Documente Academic
Documente Profesional
Documente Cultură
2015 2016
048
DEPARTMENT OF MANAGEMENT
Course: MBA
Dated:
Certificate from Guide
( Assistant professor)
ACKNOWLEDGEMENT
KEYWORDS E-return filing, Factor analysis, Perceived usefulness, Perceived ease of use.
Chapter-1
Introduction
Information communication technology is regarded as one of the most remarkable scientific
and technological development during last couple of decades which has impacted the life of
human being so deeply. Governments around the world are increasingly integrating this
technological development to reinvent public service and dissemination of information for
better public administration under various e-governance initiatives. The basic objective of all
e-governance projects is promotion of administrative efficiency through innovative executive
practices directed to make citizen services more convenient, efficient and customized. A
successful implementation of any e-governance initiative is a step towards citizen-directed
smart government. The success of any e-governance initiatives, however, depends upon the
importance that people place on particular project in terms of its usability. One of the
prominent e-governance initiatives which have been launched by a number of governments is
in the form of online return filing. The rapid development of internet technology, information
transmission through internet and improved safety mechanism has made e-return filing a
more convenient method of using service in many countries (Lu et al., 2010). The electronic
filing has various advantages over traditional methods of filing return. It is convenient, saves
time by avoiding queue in the tax department and can be completed in just 20-30 minutes
time. For tax payers who have digital signature, they can download their tax statement and
finish tax declaration within 5-10 minutes. Furthermore, electronic tax filing offers many
benefits to service providers also. It substantially minimize their workload and operational
cost due to submission of tax return in a paperless environment resulting reduced cost of
processing, storing, handling of tax returns and conservation of environment (Azmi et al.,
2010). For better tax administration and good governance practices, Indian Tax Department
launched e-return filing, TRPs and a Saral form (for individual tax payers) in new avatar in
2007.The Tax Department made huge investment in terms of system development, safety and
security of submitted information and sensitizing tax payers about the benefits of e-return
filing using mass-media campaign. The campaign was targeted over the facility of
anywhere/anytime filing, fast processing and automatic tax calculations with full safety and
security of the information submitted. Despite all the efforts on part of the Tax Department,
the tax payers perception about this new information technology oriented system is a cause
of worry. Since the public dont directly communicate with tax personnel, see or touch the tax
forms as the service is provided online, the e-return filing system may provide little
psychological satisfaction. Other problems may lies in reluctance of learning new system,
time involvement, stability and reliability of system during e-return filing process,
confidentiality and privacy issues may also create challenges in acceptance of electronic
return filing (Azmi et al., 2010). Due to all these issues the acceptance of e-return filing as a
method of tax filing has not gained good acceptance among the various categories of tax
payers in India. (table1).It is therefore, important for the government to identify the reasons
for the slow acceptance of this system by the individual tax payers.
S.P.A. is one of the fast growing composite financial services providers with all India
presence. The Group has been engaged in providing financial services for investments,
insurance, loans, stock broking at NSE and BSE, currency derivatives, depository participant
activity, merchant banking for domestic and multinational corporates, institutions and public
sector undertakings with over a decade of experience.
S.P.A. CAPITAL SERVICES LIMITED is the flagship company of the Group based in
Mumbai and New Delhi. It is ranked amongst the top 10 mutual funds distributors in the
country. The company is engaged in providing financial planning and risk management
solutions to various customer segments. Advisory services for alternate investment
options like portfolio management services in equity, debt and commodities besides
investments in structured products, venture capital funds and real estate funds are also
provided.
The company has a nation-wide distribution network serviced by its branches, regional
offices and associates. The company has mobilized more than 150000 crores for various
mutual funds during the last 8 years and is currently having Asset under Management of
over 14000 crores with more than 60000 satisfied customers.
Spa capital Services head office is registered at- 25, C-Block, Community CenterJanakpuri
New Delhi, 110058
1.2.1 COMPANY PROFILE
SPA Group was promoted by a team of finance professionals in 1995 with an objective to
provide value added financial services. Initially, the Group focused as a niche financial
solutions provider in corporate finance and wealth management to Indian companies and high
net worth individuals. In January 2000, the Group expanded its operations and the range of
services. Today, SPA provides services for securities broking, merchant banking, wealth
management, financial advisory, corporate finance, risk management and insurance broking.
