16, Add all the amount and Enter the total.

               e. Make sure C2 (Taxable Total Income) is matching with Form 16's Total income (11)

7.       Check 'Part D - Tax Payable on Total Income(C2) ' data is correct with Form 16 data from field "12.Tax on total income" on wards

8.       Don't worry about the D9, D10 and D11 , Its not for Salaried folks. It will not be taken for calculations.

9.      Check D12. “Total Tax and Interest”, It should match with Form 16’s “17.Tax Payable(15-16)”

a.      Don’t worry is your employer paid few rupees extra tax, It might have happen during rounding process at the time of tax payment (4 times in a year, So high chance that your employer paid 4Rs extra tax!!).

10.   Save Draft -> Click “Right Green Arrow”

11.    Tax Details Page

a.      Enter / Check the details as per the Form 16 PART A (Totals)
b.      Add / Delete additional tax deducted by Banks / Any other source of income other than your employer

               b. Press “Save Draft” -> Green right button

12.   Tax Paid & Verification details page

               a. Check D11 match with Form 16's “17.Tax Payable(15-16)”. If excess tax paid  , "D13. Refund" field will show the excess amount

               b. Enter Bank account details - Its mandatory

                       Note: Add one bank account details, preferably salary bank account details in “a) Bank Account in which …”
                             
Total Number of saving and current bank account … = 1 (or more if you want to disclose other bank accounts that you may have)

               c. Capacity as "Self", Enter Place

             d. I would like to e-Verify... (First option , if you are going to use AADHAR based verification. This is simple and recommended)

               d. Press Green right button

Note: In this page, you can also check for any tax refund details.


13.    Enter details of 80G, if you have any donation

14.   Save the Draft

15.   Check every page and details again

16.    Press "Submit"

17.    Press "OK”, “E-Verify Returns Page appears”

18.   If you have AADHAR card with Mobile Account linked Select “Option 3”

19.   OTP will be send to your AADHAR registered Mobile Number, Enter the OTP PIN number and Submit

a.      Note: The OTP is valid only for 10 Mins

20.   Your “IT-Returns” is successfully E verified. You can download the Acknowledgement now.
  
  a. Click top menu "Dashboard"
b. Click "View Returns / Forms"
c. Click last filed year "Ack.No" , Status shoule be "Successfully e-Verified"
d. Click "ITR-V / Acknowledgement"


In the Top Right side Find "Logout" (Yellow Color) and click to quit

21.   Open the Acknowledgement PDF and check the details (Store the PDF in local machine for future reference)

a.      Note: Password is (all small letters)< YOUR_PAN_NUMBER> <Your_Date_Of_Birth_In_the_format_of_DDMMYYYY>

22.   You are DONE. Your ITR is E Verified, So No need to take printout and send for CPC. Wait for mail from IT department with processed ITR details attached as a PDF. Usually, you will be receiving SMS from Indian IT department after they have processed the ITR. You will also receive an Email.


If you don’t have AADHAR Number

1.      Select appropriate option in Step #18 above

2.      If you need to send ITR Acknowledgment to CPC, Here is the tips

a.      Take print out in an A4 Sheet Laser printer

b.      Check the details and Sign It

                              Leave the “in my capacity as ______________" field blank in the ITR-V declaration.

c.      Send to following address within 120 days via Indian government postal service only,

               Income Tax Department - CPC,
              Post Box No - 1, Electronic City Post Office,
              Bangalore - 560100, Karnataka

Done :)

16 comments:

  1. Great tips and information on income tax is shared here by the author. Thanks for the useful informative post.
    Income Tax Return Online

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  3. I just completed, very useful I spent 45 min. to complete, and lot of worries like tallying 3 Rs. I was worried,
    I understood later not to worry, Good Bakki, keep it up.

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  6. always you rock man ... Good Bakki... Keep it up

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  7. Thanks Bakki, Rocks as usual...
    1 small comment - Pls keep point 9.a. (" Dont worry if your employer..) before point 7("check part D..."), I took some time to check why its not matching ;)

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