Thursday, October 13, 2011

How to file Tax Returns Online

The filing dates for tax return are just around the corner. With the introduction of e-filing or online filing of tax returns, the task has become much easier than it used to be earlier. E-filing of tax returns is a simpler options for the direct tax payers in India. There are three ways in which e-filing of tax returns can be done online:
E-filing using a digital signatures. If you use this method then there is no need for a paper return to be submitted. If you don’t have a digital signature, don’t worry and read next 2 ways.

E-filing without the digital signatures. By this option the ITR-V form has to be filled and signed. This form is a one-page receipt and act as a verification form.

Take help from an E-filing intermediary who will do most of the task for you and makes your e-filling very easy.

Requirements to start e-filing of tax-returns

1) You need a banking account with net-banking facility.

2) Register with this website and create a user name and password. You
will be required to enter your PAN card number. Your address details will be picked from the IT department database based on your PAN number.

3) Enter other personal details. The email address is important as all communication will be done through the email id. Be careful about entering the correct personal details.

4) Once you register, an e-mail will be sent confirming registration and you have to activate your account. Once this is done, you are ready to file your income returns online. You must now download the appropriate ITR form.

Last date for filing returns

The last date to file your returns is July 31, 2011. For those who need to get their account books audited under the Income Tax Act, the last day is October 1, 2011.

Wednesday, October 12, 2011

Which Banks offer e-payment facility?

The following Banks allowed e-payment facility:

1. Axis Bank

2. State Bank of India

3. Punjab National Bank

4. Indian Overseas Bank

5. Canara Bank

6. Indian Bank

7. Bank of India

8. Corporation Bank

9. State Bank of Bikaner & Jaipur

10.State Bank of Travancore

11.State Bank of Indore

12.Vijaya Bank

13.HDFC Bank

14.Oriental Bank of Commerce

15.State Bank of Patiala

16.Bank of Baroda

17.IDBI Bank

18.State Bank of Mysore

19.Bank of Maharashtra

20.State Bank of Hyderabad

21.State Bank of Saurashtra

22.Union Bank of India

23.Allahabad Bank

24.Dena Bank

25.Syndicate Bank

26.ICICI Bank

You can make tax-free investments upto Rs.1 lakh

You can make tax-free investments upto Rs. 1 lakh under following schemes

1. Life Insurance Premiums
2. Contributions to Employees Provident Fund/GPF
3. Public Provident Fund (maximum Rs 70,000 in a year)
4. NSC (National Savings Certificates)
5. Unit Linked Insurance Plan (ULIP)
6. Repayment of Housing Loan (Principal)
7. Equity Linked Savings Scheme (ELSS) of Mutual Funds
8. Tuition Fees including admission fees or college fees paid for full-time education of any two children of the assessee (Any development fees or donation or payment of a similar nature shall not be eligible for deduction).
9. Infrastructure Bonds issued by Institutions/ Banks such as IDBI, ICICI, REC, PFC etc.
10. Interest accrued in respect of NSC VIII issue.
11. Pension scheme of LIC of India or any other insurance company.
12. Fixed Deposit with Banks having a lock-in period of 5 Years

Apart from that, you can invest additional Rs. 20K in infrastructure bonds. So, total tax-free investments can be Rs 1,20,000.

Now Income Tax Refund Through ATM

Good news for every taxpayee whose Income Tax Refund claimed at Income Tax Department but they till not got their Income Tax Refund amount. Now, the Income Tax Department tying-up with Banks for providing this facility to get Income Tax Return through ATMS. The Income Tax Department provide facility only for tax deducted at source (TDS) to view details through internet banking and payment of tax should paid at ATMs (automated teller machines), the income tax department is planning to take the convergence of banking and tax services to the next level. The department plans to give taxpayers the facility of applying for tax refunds and tax credits through ATMs.

Taxpayers will also be able to check the status of their refund applications at ATMs. They will also be able to spot mistakes they may have made while filing for refunds/credits. In future, taxpayers may also be allowed to file returns through the banking channel. “The revenue department plans to expand collaboration with banks. Taxpayers will be able to apply for refunds and get them through ATMs.