SPA is being managed by its promoters along with a young and dynamic team of over 1000+
professionals with rich experience, in their respective fields. The Group has established itself
as one of Indias leading financial advisory house, offering various financial solutions to its
Institutional, corporate and individual clients.
Customer centric approach of SPAs dedicated professional team has helped carve a niche for
itself in financial services arena and won confidence of its clients. Clients of SPA are from a
wide spectrum and comprise of Banks and other financial institutions, Mutual funds,
Insurance companies, foreign institutional investors, public sector undertakings and
government departments, private corporates, trusts and individuals.
PROMOTERS
Mr. Kamal Somani, FCA, is a senior finance professional with over 30 years of experience
in investment banking, securities broking and corporate finance. His vast experience and
vision has enabled the Group to establish itself as a respected financial services provider in
the country. He looks after the overall group strategies and leads securities broking,
investment advisory and investment banking activities of the Group.
Mr. Sandeep Parwal, B.Com (Hons.), FCA, has over 26 years of experience in various
aspects of financial services. He handles investment advisory, insurance broking and
merchant banking activities of the Group. His expertise in providing customized innovative
solutions with unmatched speed provides a distinctive edge to the Group's capability.
Management Team
The Core management team of SPA consists of persons having a rich experience
in Corporate Finance and Advisory, Investment Banking, Risk Management,
Securities Banking and Wealth Management.
(a) VISION
Technology savvy
(b) MILESTONES
Since 1994, with the coming into existence of the SPA Group, we have diversified into a
complete financial solution providing house, catering varied needs of our clients ranging
from investment advisory services to investment banking, corporate re-structuring,
distribution and broking services, risk management and insurance advisory. Within a short
span of time, the Group has made a place for itself in the midst of the top financial solutions
provider in the country.
Investment Banking.
CHAPTER-2
Research methodology
Research methodology refers to the tools or the technique which is used for the analysis or
for the formation of the project report. It is meant to find out detailed information and closely
investigate the study. It may be of two types:
A secondary data research project involves the gathering and/or use of existing environmental
data for purpose other than those for which they were originally collected. These secondary
data may be obtained from many sources, including literature, industry surveys, compilations
form computerized databases and information systems, and computerized or mathematical
models of environmental processes.
Types of research
Descriptive research: - Descriptive research includes surveys and fact finding enquires of
different kinds. The major purpose of descriptive research is description of the state of affairs
as it exists at present. Researcher has no control over the variables of this type of research.
Qualitative research: In our research we need to analyse the attitude of service sector. So
this based on all qualitative data. In short, qualitative research is especially important in the
behavioural sciences where the aim is to discover the underline motives of human behaviour.
Through such research we can analyses various factors which motivate to people to behave in
a particular manner or which make people like or dislike a particular thing.
While deciding about the method of data collection to be used for the study the researcher
should keep two types of data.
1. Primary data
2. Secondary data
We use in our research primary data, as well as secondary data. Primary means collected a
fresh, and the first time data and secondary means which are already available like annual
report, magazines etc.
Survey method: survey refers to the method of securing information concerning phenomena
under study form all or selected number of respondents of the concerned area. In a survey the
investigator examines those phenomena which exist in the universe independent of his action.
We used the scheduling method.
Scheduling: In this method the enumerators along with schedules, go to respondents, put to
them the questions from the Performa in the order the questions are listed and recorded the
repiles in the space meant for the same in the Performa.
SIGNIFICANCE OF RESEARCH
Research methodology is a very significant technique as helps to understand the topic deeply
and in the complete manner so that even the minute points can also be determined and the
detailed knowledge about the topic can be taken.
CHAPTER-3
40
35 36
34
30
25 26
20
15 16
10
8
5
0
STRONGLY AGREE AGREE NEUTRAL DISAGREE STRONGLY DISAGREE
SERIES1
48
34 36
16
4. I do not have a step by step explanation to use e-Filing, therefore I feel nervous to
use e-Filing.
