Table of contents

Income Tax Returns: All you need to know

Last 3 days to file I-T returns: 7 changes you must be aware of

04

Deadline for filing I-T returns nears: 5 things you must know

06

Follow these 10 steps for filing your income tax return online

08

What happens if you miss the 31 July deadline to file tax returns

10

What NRIs need to know about filing Income Tax Returns

12

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Income Tax Returns: All you need to know

Copyright 2012 Firstpost

changes you must be aware of

Last 3 days to file I-T returns: 7

Bindisha Sarang, July 29, 2013

hange is inevitable except from the vending machine, is a funny internet one-liner. But, at times a few minor changes do impact life, take for instance the ones in filing your income tax returns (ITRs). As usual, this year too the income tax (IT) department has brought about a few such changes which you have to be aware of while filing your ITRs. To know more, read on.

income exceeding Rs 5,000, you will have to choose the ITR2 form. Common examples of exempt income, is interest earned from Public Provident Fund (PPF), dividend earned from shares, interest earned form tax free bonds and the like. So, ensure you choose the correct form, you can get more info here. * Last year, the IT department had said that all those who hold foreign assets have to compulsorily e-file. You had to provide details of all foreign assets on the form and this was brought about with a new schedule in the ITR2 and ITR4 forms. This year, you will have to give details of all income earned from foreign countries on your relevant the ITR form. This is over and above the declaration of all foreign assets which you have to declare on your ITR form. * There is a change in the declaration of assets and liabilities for business people.

h* The most important change this year is If you earn income from business or profeswith compulsory e-filing. sion and your total income exceeds Rs 25 Lakh, you have to provide the details of all your perFiling returns online was compulsory for firms, sonal and business assets and liabilities in the companies and individuals earning more than ITR form itself. This is for people filling in ITRof Rs 10 lakh last year. This limit has been 3 and ITR-4, said Gupta. brought down to Rs 5 lakh this year, that is assessment year 2013-14. E-filing is compulsory * The budget for 2011-12 had added a new for people earning more than Rs 5 lakh. This is section 80 TTA in tax rules, under which total income i.e. income amount after claiming you will be able to get a tax benefit for interest tax deductions such as Section 80 deductions, income of up to Rs 10,000 from savings acsaid Archit Gupta, Founder, Cleartax.in, an counts in any bank. For this, you just need to online e-filing portal. So, if you fall in this catdeclare you interest income. Keep in mind, its egory, you can e-file your ITRs at the tax depart- for savings account and not for savings-cum-FD ments website or use portals like Cleartax.in, accounts aka sweep-in accounts. Taxspanner.com, or Myitreturn.com, to name a few. *Another minor, but important change comes in the bank account detail that you * Another change is in the forms you have to provide on the ITR form. have to fill. From this year, you dont need to provide the While choosing the form many choose the ITR 9 digit MICR number, instead you will have to 1 form, but going forward if you have exempt give your branchs IFSC code. You can get this
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code from your banks website. Also, if you are eligible for a refund, you can also get it directly transferred (ECS) into your account. But you have to provide a 11 digit bank account number. If your bank account number is not 11 digits, then you will receive the refund via a cheque at your mailing address. * And finally, from this assessment year, you can claim within the existing limit a deduction of up to Rs 5,000 for preventive health check-up. So if you have done any kind of preventive health check-ups, like blood tests and the like, keep the bills and you will be able to use the same to get a tax deduction. There is a good possibility youve missed claiming this deduction, make sure you make use it while filing returns. These are a few changes you should be aware of while filing tax returns. The IT department is getting stricter by the day. We suggest you take the help of a tax professional or tax portal to ensure you get it right.

