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NEW INCOME TAX RETURN FORMS BY VARUN TANEJA FCA, LLB, DISA (ICAI)

NEW INCOME TAX RETURN FORMS BY VARUN TANEJA FCA, LLB, DISA (ICAI). FILING MANDATORY BY DUE DATE. ANY FIRM WHICH IS CLAIMING DEDUCTION UNDER FOLLOWING SECTIONS MUST FILE RETURN ON OR BEFORE DUE DATE. FAILURE TO DO SO NO DEDUCTION WILL BE ALLOWED. 10A 10B 80 IA 80 IB 80 IC. ITR - 5.

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NEW INCOME TAX RETURN FORMS BY VARUN TANEJA FCA, LLB, DISA (ICAI)

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  1. NEW INCOME TAX RETURN FORMS BY VARUN TANEJA FCA, LLB, DISA (ICAI)

  2. FILING MANDATORY BY DUE DATE • ANY FIRM WHICH IS CLAIMING DEDUCTION UNDER FOLLOWING SECTIONS MUST FILE RETURN ON OR BEFORE DUE DATE. FAILURE TO DO SO NO DEDUCTION WILL BE ALLOWED. • 10A • 10B • 80 IA • 80 IB • 80 IC

  3. ITR - 5 • FORM NO-5 TO BE USED BY PARTNERSHIP FIRMS,ASSOCATION OF PERSONS,BODY OF INDIVIDUALS.

  4. ITR - 5 • FORM 5 IS INCULSIVE OF FRINGE BENEFIT TAX RETURN. • IN CASE OF ASSESSES WHERE REGULAR BOOKS ARE NOT MAINTAINED THEY ARE NOT REQUIRED TO FILL ITEM NO 1-51 OF PROFIT & LOSS ACCOUNT • IN CASE OF QUANTITATIVE DETAILS TO BE GIVEN IT IS REQUIRED TO GIVE DETAILS OF THE MAJOR ITEMS ONLY.

  5. ITR - 5 • IN CASE OF AN ASSESEE LIABLE FOR TAX AUDIT THIS FORM IS TO BE FILED ELECTRONICALLY INCULDING TAX AUDIT REPORT. • YOU HAVE TO MENTION THE 3 MAJOR AREAS OF ACTIVITES OF THE ASSESSEE ALONG WITH CODE NUMBER

  6. ITR - 5 • IN CASE OF ASSESSES LIABLE FOR VAT/EXCISE ,SERVICE TAX THE SALE PURCHASE FIGURES ARE TO BE REPORTED WITHOUT EXCISE,VAT i.e. VAT INPUT,VAT OUTPUT,CUSTOM DUTY,COUNTER VAILING DUTY, SERVICE TAX TO BE REPORTED SEPARTELY.

  7. ITR - 5 • IN CASE OF SALARY PAYMENT TO EMPLOYESS FOLLOWING HEADS TO BE INTIMATED SEPARTELY – • SALARY • BONUS • PAYMENT TO APPROVED SUPER ANNUATION FUND/RETIREMENT PLAN

  8. ITR - 5 • INSURANCE EXPENDITURE TO BE SHOWN WITH FOLLOWING DETAILS – • MEDICAL • LIFE INSURANCE • KEYMAN INSURANCE

  9. ITR - 5 • IN CASE OF AN ASSESSEE HAVING INCOME FROM MORE THAN 3 HOUSE PROPERTIES THEN SEPARATE SHEET TO BE ATTACHED FOR THE SAME

  10. ITR - 6 • FORM NO-6 TO BE USED BY COMPANY ASSESSES INCULSIVE OF FRINGE BENEFIT TAX RETURN • NO LOSS TO BE ALLOWED TO BE CARRIED FORWARD IF THE RETURN IS NOT FILED ON DUE DATE. • RETURN TO BE FILED ELECTRONICALLY ONLY. ALL COMPANIES ARE REQUIRED TO FILE THERE RETURN OF INCOME IRRESPECTIVE OF LOSS OR PROFIT.

  11. ITR - 7 • ITR FORM –7 IS USED BY THE ASSESSEE’S LIABLE FOR FILING U/S 139 (4A), 139(4B),139(4C) AND 139(4D).

  12. ITR - 8 • ITR-8 IS THE RETURN FOR FRINGE BENEFIT TAX FORM IT CAN BE USED BY ANY ASSESSEE WHO WANTS TO FILE THE FRINGE BENEFIT TAX RETURN SEPERATELY.

  13. ITR - V • ITR-V INDIAN INCOME TAX RETURN VERIFICATION FORM TO BE USED WHERE THE RETURN OF INCOME/ FRINGE BENEFITS IN FORM ITR-1, ITR-2, ITR-3, ITR-4, ITR-5, ITR-6 & ITR-8 TRANSMITTED ELECTRONICALLY WITHOUT DIGITAL SIGNATURE.

  14. Due Dates for Filing of Income Tax Returns • For Individuals, Firms, Trusts, AOP, BOI, Coo-operative Societies and Local Bodies (Other than those who are required to get their accounts audited) is July 31,2007 and for Companies and others, It is October 31,2007.