Series 1
60
50
40
30
20
10
0
STRONGLY AGREE AGREE NEUTRAL DISAGREE STRONGLY DISAGREE
Series 1
50
40
30
20
10
0
STRONGLY AGREE AGREE NEUTRAL DISAGREE STRONGLY DISAGREE
Series 1
Series 1
60
50
40
30
20
10
0
STRONGLY AGREE AGREE NEUTRAL DISAGREE STRONGLY DISAGREE
Series 1
7. Delay in execution
Series 1
60
50
40
30
20
10
0
STRONGLY AGREE AGREE NEUTRAL DISAGREE STRONGLY DISAGREE
Series 1
Series 1
50
45
40
35
30
25
20
15
10
5
0
STRONGLY AGREE AGREE NEUTRAL DISAGREE STRONGLY DISAGREE
Series 1
50
40
30
20
10
0
STRONGLY AGREE AGREE NEUTRAL DISAGREE STRONGLY DISAGREE
Series 1
Series 1
70
60
50
40
30
20
10
0
STRONGLY AGREE AGREE NEUTRAL DISAGREE
Series 1
100
80
60
40
20
0
STRONGLY AGREE AGREE NEUTRAL DISAGREE
Series 1
80
70
60
50
40
30
20
10
0
STRONGLY AGREE AGREE NEUTRAL DISAGREE
Series 1
80
70
60
50
40
30
20
10
0
STRONGLY AGREE AGREE NEUTRAL DISAGREE
Series 1
70
60
50
40
30
20
10
0
STRONGLY AGREE AGREE NEUTRAL DISAGREE
Series 1
While filling the return online one should know the basic information about tax
Taxes in India are of two types, Direct tax and indirect tax.
Direct taxes are like income tax, wealth tax, etc. are those whose burden falls directly
on the tax payer.
The burden of indirect tax are like service tax, VAT etc. can be passed on to a third
party.
Income tax is all income other than agricultural income levied and collected by the central
government and shared with states.
According to income tax act 1961, every person who is assessee and whose total income
exceeds the maximum exemption limit, shall be chargeable to the income tax at the rates or
rates prescribed in the finance act. Such income tax shall be paid on the total income of the
previous year in the relevant assessment year.
1.0 INTRODUCTION
Before one can embark on a study of the law of income-tax, it is absolutely vital to
understand some of the expressions found under the Income-tax Act, 1961. The purpose of
this Chapter is to enable to comprehend basic expressions. Therefore, all such basic terms are
explained and suitable illustrations are provided to define their meaning and scope.
1.1 OBJECTIVES
HISTORY
The Income Tax was introduced in India for the first time in 1860 by British rulers following
the mutiny of 1857. The period between 1860 and 1886 was a period of experiments in the
context of Income Tax. This period ended in 1886 when first Income Tax Act came into
existence. The pattern laid down in it for levying of Tax continues to operate even to-day
though in some changed form. In 1918, another Act- Income Tax Act, 1918 was passed but it
was short lived and was replaced by Income Tax Act, 1922 and it remained in existence and
operation till 31st. March, 1961.
PRESENT ACT
On the recommendation of Law Commission & Direct Taxes Enquiry Committee and in
consultation with Law Ministry a Bill was framed. This Bill was referred to a select
committee and finally passed in Sept. 1961. This Act came into force from 1st.April 1962 in
whole of the country.
Income Tax Act, 1961 is a comprehensive Act and consists of 298 Sections. Sub-Sections
running into thousands Schedules, Rules, Sub-Rules, etc. and is supported by other Acts and
Rules. This Act has been amended by several amending Acts since 1961. The Annual
Finance Bills presented to Parliament along with Budget make far-reaching amendments in
this Act every year.
The word Person is a very wide term and embraces in itself the following :
Local Authority: Municipality, Panchayat, Cantonment Board, Port Trust etc. are
called Local Authority.
Assessee means a Person by whom any Tax or any other sum of money is payable under
this Act. And this is divided into 3 categories.
The Definition given u/s 2 (24) is inclusive and not exhaustive. According to English
dictionary, the term Income means periodical monetary return coming in regularly from
definite sources like ones business, Land, Work, Investments etc..
Its nowhere mentioned that Income refers to only monetary return. It includes value of
Benefits and Perquisites.
The term Income includes not only what is received by using the property but also the
amount saved by using it himself. Anything which is convertible into income can be regarded
as source of accrual of income.
Income includes :
FEATURES OF INCOME
The following features of income can help a person to understand the concept of income.
(i) Definite Source: Income has been compared with a fruit of a tree or a crop from the
field. Fruit comes from a tree and crop from fields. Thus the source of income is definite in
both cases. The existence of a source for income is somewhat essential to bring a receipt
under the charge of tax.