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Deadline for filing I-T returns nears: 5 things you must know
The truth is if we start counting all the possible mistakes which can happen, the list would run into pages. So heres a quick list of some of the common mistakes that people make.
Bindisha Sarang, July 23, 2013 * Compulsory E-filing: If you have taxable income above Rs 5 lakh, you will need to e-file your ITR online from this year. Last year, the limit was Rs 10 lakh. So, ensure you abide by the new rule. * Ensure that you dont make a mistake by choosing the incorrect form, for instance: ITR1 (Sahaj) is for tax payers with income from salary, renting of one house and interest from other sources. From this year onward, income from winnings (lotteries and like) does not come under this category. More importantly, if you have any assets abroad or if you have incurred any kind of losses under the head income from other sources, you should not choose this form. ITR2 (Sahaj) is for individuals and HUF with income from salary, renting of more than one properties, capital gains, and interest income which includes winnings. This form is not for those who have income from business or professions. ITR4 (Sahaj) is for taxpayers with income from business and profession, and those who have income from any other head, including income from foreign assets. * Submit all Form 16: If you have changed jobs, ensure that you collect the Form 16 from the past employer as well. There is a good possibility that your past employer too has deducted tax, which means you could have paid extra tax. Hence you might just be eligible for a refund if you submit all the relevant Form 16 documents.
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irstpost Investing Deadline for filing I-T returns nears: 5 things you must know by Bindisha Sarang Jul 23, 2013 #Form 16 #Income tax #IT returns #PersonalFinance 500 3 CommentsEmailPrint Mistakes you commit while filing your income tax returns (ITR) could cost you dear. Especially, in these days of advanced technologies which the IT department utilise to find out about about your finances. The truth is if we start counting all the possible mistakes which can happen, the list would run into pages. So heres a quick list of some of the common mistakes that people make. We suggest you take a printout and keep it handy while filing your returns online. If you have changed jobs, ensure that you collect the Form 16 from the past employer as well.

* Be careful with email address: Never use your office email address on the ITR form. If you change jobs in the future, you wont have access to that email address. Giving your office email ID on ITR form is one of the dumbest mistakes you could ever make. * Submit all information regarding income from other sources information: It becomes imperative that you declare all the income you earn even from other sources like capital gains even if such income is not taxable. Also mention income from other sources, right from sale of house property as well as rental income. Ensure, you collect all the relevant documents for financial institution well in advance, to avoid last minute hassle. * Sending e-filing acknowledgement on time: Once you file the returns, you get an ITR -V acknowledge, which you need to submit to the IT departments Bangalore office within 120 days. First mistake many make is that they forget to send the ITR V acknowledgement within the deadline. Another thing you need to keep in mind that you need to send it via post or speed post and not courier. And thirdly, you need to sign the acknowledge in blue ink and not black. * Double check numbers: If your agent is filing the form for you, ensure you check it before submitting. Even spelling mistake could cost you later. Next is to ensure there are no typos, especially in the PAN, TAN number. There is a good possibility you could be fined for a wrong entry. So double check all numbers once before submitting the form online. Even the IFSC number of your bank, if you are expecting a refund. These are just a few things you need to keep in mind for error free online filing of returns. IT department is getting stricter by the day. So ensure that you do the e-filing of return carefully. PS: Keep tracking this space, tomorrow we bring you changes in ITR process this year.

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Follow these 10 steps for filing your income tax return online
he last date for filing tax return for financial year 2012-13 for individuals is 31 July 2013. Individuals earning above Rs 5 lakh are now required to file their tax returns electronically. Last year this limit was Rs 10 lakh. Here is a quick 10 steps guide to file your tax return Step 1: Create your e-filing account In order to create an e-filing account, you should visit the Income Tax website https:// incometaxindiaefiling.gov.in and click on Register Yourself which will prompt you to fill your personal details. Once your e-filing account is created, login to your account with your user ID (ie PAN) and password.

Vineet Agarwal, July 29, 2013 Step 3: Download the income tax return form Click on the Download ITR link which is also displayed under the Quick Link menu on the left hand side of the screen. Thereafter download the income tax return form. ITR 1 should be downloaded by individuals earning salary income / pension; or individuals having one house property income; or individuals having income from other sources (excluding lottery income and income from race horses). However, in case of an individual having income from more than one house property, capital gains or is an ordinary resident having assets abroad or claiming tax treaty benefit, then ITR-2 should be downloaded. After downloading the income tax return form, a zip file will be saved on your computer. Step 4: Fill the details in the Tax return form Extract the excel form utility from the downloaded zip file and enable the macros in the Excel form. Carefully follow the instructions and fill the following details: Mention the basic details which include your name, PAN, complete address, date of birth, e-mail ID, mobile number, whether the return is original or revised, and residential status.

Step 2: Download Form 26AS Click on the View Form 26AS (Tax Credit) link displayed under the Quick Link menu on the left hand side of the screen to generate Form 26AS. Form 26AS is a consolidated tax statement issued to a tax payer which summarizes the amount paid against each PAN number. It summarizes the TDS, Advance tax, Self assessment tax paid in your name. The password to open your Form 26AS is your date of birth in ddmmyyyy format.