They may also be allowed to file returns through ATMs. The idea is in initial stages, but some Nordic countries such as Sweden have already implemented it,” a finance ministry official told Business Standard . The department expects these measures to increase tax compliance and collections, besides making the interface between the government and taxpayers more efficient and transparent. For this, the department is ramping up its information technology (IT) infrastructure.

The finance ministry has approved the setting up of two special purpose vehicles. One is called the Goods and Services Tax. The second is called the Tax Information Network. While the government will concentrate on policy formulation and enforcement, the NIUs will focus on implementation of IT systems.

The revenue department has already allowed banks to display Form 26AS of taxpayers on their internet banking portals. FORM 26AS IS a consolidated statement of a financial year and has details of TDS, tax collected at source and advance tax/self-assessment tax/regular assessment tax deposited in the bank. It also includes refunds received during a financial year. The form is available only from assessment year 2005-06. The facility of paying income tax through ATMs, launched earlier this year, is being provided by many banks, including Oriental Bank of Commerce, Union Bank of India, Corporation Bank and Axis Bank. Most were already accepting tax payments at their branches and portals.

Income Tax Calculator Free Download

Due to heavy workload The "SOFT CORNER" developes very easy Income Tax Calculator for Assessment Year 2011-2012, which is excel base. This calculator save your time and labour work just entered correct information and get correct result.

10 Easy Steps for e-filing of Annual Income Tax Return

Every Income Tax payee should have save time by e-filing of income tax return. This job is completed within 15 minutes and it is very easy. Regarding e-filing of Annual Income Tax Return tax payee well know about its procedure that how to process for e-filing of Income Tax Return. This process is very smooth and easy. These processes are save your time, right price and take other benefits. The tax payee should take place the following 10 steps regarding this procedure:

Go to the website of directorate of income tax, India, and register yourself, that is if you are not registered already. As you register, you need to fill in your PAN number and other details in order to set your login and password.

Once you are done with registration, log out and log in again with your PAN number as user ID and the new password you have set earlier. Click on e-filing A.Y. 2010-11 on the left side and download the e-filing form for INDIVIDUAL, HUF (HUF stands for Hindu undivided family)

The form comes in a ZIP file. Save it to your desktop and extract the Excel file from it to a new folder. Open the excel file and enable macros. Mind you, you have to enable macros in order to complete the process.

Fill in details like Name, Address, City, State, Pin Code in the sheet for INCOME DETAILS; fill in your PAN number wherever required and then fill in details of your income, investments and tax paid as provided to you in the Form 16 as per the instructions on the sheet. Then click on the VALIDATE button to check. If the details are correct. It will show the sheet is ok. (That is if no errors are found).

The next sheet of the file is TDS. Fill in the details for No 23 only if you have income only from salary. If you have income other than salary, fill in details for No 24 also. Fill in details of TAN number, name of company, address, city, state, pin code as given in form 16.

Fill in details of income charged under salaries, deductions from Chapter VI-A, tax payable and tax deducted. All these information is found on your Form 16. Click on VALIDATE button to check for correctness.

Next sheet is taxes paid and verification. Fill in details of name, father’s name, place, date and PAN number under the VERIFICATION section shown in RED. Click validate once again. If all the three sheets are shown OK on validation, you are ready to generate an XML file of the details.

Click on Generate XML and it will ask you to save the file. Once saved, go back to the website and log in (if you are logged out) with your user name and password. On the left side, click on submit return with 2010-11 as assessment year. Upload your generated XML to the site. Your e-filing is done.

It sends you a copy of acknowledgment to your email ID and also allows you to download the acknowledgment by clicking on blue link. The acknowledgment again comes in a ZIP file. Extract the file, take a printout of the PDF file and sign it manually.

Send a signed Acknowledgment to Income Tax Department address shown at the bottom of the PDF file by ORDINARY POST only. You will get a confirmation from IT department within one week. If it’s delayed, you can check out with CPC, Bangalore at 080-43456700 between 9:30 AM to 6 PM between Monday to Friday.