(ii) Income must come from Outside: No one can earn income from himself. There can be
no income from transaction between head office and branch office. Contributions made by
members for the mutual benefit and found surplus cannot be termed as income of such
group.
(iii) Tainted Income: Income earned legally or illegally remains income and it will be
taxed according to the provisions of the Act. Assessment of illegal income of a person does
not grant him immunity from the applicability of the provisions of other Act. Any
expenditure incurred to earn such illegal income is allowed to be deducted out of such
income only.
(v) Dispute regarding the Title: In case a person is receiving some income but his title to
such receipts is disputed, it will not free him from tax liability. The receipt of such income
has to pay tax.
(vi) Income in Money or Moneys worth: The income may be in Cash or in kind. It is
taxable in both cases.
A. Taxable Income: These incomes form part of total income and are fully taxable. These
are treated u/s 14 to 69 of the Act. These are Salaries, Rent, Business Profits, Professional
Gain, Capital Gain, Interest, Dividend, Winning from Lotteries, Races etc.
B. Exempted Incomes: These incomes do not from part of total income either fully or
partially. Hence, No Tax is payable on such incomes. These incomes are given u/s 10(1) to
10(32) of the Act.
C. Rebate able (Tax Free) Incomes: These incomes form part of total income and are fully
taxable. Tax is calculated on total income out of which a Rebate of Tax at average Rate is
allowed. The rebate able incomes given u/s 86 of the Act are :
U/s 14 the term Gross Total Income [ GTI ] means aggregate of incomes computed under
the following Five heads :
After aggregating income under various heads, losses are adjusted and the resultant figure is
called Gross Total Income [ GTI ]
From Gross Total Income, Deductions u/s 80 are allowed. The resultant figure is called
Total Income on which Rates of Taxes are applied
Assessment Year means the period of 12 months commencing on the 1st day of April every
year.
In India, the Govt. maintains its accounts for a period of 12 months i.e. 1st April to 31st
March every year. As such it is known as Financial Year. The Income Tax department has
also selected same year for its Assessment procedure.
The Assessment Year is the Financial Year of the Govt. of India during which income a
person relating to the relevant previous year is assessed to tax. Every person who is liable to
pay tax under this Act, files Return of Income by prescribed dates. These Returns are
processed by the Income Tax Department Officials and Officers. This processing is called
Assessment. Under this Income Returned by the assessee is checked and verified.
Tax is calculated and compared with the amount paid and assessment order is issued. The
year in which whole of this process is under taken is called Assessment Year.
As the word Previous means coming before , hence it can be simply said that the Previous
Year is the Financial Year preceding the Assessment Year e.g. for Assessment Year 2008-
2009 the Previous Year should be the Financial Year ending 31st March 2008.
It is the Financial Year preceding the Assessment Year. As such for the assessment year 2008-
2009, the Previous Year for continuing business is 2007-2008 i.e. 1-4-2007 to 31-3-2008.
The Previous Year in case of newly started business shall be the period between
commencement of business and 31st March next following. e.g. in case of a newly started
business commencing its operations on Diwali 2007, the Previous Year in relation to
Assessment Year 2008-2009. Shall be the period between Diwali 2007 to 31 March 2008.
In such case the Previous Year shall be the period between the day on which such source
comes existence and 31st March next following.
Sl.
Income Section Previous Year
No.
4. Partly explained Investment [69B] Financial Year in which Investment was made.
The rule that the income of the previous year is taxable as the income of the immediately
following assessment year has certain exceptions. These are:
2. Income of persons leaving India either permanently or for a long period of time
[ Section 174] ;
In case I.T.O. has the reasons to believe that an individual will leave India with having no
intention of returning to India during the current assessment year, the total income of such
individual will be taxable in the current assessment year for the period between the expiry of
last previous year and till the date of his departure.
3. Income of a person trying to transfer his assets with a view to avoiding payment of
tax.
[ Section 175]
These exceptions have been incorporated in order to ensure smooth collection of income tax
from the aforesaid taxpayers who may not be traceable if tax assessment procedure is
postponed till the commencement of the normal assessment
On the basis of the aforesaid discussion, it can be said that a financial year plays a double
roleit is a Previous Year as well as an Assessment Year.
There are 5 different Income heads. The Income under each head will be charged to Income
Tax. Thus the tax will be computed on the basis of total income.