  15. Consequences for not filing tax return by the last date • If individuals file their returns after the last date mentioned above, they will he charged a penal interest at the rate of 1% per month of delay on the taxes, if any remaining unpaid. However, if such a return is filed after March 31, 2008 , apart from the penal interest, they will also be liable for a penalty of Rs 5,000.

  16. How to file the tax return • At present there are two options available to the individuals to file their return of income: Electronic filing and Physical filing

  17. Mandatory e-filing • It is mandatory for Companies and firms who are required to get their accounts audited under the Income Tax Act,1961 to file their returns through Electronic Filing only.

  18. Software for e-filing • The CBDT has initiated the Process of getting the Software's for filing Returns online ready and they are expected to be ready by 2nd Week of July, 2007

  19. Procedure • Under Electronic filing, the individual will have to follow the following procedure – • Get the tax return in a valid XML format (through the Income Tax department site or other online tax preparation sites) • Visit the Income Tax sitehttp://www.Incometaxindiaefiling.gov.in

  20. Procedure • Log on using the user-ID and password (username is usually the 10 digit PAN No.) • Select the respective ITR form • Upload the XML file generated • Upon uploading, an acknowledgement will be generated.

  21. Procedure • If the file is uploaded with a digital signature, then the process of filing return is completed. • However if the file is uploaded without a digital signature, the individual will have to print form ITR-V and submit the same to the Income Tax department physically. The process of filing return will be completed only on physical filing of ITR-V.

  22. Filing of ITR return in Physical Form In case of Physical filing, one has to take a print out of the respective ITR form along with the Acknowledgment form and file it with the Income Tax Officer.

  23. No documents to be attached • Whether it is electronic filing or physical filing, under the new procedure, individuals do not have to attach any documents or enclosures with the return of income, except a Report on Transfer Pricing, which needs to be attached along with the acknowledgement.

  24. Filling Instructions • Kindly go through the Instructions thoroughly before filling the forms and fill in all the proper codes wherever applicable. Fill all the columns and in case some column is not applicable just mention NA or 0 (Zero). • It thus becomes very important to scrutinize the forms properly before submitting, so that one can ensure that no part of the form is left unfilled or not properly filled, which may lead to several consequences under the Income Tax Act, 1961.

  25. Annual Information Report • In case of Individuals and HUF it is also important to fill in the details of transactions reported through Annual Information Report (If any) like - • Cash deposits aggregating to ten lakh rupees or more in a year in any savings account maintained in a banking company to which the Banking Regulation Act, 1949 (10 of 1949), applies (including any bank or banking institution referred to in section 51 of that Act)

  26. Annual Information Report • Payment made against bills raised in respect of a credit card aggregating to two lakh rupees or more in a year. • Payment made of an amount of two lakh rupees or more for purchase of units of Mutual Fund. • Payment made of an amount of Rupees Five lakhs or more for acquiring bonds or debentures issued by a company or institution • Payment made of an amount of Rupees One Lakh or more for acquiring shares issued by a company.

  27. Annual Information Report • Purchase of any immovable property valued at thirty lakh rupees or more. • Sale of any immovable property valued at thirty lakh rupees or more. • Payment made of an amount of five lakh rupees or more in a year for investment in bonds issued by Reserve Bank of India.

  28. Documents to be preserved • Since the tax - payer is not required to submit any additional documents along with the return of income, the documents may be called at the later stage by the Income Tax Officer to check the correctness of the claim made. Hence, It is advised that the individual preserve all the documents required to substantiate the return of income filed.

  29. Documents to be preserved Documents to be preserved are enumerated below: • Detailed calculation of taxable income and amount of tax payable/refundable. • Balance Sheet and Profit and Loss (If any prepared) • Audit Reports • Tax Audit Reports • MAT Report under section 115JB

  30. Documents to be preserved • Form No. 16 / 16A (original) • Counterfoil of all the tax payments made during the year. • FBT Challans. • Computation of FBT • Computation of depreciation under Income Tax Act, 1961

  31. Documents to be preserved • Copy of documents concerning sale of investments and properties. • Copy of bank statements. • Copy of proof for all the deductions and exemptions claimed in the return of income (viz. PPF Challans, LIC Premium Receipts, Mediclaim Receipts to name a few)

  32. Common mistakes people make while filing tax returns • The most common notion among salaried employees is that since tax has already been deducted from their salary, there is no need to file their income tax returns. This is not at all true or legal. Even though tax has been deducted and there is no further liability to pay tax, an employee has to compulsorily file his / her income tax return. Form No. 16 received from employer is not their income tax return. • Employees do not include the interest that they receive on their savings bank account. The entire interest earned on your savings bank account is taxable.

  33. Common mistakes people make while filing tax returns • Omission of income received by a minor child. A minor child is not required to file a separate return of income. However, this income has to be included in the hands of either of the parents, although it might be a small amount of bank interest.

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