Fill the details of income earned and deductions claimed under Chapter VI-A. You can refer to your Form 16 and Form 26AS. However, you will also be required to report any other income or investment eligible for deduction which was not reported to your employer. Enter the details of tax deducted by the employer and other deductors and self-assessment / advance tax paid, if any. Enter your bank details, which include your bank account number, preferred mode of receiving any refund amount (ie by cheque or
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direct deposit), type of bank account and IFSC code. Step 5: Validate the details Click on the Validate button provided on all the sheets. This ensures that all the details have been captured in the return. In the case you omit anything; the sheet will automatically prompt you to fill in the missing details. Step 6: Calculate your tax liability Click on Calculate Tax after you have filled all the details. In case the return form shows any tax payable, then you should deposit the amount and enter the challan details in the return form. Step 7: Generate the XML file Once all taxes have been paid, click on the Generate XML tab and save the xml generated file on your computer. Step 8: Submit the income tax return You should go to your e-filing account on the income tax website and click on Upload Return. Fill the ITR Form, Name, Assessment Year. Thereafter upload the XML file and click on Submit. After this an ITR-V will be generated and sent to your e-mail ID mentioned in the tax return. ITR-V is an acknowledgement-cumverification form. Step 9: Send the signed ITR-V to the Income Tax Department You should take a print of ITR-V and sign it in blue ink. Therafter you should send it by ordinary post or speed post to Income Tax Department CPC, Post Bag No 1, Electronic City Post Office, Bengaluru 560100. The signed ITR-V should be sent within 120 days of uploading the return. Step 10: Check the ITR-V receipt status On receipt of the signed ITR-V, the Income Tax Department will send an e-mail acknowledging the receipt of ITR-V to the e-mail ID mentioned in the tax return. You will also receive an SMS

on your mobile number acknowledging the receipt of tax return. (The author is a Director in KPMG. The views expressed are personal)

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What happens if you miss the 31 July deadline to file tax returns
There are options for those who havent filed their returns on time. The IT department gives up to two financial years as grace period.

Anil Rego, July 23, 2013 permitted to file returns up to a maximum of 2 financial years from the year of the return, i.e. if the returns for 2010-11 are not filed, one has time till March 2013 to file the returns.

t is that time of the year when filing of tax returns is on top of everybodys mind. The Central Board of Direct Taxes (CBDT) has from the current year made it mandatory for individual salaried income tax payers to file their returns online if their income exceeds Rs 5 lakh per annum. The deadline for filing taxes for salaried people is 31 July, and the major concession for e-filing for this category of tax payers is that there is no need to get a digital signature. One needs to file their taxes online and should sign and send the verification form to the Central Processing Unit in Bangalore. Those earning less than Rs 5 lakh a year from salary and having less than Rs 10,000 per annum as interest on deposits and bank accounts will be exempt from filing taxes. However, this comes with certain conditions, such as their employer has made the mandatory TDS payments to the government, and one has remained in the same job through the financial year. If one is liable to file taxes (even if not to pay them) and has not filed them in time, there is a penal interest of 1 percent per month charged, hence it is better to ensure early payment and filing of taxes. But, what happens if one does not file their returns on time? Is there a method to sort out the issue of late or non-filing? The IT department gives up to two financial years as grace period (with the second financial year carrying a Rs 5,000 fine). There are actually quite a few options for those who have not filed their returns on time, or for those who have not filed returns for the previous years. Ideally it is possible to avoid paying any penalty to the government if one does not owe any taxes, as late filing (not late payment) does not incur any penal payments. One is

There are certain clauses attached to the delayed filing. Capital losses cannot be carried forward unless they are filed in the tax returns before 31 July. Also, revised returns are not permitted, meaning any mistakes in the filing can be taken as a tax offense. The only capital loss that is permitted to be carried forward despite late filing of returns is loss on sale of house/ property. However, there is a discretionary penalty of Rs 5,000 if the tax return is filed more than one financial year after the assessment year, i.e. if the returns for 2010-11 are filed in 2012-13 then a fine of Rs 5,000 is applicable, but if the same returns are filed by 2011-12 there are no fines. This fine of Rs 5,000 is at the discretion of the assessing officer. There are other financial implications such as the penal interest of 1 percent per month (calculated on simple interest basis) that is levied
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on any tax that is due and not paid by the due date, this will be in addition to the 1 percent per month interest on non-payment of advance tax (for amount due after calculating TDS, amounting to over Rs 10,000). For example, if an individual has a net tax payable of Rs 2,00,000 and has paid Rs 1,60,000 through TDS and Rs 30,000 as advance tax then the outstanding amount is Rs 10,000. For this outstanding amount of Rs 10,000, he will have to pay a penalty of Rs 100/- which is 1 percent of that amount for each month delayed beyond 31 July in case the return is filed by 31 March 2014. Thus the net tax payable if paid in October 2013, will be Rs 10,000 + 3 percent of Rs 10,000, which is Rs 10,300. However, if the same return is filed after 31 March 2014 in the month of April 2014, then there will be an additional penalty of Rs 5,000 (as applicable in the previous case) making the total amount payable as Rs 10,000 + Rs 5000 + 9% of Rs 10,000, which is Rs 15,900. These provisions for late filing and additional penalty clauses are detailed in the section 234 of the IT Act. One can, however, claim for a tax refund even if the returns are filed late. But this will result in the refund being delayed and receipt of the refund could take a very long time. Apart from this, there are other practical aspects that mandate that IT returns should be filed on time, such as requirement of IT papers for bank accounts, visas, bank loans, etc. Hence, it is always advisable to ensure that ones returns are filed well within time to avoid unnecessary hassles and penalty payments. Summary: There are options for those who havent filed their returns on time. The IT department gives up to two financial years as grace period (with the second financial year carrying a Rs 5,000 fine). An interest of 1 percent per month (calculated on simple interest basis) that is levied on any tax that is due and not paid by the due date. Capital losses cannot be carried forward unless they are filed in the tax returns before 31 July. The author is CEO & Founder, Right Horizons, an investment advisory firm.
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filing Income Tax Returns