5. Income from other Sources including Bank Interest, Interest on Securities, Lotteries,
and Cross word Puzzles, Races, Games, Gift received on or after 1-9-2004 in excess
of Rs. 50,000 in cash etc. from unrelated persons.
1.12 WHO ALL HAVE TO PAY INCOME-TAX?
b. Societies & Charitable / Religious Trusts having taxable income exceeding Rs.1.5
lakh.
Income Tax is charged on 5 different heads. Aggregate of taxable income under each head of
income is known as Gross Total Income and so
Deduction of Expenditure:
In computing income under various heads, deduction is allowed towards expenditure
incurred in relation to earning the income. However, no deduction shall be allowed in respect
of expenditure incurred in relation to incomes exempt from tax.
Where the Gross Total Income of the Assesses includes Short-Term Capital Gains from
transfer of equity shares / units of an equity oriented mutual fund subject to Securities
Transaction Tax or any Long-Term Capital Gains, then no deduction shall be allowed against
such Capital Gains.
On this Taxable Income, Income Tax will be calculated as per the applicable rates.
Any Rent or Revenue derived from Land which is situated in India and is used for
agricultural purposes. [Sec. 2(1A)(a)]
According to Sec. 2(1)(a) , if the following 3 conditions are satisfied, income derived from
Land can be termed as Agricultural Income.
What is the Tax Treatment of Income which is partially Agricultural and partially from
Business [ Rules 7, 7A, 7B and 8]
For disintegrating a composite business income which is partly agriculture and partly non-
agricultural, the following rules are applicable
Business Agricultural
Types of Income
Income Income
Deduction in income tax act for assessment year 2015-16 (F.Y 2014-15)
3. 80CCD
Deduction in respect of Contribution
Total Deduction under Section 80C,
to Pension Account
80CCC and 80CCD (1) cannot
exceed Rs 1, 50,000.
4. 80D Deduction is available up to Rs.
Deduction in respect of Medical
15,000/- to an assessee for insurance
Insurance
of self, spouse and dependent
children. If individual or spouse is
more than 60 years old the deduction
available is Rs 20,000. An additional
deduction for insurance of parents
(father or mother or both) is
available to the extent of Rs.
15,000/- if less than 60 years old and
Rs 20,000 if parents are more than
60 years old. Therefore, the
maximum deduction available under
this section is to the extent of Rs.
40,000/-. (From AY 2013-14, within
the existing limit a deduction of up to
Rs. 5,000 for preventive health
check-up is available).
5. 80DD Deductions on Medical Expenditure
Where disability is 40% or more but
for a Handicapped Relative
less than 80% - fixed deduction of Rs
Deduction is available on:
50,000. Where there is severe
disability (disability is 80% or more)
1. expenditure incurred on medical
fixed deduction of Rs 1, 00,000. A
treatment, (including nursing),
certificate of disability is required
training and rehabilitation of
from prescribed medical authority.
handicapped dependent relative Note: A person with 'severe
disability' means a person with 80%
2. Payment or deposit to specified
or more of one or more disabilities as
scheme for maintenance of
outlined in section 56(4) of the
dependent handicapped relative.
'Persons with disabilities (Equal
opportunities, protection of rights
and full participation)' Act.
There are many more deductions in Indian tax act 1961 provisions which we also called
loopholes, which can be used to minimise the tax legally, and thats also called tax evasion.
Income tax rebates are those items which are allowed to be claimed from total tax payable. It
is pertinent to note that income tax exemptions and income tax deductions are allowed from
to be claimed from the income whereas rebate is allowed to be claimed from the tax payable.
Income tax rebate of Rs. 2000 for persons with income up to Rs.5 lakh
For this assessment year 2015-2016 (financial year 2014-2015) IT act specified Rs. 2000
as rebate if your income is less than Rs. 5,00,000. To claim this rebate you have to first
calculate your net tax liability and deduct Rs. 2,000. Out of it to find out your tax liability
that needs to be paid to government.
SOME HELPFUL TIPS FOR FILING INCOME TAX RETURNS
Income-tax return is a legal document and it should be filed by the assessee with due care and
caution. There should be no corrections or overwriting and it should be properly signed and
verified by the person authorized to do so under the provisions of the Income-tax Act. The
following important points may be taken care of while filling up the return forms:
1. ITR Applicable Each assessee has to identify the correct ITR Form applicable in its case
before filing the return of income.
