Transcript New Income Tax Returns - Bangalore Branch of SIRC of The

New Income Tax Returns
Study Circle Meeting
Bangalore Branch of SIRC of ICAI
18th June 2009
Introduction

Central Board of Direct Taxes (CBDT) have
notified the new returns of income tax for the
assessment year 2009-10.

Let us try to understand these new returns in
a question and answer session.
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Q. How many types of new returns have been
notified by the CBDT?
A. In all, 8 types of income tax returns have
been notified by the CBDT viz;
ITR-1,
ITR-2,
ITR-3,
ITR-4,
ITR-5,
ITR-6,
ITR-7 and ITR-8.
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Q. Who can use ITR-1?
A. ITR-1 is meant only for individuals having
income from salary / pension / family
pension and not having any other income
except income by way of interest
chargeable under the head “income from
other sources”.
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Q. Can an individual having salary income and
also some exempted income (dividend) use
form ITR-1?
A. ITR-1 can not be used if the individual has
any other income (except interest income)
in addition to his salary income. Therefore,
if he has dividend income (even though
exempt), he cannot use ITR-1.
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Q. Can an individual having only interest
income use ITR-1?
A. No. ITR-1 can be used only if the individual
has salary income. In this case he should
use ITR-2.
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Q. Who can use ITR-2?
A. Individuals and HUFs not having any income
under the head “Profits or Gains of Business
or Profession” can use ITR-2. In other
words, individuals and HUFs having income
under the head “Profits or Gains of Business
or Profession” cannot use form ITR-2.
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Q. Can an individual having only salary income
use ITR-2?
A. No. An individual having only salary income
should use ITR-1 and he should not use
ITR-2.
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Q. Who can use ITR-3?
A. Individuals and HUFs being partners in firms
and not carrying on any business or
profession as proprietors can use ITR-3.
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Q. Who can use ITR-4?
A. Individuals and HUFs having proprietary
business or profession can use ITR-4.
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Q. Can an individual having a proprietary
business and also being a partner in a firm
use ITR-4?
A. Yes. Individual being a partner and also
carrying on proprietary business should use
ITR-4.
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Q. Who can use ITR-5?
A. ITR-5 is meant for firms, AOPs and body of
individuals. This is a combined return for
income as well as fringe benefits.
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Q. Who can use ITR-6?
A. ITR-6 is meant for companies (other than
companies claiming exemption under
section 11, I.e.section 25 – companies).
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Q. Who can use ITR-7?
A. ITR-7 should be used by charitable trusts,
political parties, section 25 compnaies,
institutions claiming exemption from tax and
universities, colleges, etc.
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Q. Who can use ITR-8?
A. ITR-8 is a stand-alone fringe benefit tax
return and it can be used by assessees who
are not required to file their return of income
but, are required to file their return of fringe
benefits.
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Q. When does one get to use ITR-8?
A. E.g. An AOP whose income is below the
maximum exemption limit is not required to
file its return of income. In such cases, if it
is liable for fringe benefit tax, it is required to
file return of fringe benefits in ITR-8.
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Q. Can an AOP which has income below the
maximum exemption limit and liable to pay
FBT use ITR-5 instead of ITR-8?
A. No. The instructions for ITR-5 makes it clear
that it cannot be used by a person who is
required to file ITR-8.
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Q. Where can one get these forms from?
A. These income tax return forms can be
downloaded at
http// incometaxindia.gov.in
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Q. Which is the income tax rule which
prescribes the form and the manner in
which income tax return is required to be
furnished?
A. Rule 12 of the Income Tax Rules, 1962
provides for the form and the manner in
which income tax returns are required to be
furnished.
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Q. What are the different modes of furnishing
the income tax returns available for a
company?
A. A company can file its return of income in
any of the following 2 modes;
i.
ii.
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Electronically furnishing the return under digital
signature or
Transmitting the data information electronically
and thereafter submitting the verification of the
return in form ITR-V
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Q. How can partnership firms covered u/s 44AB
furnish their returns?
A. They can furnish their returns in any of the
following 2 modes.
i.
ii.
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Electronically furnishing the return under digital
signature.
Transmitting the data information electronically
and thereafter submitting the verification of the
return in form ITR-V.
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Q. How can individuals, HUFs, AOPs, body of
individuals and firm not covered by 44AB
furnish their returns?
A. They can furnish their returns in any of the
following 4 methods.
Furnishing the return in a paper form.
ii. Furnishing the return electronically under digital
signature.
iii. Transmitting the data in the return electronically and
thereafter submitting the verification of the return in
form ITR-V.
iv. Furnishing a bar-coded return in a paper form.
i.
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Q. How does charitable / religious trusts,
political parties and other non profit
organization should furnish their returns?
A. Such assessees must furnish their returns
only in paper form.
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Q. Can the returns prescribed for assessment
year 2009-10 be used for filing the returns
of income of earlier years? Say A. Y. 200809?
A. No. The returns meant for 2009-10 can be
used only for the assessment year 2009-10.
For earlier years, the returns meant for
those respective years alone can be used.
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ITR-1
Q. How does ITR-1 look
like?
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ITR-2
Q. How does ITR-2 look
like?
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ITR-3
Q. How does ITR-3 look
like?
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ITR-4
Q. How does ITR-4 look
like?
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ITR-5
Q. How does ITR-5 look
like?
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ITR-6
Q. How does ITR-6 look
like?
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ITR-7
Q. How does ITR-7 look
like?