Filing of income tax returns is no rocket science, thanks to e-filing options available out there. And you must already know that 31 July is the deadline to file your returns for 2012-13. But what if you are a non-resident Indian (NRI) or a person of Indian origin (PIO), does the 31 July deadline apply to you as well?

What NRIs need to know about

Anil Rego, July 23, 2013 iling of income tax returns is no rocket ately previous year has to be 185 days or more science, thanks to e-filing options availto make him a resident in India. If you are do able out there. And you must already not know your residential status, this calculator know that 31 July is the deadline to file your from Taxspanner.com will help you find out. returns for 2012-13. But what if you are a nonresident Indian (NRI) or a person of Indian origin (PIO), does the 31 July deadline apply to you as well?

Know whos an NRI/ PIO: But before answering that question one must know who an NRI is. FEMA and income tax department define NRI differently. So it is important to know whos an NRI as per the income tax rules, says Balwant Jain, chartered accountant and CFO Apnapaisa.com. Your residential status is a very important parameter while filing returns. You could be a PIO, but if you have stayed in India for certain number of days you become a resident. Likewise you may be an NRI, but if youve stayed in India more than certain number of days, you become a resident. For the purpose of Income Tax Act a person is treated as resident in India if he satisfies any of the following conditions. In the relevant year, he has been in India for 182 days or more. This is calculated with reference to financial year i.e. 1 April to 31 March. Even if the person has not stayed in India for 182 days or more in the relevant year, he will still be resident if he has stayed here for a total of 365 days in the preceding four years and was in India for 60 days during the relevant year, Jain says. For a Person of Indian Origin who comes to India for a visit, the period of stay in immedi-

Who all should file returns: Of course your residential status does impact your taxability. NRIs have a basic exemption limit of Rs 2 lakh. In fact, if you are above 60 years, your exemption limit is Rs 2.5 lakh. If you exceed these limits, you definitely need to file income tax returns in India. The same is the case if you have any kind of rental income, or gains from property transactions or sale of assets/ investments. 5However, for NRIs, there is a 15 percent TDS (plus 3 percent cess) on short-term capital gains from shares and mutual funds if the securities transaction tax (STT) has been paid. If no STT has been paid, the TDS rate is higher at 30.9 percent. They are even subjected to a 10 percent TDS on long-term gains from shares and mutual funds, says Sudhir Kuashik, CEO, Taxspanner. com.
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Even if you have to claim any tax deducted at source (TDS) or have availed of a home loan, you will have to file your returns. Of course, there are exceptions where you need not file returns as NRIs, do check with your chartered accountant for more details. What NRIs dont get: Keep in mind that NRIs do not get the same kind of deductions or exemptions like the residents. NRIs cannot adjust the taxable capital gains against the basic exemption limit. So as an NRI if you earns Rs 2 lakh capital gains, you will have to pay tax at applicable rates for the full amount even if you have no other income, says, Kaushik. He further adds that as NRIs you dont get deduction under a number of sections such as residents. A few sections are 80 CCG (Rajiv Gandhi Equity Saving Scheme), 80 DD (disability tax benefit), and 80 DDB (medical treatment tax benefit) to name a few. In short, filing of returns for NRIs is not rocket science either. We recommend you get in touch with a tax consultant or an online portal which offer online income tax returns filing packaged specially designed for NRIs.

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