2. No enclosures to the return- Rule 12(2) of the I.T Rules provides that the return of
income and return of fringe benefits required to be furnished in Form No. ITR-1, ITR-2, ITR-
3, ITR-4, ITR-4S ITR-5, ITR-6, or ITR-8 shall not be accompanied by a statement showing
the computation of tax payable on the basis of return, or proof of tax, if any, claimed
deducted or collected at source or the advance tax or tax on self-assessment, if any, claimed
to have been paid or any document or copy of any account or form or report of audit required
to be attached with the return of income or return of fringe benefits under any provisions of
the Act.
3. For timely delivery of refunds, ensure correct address and account number on your
Return of Income From 1.10.07 onwards, all income tax refunds in Bangalore, Chennai,
Delhi, Kolkata and Mumbai will be delivered by the Refund Banker directly at the
communication address mentioned on the Return of Income. Taxpayers are requested to fill in
the correct address(available during working hours for delivery) to ensure speedy delivery of
refunds. In the case of taxpayers who opt for refunds through ECS, it will be credited directly
to the bank account for which correct MICR code/ Bank Account Number has to be furnished
on the Return.
8. Verification
The verification must be signed by the authorized person before furnishing the return and the
name and designation of the person signing the return should also be written. Any person
making false statement is liable to be prosecuted under section 277 of the Act.
Income tax return e-Filing in India for AY 2015-16 is open now. You can e-file
yourincome tax return through the sitewww.incometaxindiaefiling.gov.in. Theincome tax
return e-Filing has made our life very easy. Now most of the taxpayer dont need the service
of the chartered accountant. A salaried person can easily e-file income tax return using his
form 16. Government is also trying hard to 100% shift to e-Filing. In 2013-14, 2.96
crore income tax return has been filed through the e-Filing facility. While in 2014-15 the
number increased to 3.41 crore.
So, it is time to e-file your income tax return. Last year I have written a detailed post on how
to file income tax return for AY 2014-15. This year Also I will tell you how to e-file
theincome tax return. I could also refresh the old article for this year, but there are many
changes. Hence, I am writing a new post. In this post I will discuss the following topics.
Also Read- e-Filing Income Tax Return Form ITR-2, It is Not a Big Deal
The benefits of e-Filing is evident. Once, you adopt this method of income tax return filing,
you will never go back to the offline mode. Have look at the benefits.
1. You can e-File income tax return from your home or office
3. Your personal details and tax paid amount would be already there in the ITR.
4. The income tax return utility will immediately calculate the tax liability. You can
tally it with the TDS.
5. You will have online record of income tax return for further verification.
The process of electronically filing Income tax returns through the internet is known as e-
Filing. You fill your income details, deductions and tax payments in the income tax
returnforms using internet. The income tax return forms are called ITR. There are many ITR
forms for each class of tax payers. You can download all these ITR through the income tax e-
Filing website https://incometaxindiaefiling.gov.in. This website deals with all theincome
tax return related issues. You can e-file income tax return, check the status of tax refund and
rectify the income tax return through this portal.
Types of e-Filing
The income tax return e-Filing is done through the two ways.
In the first method you have to download the suitable ITR in your computer. You fill it
and upload it back to the https://incometaxindiaefiling.gov.in portal.
In the second method you fill all the details into an online form. It does not involve
any download or upload.
The second method is easy and today I will guide you through this method. However, you
cant fill all the ITR forms through the online method.
There are 6 ITR for individuals. The tax payer who earns from the salary, should use the
ITR-1. It is the simplest form and applicable for most of the people. If you are a professional
or businessperson or earns from other sources, use other ITR forms. I am giving the ITR use
table from the income tax website.
ITRs for Individuals and HUF
Individual Individual, HUF
The government has made some changes in the ITR forms. The change is applicable for
the income tax return of AY 2015-16. If you have been e-Filing earlier, you must pay
attention to these changes.
1. Now there are 5 ITR forms instead of 4 for the individual tax payers.
2. The ITR 2 is divided into 2. The ITR 2 and ITR 2A.
3. ITR 2A would be used by the salaried taxpayer who has income from more than
one property.