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ITR-8
Q. How does ITR-8 look
like?
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ITR- V
Q. How does ITR-V look
like?
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Q. Is there any requirement to attach TDS
certificates, audit reports, etc., to the
returns?
A. No. Income tax rule 12 provides that the
returns of income shall not be accompanied
by any attachments / annexures.
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Q. Is there any exception to these rules?
A. Yes. In the case of charitable / religious
trusts, political parties and other non profit
organizations who are filing their returns in
ITR-7 are required to attach audit reports,
advance tax challans, etc. (as was the case
earlier) along with the return of income.
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Q. Is there any requirement of production of
computation of income tax, copies of
balance sheet, profit and loss account, TDS
/ TCS certificates, proof of payment of
advance tax or self assessment tax etc.,
before any authority?
A. Yes. In case jurisdictional assessing officer
legally demands production of any of the
above, the assessee is duty bound to
produce such documents before him.
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Q. In the case of electronic filing of return when
does the assessee obtain his tax audit
report?
A. The tax audit report is required to be
obtained before furnishing of the e-return.
The assessee is required to mention the
date and other particulars of tax audit
report in his return of income.
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Q. Is there any requirement of filing transfer
pricing report?
A. Yes. Transfer pricing report in form 3CEB is
required to be filed before the due date of
filing of the return and it is to be filed with
the jurisdictional assessing officer.
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Q. What are the steps involved in furnishing the
return electronically under digital signature?
A. First of all the user should register himself at the website
http// www.incometaxindiaefiling.gov.in
The return information should be filled in an excel file.
Thereafter, the excel file should be converted into XML
file. Affix the digital signature. Thereafter, using the
return submit option in the website, return should be
filed. With this, the process of furnishing the return will
be complete in all respects. If the return is digitally
signed, the system will generate an acknowledgement
which should be kept for reference.
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Q. What is the procedure for furnishing the return
electronically but without digital signature?
A. First of all the user should register himself at the website
http// www.incometaxindiaefiling.gov.in
The return information should be filled in an excel file.
Thereafter, the excel file should be converted into XML file.
Thereafter, using the return submit option in the website, return should
be filed. There will not be any affixation of digital signature. The
system will generate an acknowledgement which should be kept for
reference.
The system will also generate a bar-coded ITR-V.
The ITR-V that is generated by the system should be sent by post to
the Income Tax Department-CPC, Post Box No. 1, Electronic City Post
Office, Bangalore – 560 100, Karnataka.
The filing of the return will be complete once the ITR-V is posted.
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Q. Is there a time limit for sending the ITR-V?
A. ITR-V should be posted within 30 days from
the date of transmitting the data
electronically.
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Q. What happens if it is not posted within 30
days? Or posted beyond 30 days?
A. It will be treated as if the return of income is
not filed.
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Q. If transmitting the return data electronically
is followed up with ITR-V, what will be the
date of filing the return?
A. The date of transmitting the data
electronically will be treated as the date of
furnishing the return.
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Q. Is ITR-V required to be signed by the
assessee?
A. Yes. ITR-V is required to be signed by the
assessee and if it is not signed, it will be
considered as invalid.
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Q. What happens if the ITR-V is sent beyond
30 days?
A. It will be treated as if the assessee has
never been furnished his return and he has
to go through the process of filing the return
all over again if he wants to file his return.
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Q. How will CPC match the ITR-V with the
return of income?
A. ITR-V is bar-coded and using the bar-code,
CPC will match ITR-V with the return.
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Q. How does one know that CPC has received
ITR-V?
A. CPC is expected to send e-mail
acknowledging the receipt of form ITR-V
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Q. Is there any time limit prescribed for sending
the email?
A. No. There is no time limit prescribed for
sending the e-mail acknowledgement.
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Q. Can ITR-V be filed with the jurisdictional
assessing officer?
A. No. ITR-V cannot be filed anywhere else
other than CPC.
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Q. Can ITR-V be filed across the counter in
CPC?
A. No. ITR-V can be sent only by post.
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Q. Is there only one CPC for the whole of
India?
A. Yes. At present, there is only one CPC
situated in Bangalore which will process the
returns filed electronically by assessees all
over India.
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Q. Who will process the paper returns?
A. In due course of time, these will also be
processed by the CPC but, till such time as
the infrastructure is put in place, these
returns will be processed by jurisdictional
assessing officers.
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Q. How does the processing happens in CPC?
A. The computer system in the CPC will
process the data furnished electronically
and match the data for tax deducted at
source, tax collected at source, advance tax
and self assessment tax with the
independent information received from the
deductors, collectors and bankers.
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Q. How will the matching of these data done?
A. The matching of the data is done by using
the unique transaction numbers and challan
identification numbers. Therefore, proper
mentioning of these numbers is very
essential.
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Q. Can the returns of income be filed without
UTN?
A. The returns can be filed without UTN but,
without UTN credit for pre-paid taxes will not
be given. Therefore, for filing the returns of
income for the assessment year 2009-10, it
is essential that assessees wait to get the
UTN in respect of their pre-paid taxes.
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and Finally
S. Vishnumurthy
VISHNU RAM & CO.
23568910
9880034940
[email protected]
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