Free Downloads: ITR-1,ITR-2,ITR-3,ITR-4,ITR-5,ITR-6 A.Y 2011-2012

Free Income Tax Return preparation software is Now available from NSDL for submission you ITR-1,ITR-2,ITR-3,ITR-4,ITR-5,ITR-6 of Financial year 2011-. These RPU are excel based and free for download and Unlimited use. As these software are provided by Income tax department, so it authentic software. From these e filing software you can generate Income Tax return for financial year 11-12( Assessment year 2011-12). E_filing in Audit cases is mandatory since last year. Further for companies digital signature is also mandatory. Last date to file return in non audit cases for financial year 2010-11 is 31.07.2011 and for Audit case due date is 30.09.2011.

Click the Form No.

ITR - 1 Free download

ITR - 2  Free download

ITR - 3  Free download

ITR - 4  Free download

ITR - 5  Free download

ITR - 6  Free download

The New Scheme and Procedure of TDS (Form 16/16A) for Assmnt. Year 2011-2012

The obligation to deduct tax at source is upon the person responsible for paying the income/amount which is subject to TDS. Therefore such person i.e. payer has to follow the procedure for deducting the tax. The main responsibilities and procedure of TDS may be mentioned as under:

1. W.e.f. 1-10-2004, the payer has to apply for tax deduction and collection account number (TDCAN) IN Form No. 49B. Prior to 1-10-2004, the assessee had to apply for separate tax deduction account number (TAN) and tax collection account number (TCAN). Where the payer has already been allotted TAN or TCAN, he need not apply for TDCAN.

2. He is to deduct tax from the income/payment mentioned in the various sections i.e sections 192 to 196D.

3. The amount so deducted should be deposited in challan No. 281 within the requisite time to the credit of Central Government. Separate challans should be used to deposit tax deducted under each section and the correct nature of payment code in the relevant column is the challan should be indicated.

4. Tax is to be deducted at the basic rates prescribed under various sections. No surcharge, Education Cess or Secondary and Higher Education Cess(SHEC) is to be added to such basic rate except in he following cases:

(a) Tax deduction form payment of salary, whether the recipient is resident or non-resident. In this case Education Cess and SHEC has to be added to the basic rate.

(b) Tax deduction from payment/credit of any sum (other than salary) to a non-resident other than company. In this case also Education Cess and SHEC has to be added to the basic rate.

(c) Tax deduction from payment/credit of any sum to a foreign company. In this surcharge; Education Cess and SHEC shall have to be added to the basic rate. Surcharge @ 2% (2.5% for A.Y. 2011-12) shall be added only when the amount paid/credit exceeds Rs. 1 crore. As per section 206AA, if PAN is not provided, the rate of TDS shall be the normal rate prescribed or 20% whichever is higher.

5. Payee should be issued certificate of tax deduction at source on or before certain specified date.

6. Lastly, the payer should prepare such statements for such period as may be prescribed and file the same with the prescribed income-tax authority or the person authorized by such authority in such form and verified in such manner as may be prescribed.

Official Notification of No Income Tax Return Up to 5 Lakhs Salaried Person


NOTIFICATION NO. 36/2011 [F. NO. 142/09/2011 (TPL)], DATED 23-6-2011

In exercise of the powers conferred by sub-section (1C) of section 139 of the Income-tax Act, 1961 (43 of 1961), the Central Government hereby exempts the following class of persons, subject to the conditions specified hereinafter, from the requirement of furnishing a return of income under sub-section (1) of section 139 for the assessment year 2011-12, namely :—

Class of Persons

1. An Individual whose total income for the relevant assessment year does not exceed five lakh rupees and consists of only income chargeable to income-tax under the following head,—

A. "Salaries";

B. "Income from other sources", by way of interest from a savings account in a bank, not exceeding ten thousand rupees.


2. The individual referred to in para 1,—

i. has reported to his employer his Permanent Account Number (PAN);

ii. has reported to his employer, the incomes mentioned in sub-para (B) of para 1 and the employer has deducted the tax thereon;

iii. has received a certificate of tax deduction in Form 16 from his employer which mentions the PAN, details of income and the tax deducted at source and deposited to the credit of the Central Government;

iv. has discharged his total tax liability for the assessment year through tax deduction at source and its deposit by the employer to the Central Government;

v. has no claim of refund of taxes due to him for the income of the assessment year; and

vi. has received salary from only one employer for the assessment year.