4. The salaried taxpayer who has income from one property can use ITR-1.
5. The taxpayers with capital gains, foreign assets and income to file ITR-2
6. The new ITR-2 and ITR-2A form is of only 3 pages. The income details can be
filled in schedules.
7. Now you will have column to fill 2 mobile numbers.
8. You will also have option to give Adhaar number.
9. An individual/Hindu Undivided Family (HUF) can now give details of exempt
income in ITR-1 as well. These income includes dividend, long term capital gains on
equity, EPF, PPF and gratuity. Earlier, ITR-2 was used for the exempt income of more
than Rs 5000.
10. However, agriculture income of more than Rs 5000 is still part of ITR-2.
11. The taxpayer of ITR-2 or ITR-2A, should give the passport number, if available.
12. In the all ITR you need to give the details of all active bank accounts. Besides
one account for income tax refund you have to mention the IFSC code and account
number of other bank accounts. You need not to give details of dormant bank account.
13. The most useful change of efiling in AY 2015-16 is the e-verification of income
tax return. It makes the complete procedure of efiling online. You are not required to send
ITR-V by post.
The ITR Controversy of 2015
The above rules of ITR are modified after the big controversy. On 18th April government has
notified the new ITR forms. Those new forms were opposed by various sections of
businesses. The forms required detailed information from the taxpayer. It was so detailedthat
ITR 2 was of 14 page long. These were two point of contention from the new ITR forms.
1. In the ITR 2 and ITR 2A, you needed to give full details of foreign travel.
Theassessee would have to report passport number, the issuance place of the passport,
countries visited, number of times such journeys made. In case of a resident taxpayer, the
expenses incurred from own sources in relation to such travel should be also reported.
2. They assesse would have to furnish the number of bank accounts along with the
account number, address, IFSC code, any possible joint account holder and balance in the
accounts. It also included the dormant bank account.
After the uproar the finance minister Arun Jaitely immediately put these forms on hold. Now
in the revised ITR forms you need to give only passport number and details of active bank
account. You need not to mention the account balance. Also, this year government
hasextended the last date of income tax return filing.
Most of the income tax payers in the country is salaried. The employer deduct tax at source
from the salary of employees. The employer takes care to the applicable tax of the employee.
Therefore, most of you are not concerned about the payment of income tax. Since your
employer do the taxation job, the filing of income tax return of salaried is easier.
Important Documents for Income Tax Return e-Filing
There are some documents which are required during e-Filing of income tax return.
The salaried employees get form 16. This form 16 has the details of your income and TDS.
The 80C deduction is also incorporated in the form 16. The government has prescribed a
format of form 16. This form 16 is used to file income tax return. Please note form 16 is not
required with the income tax return form. It is used only for reporting the income and tax
details. It is a certificate of TDS from the employer to the employee. You should preserve
it for any further query.
Form 16A
This is also a TDS certificate similar to form 16. But it is used for TDS other than the salary
income. There are many payments other than salary which is given after the tax deduction at
source. The certificate of this deduction is given in the form 16A. Form 16 is given annually
while form 16A is given quarterly.
Form 26AS
Form 26AS is provided by the income tax department. It shows all the taxes paid against a
PAN. This form incorporates the TDS details of form 16 and form 16A. You can verify the
TDS on your payments through the form 26AS. Anyone can access his form 26AS through
the income tax e-Filing website. The login ID and password of e-Filing is used to view the
form 26AS. You can also see your form 26AS through the internet banking.
You should also have details of your bank accounts and passport number while you e-File
the income tax return.
The ITR-1 Form for Salaried Taxpayer
Note: You should also note that these conditions of ITR-1 is also applicable for the dependent
spouse or minor child. As there income is clubbed with you. If wife or minor child is self-
dependent and filing her own income tax return, this clubbing rule is not applicable.
This Return Form should not be used by an Individual whos Total Income for the assessment
year 2015-16 includes:-
In this method of e-Filing the form is presented online. You fill the form and keep saving the
draft. After the completion of form you have to submit it online. In this method you do not
download anything. It is an easier process therefore It is listed as Quick e-File. But, to use
this facility you should have the reliable internet connection.
I am showing you the steps of e-Filing process with complete illustration. The step by step
guide with images would be very useful for the new taxpayer.
Steps To e-Filing
Login at www.Incometaxindiaefiling.gov.in portal. The PAN is used as user ID. You must
remember password. Otherwise you should use forget password facility to reset the password.