3. The exemption from the requirement of furnishing a return of income-tax shall not be available where a notice under section 142(1) or section 148 or section 153A or section 153C of the Income-tax Act has been issued for filing a return of income for the relevant assessment year.This notification shall come into force from the date of its publication in the Official Gazette.

Do you know, who are Exempted and not Exempted from IT return submission for Assessment Year 2011-2012

In the interest of public demand, I clarified the following about IT Return submission for Assessment Year 2011-12. Most of employee assumed that, whose Income below 500000.00 they exempt from Income Tax Deduction from the Fin. Year 2011-12, but this thinking is totally worng. Regarding this the Income Tax Department had issued official notification to file Income Tax Return (salaried person) with a few conditions. As per the Income Tax Department notification No. 36/2011, a employee whose Taxable income not exceed Rs. 5 Lakhs (Five Lakhs) in annual, they exempt to file Income Tax Return. The following conditions are clarify/solve your problems:

Who are Exempted from submission of IT Return for A. Y. 2011-12 :

This exemption is available to Individual assessee only (He may be resident or not).
Exemption is available for Assessment year 2011-12.
Total Income(after deduction 80C to 80U) of Individual must be up to Five Lakh Rupees only.
Income must be earned from Salary and/or Saving Bank Interest up to Rs 10000/- . Pension is also covered under salary head.
Individual must have reported his pan to his employer.
He has Earned salary only from one employer during the year.
He has reported his income from saving Bank Interest to his employer for TDS deduction purposes.
Employer has deducted the tax on his Full income,salary plus interest {if any},and tds has been deposited in Govt account by the employer.
No refund is Due to assessee.
Individual has received Form 16 From the employer ,which mention PAN, Income detail and Tax deducted and deposit detail.

Who are not exempted from submission of IT Return for A. Y. 2011-12 :

If His Total taxable income after deduction u/s 80C to 80U is more than 5 (five) Lakh rupees.
If refund is due to Him.
If his total income includes any one of following Incomes

Income from House property Including minus Income from interest on House Loan.
Income from Business/profession;
Income from capital gain;
Income from Interest other than Interest from saving bank up to 10000.Suppose you have earned interest from FDR then you can not claim exemption from return filing;

Saving Bank interest is more than 10000 rupees and;
Any other Income under "Income from other source.

If He has not offered his Saving Bank interest income to his employer for tax deduction.
If he has discharged His tax liability through advance tax or self assessment challan.
If he has received salary from two employers during the year.
If he has not submitted his PAN to his employer.
If Form 16 has not been issued to Him by His employer.
If notice u/s 142(1) or section 148 or section 153A or section 153C of the Income-tax Act has been issued for filing a return of income
If assessment year is other than 2011-12.

Official Notification ( Click Here )

What is procedure to verify online TDS Certificate ?
NSDL has recently provided a online facility to our Taxpayee for verification of TDS Certificate Form No. 16 or Form No. 16A which is issued by the deductor without mentioning e-TDS/e-TCS Acknowledgement or any Receipt No. regarding relating to this. The CBDT has issued circular No. 3/2011 dated 13th May, 2011 as per this circular generation of Form No. 16 or 16A with NSDL is mandatory for Companies and Bank. To download complete circulate of CBDT.

Online Service to verify your TDS Certificate ( Click Here )

Know, How to submit your IT Return?
Free Income Tax Return preparation software is Now available from NSDL for submission you ITR-1,ITR-2,ITR-3,ITR-4,ITR-5,ITR-6 of Financial year 2010-11. These RPU are excel based and free for download and Unlimited use. As these software are provided by Income tax department, so it authentic software. From these e filing software you can generate Income Tax return for financial year 10-11 (Assessment year 2011-12). E_filing in Audit cases is mandatory since last year. Further for companies digital signature is also mandatory. Last date to file return in non audit cases for financial year 2010-11 is 31.07.2011 and for Audit case due date is 30.09.2011.