You need to give date of birth in MM/DD/YYYY format for login.
After the login into dashboard, click at Quick e-File in left sidebar. It is the first option.
If you have digital signature, you can choose yes on the next item. Most of us dont
have digital signature, therefore it should remain No.
In the next page you will see the instruction. Read them carefully. You can also download
detailed instruction, if required. However, I am trying to guide you.
In the personal information tab you may see your name, address, pan, date of birth, email and
mobile number. You can edit these information if there is any change. You can also give two
mobile numbers.
In the filing status section, at column A19 you have to choose the employer
category. For private employees it would be others.
Go through the column A20-A22. Most of you dont need to change the default.
You have to select an option in the column 23. For 99% people it would be No
Wait! You must go up to the last column this year. The A27 and A28 gives you the
option to provide the Adhaar number. Adhaar number will make the e-Filing process
easier.
In the Income Details tab you need to use the form 16. Go through the instruction of every
column.
B1- you have to fill the taxable income from the head salaries. Refer to column 6 of form 16.
B2- This column for those assesse who has taken home loan or earning rent from the house
property. Choose the type of property accordingly. Note, if you have more than one property
to mention, you must use the ITR form 2A.
Fill the income from house property. If you are earning rent, fill the 70% of earned amount in
this column. If you are paying interest on home loan fill it in this column. In case of home
loan you must write the amount in negative (e. g. -85000) otherwise, your tax will increase
instead of decreasing.
B3- This column is for the other income. This other income can be interest on bank
deposit, interest waiver on company loan, ex gratia amount etc.
In the next section you have to give details of investment and expense which are eligible for
tax deductions.
C1 In this column you have to fill the total amount eligible for tax deduction under section
80C. You can refer it from the form 16. However, If you could not tell some 80C investment
to your employer, you can add it here. You should keep the proof with yourself.
C2-C18 I have given the instruction of these columns in the screenshot. Please see at the
image. These column are for various income tax exemptions.
In the tax computation section, except column D7 all the columns would be prefilled. The
column D7 is provision of tax relief under section 89 . Section 89 gives you some tax relief if
your total taxable income also includes arrears.
Schedule TDS-1
In this section you have to mention the taxes paid. You may find this section prefilled, as
income tax department has data of your taxes paid against the salary. You should verify it
with the form 16. The taxes paid information is mentioned in the beginning of form 16.
Schedule TDS -2
In this section you have to fill the tax paid details of other income. However, It should be pre-
filled from the record of income tax department. You should have form 16A to verify the
values in this column. If you dont have any other income, leave this section blank.
Schedule IT
This section is to include the self-assessment tax or advance tax paid by you. You may have
some earning without the TDS. You should pay income tax on such earning. In my case you
can see there is a mention of Rs 51 tax paid. I have paid this tax to show theprocedure of
income tax e-payment. This section may be also pre-filled, you need to verify only. It is
editable, you can fill your values if required.
The taxes paid and verification tab shows the total tax calculation. In this tab you will see the
payable tax by you according to the given information in the form. You will also see the value
of total taxes paid. The difference of taxes paid and tax payable should be zero. If not, you
may get refund or pay the remaining income tax.
D17 If you see any value in column 17, hold your income tax return submission process.
Now you need to check the all values once again. If there is still some tax payable, you need
to pay the required tax. You can pay income tax online within 10 minutes. After the payment
of remaining income tax, you need to mention it in the Sch IT. You can add rows to enter the
BSR code, challan number and amount of recently paid tax.
After the mention of taxes paid, there should be zero in column 17.
D18- If there is any refund, you will see the value in column D18. This refund process starts
after you submit the income tax return form and income tax department verifies it. You can
also check the status of income tax refund.
D19 In this column, you need to give the amount of exempted income. This income can be
of dividend, gratuity, and PF proceeds. Please dont ignore because it keeps away tax sleuths.
Income tax department has an eye on your bank balance.
You are required to give bank account number to get income tax refund. Earlier it was not
mandatory but, now you have to give one bank account number, whether you get tax refund
or not.
Besides this you have to also give details of other active bank accounts. You can get IFSC
code and bank account number from the cheque leaf.
Verification
You need to fill the place and submit the online income tax return form ITR-1.
Now you have to click at the submit button. If you have filled the all mandatory columns, the
income tax return form would be submitted. After the successful submission you see the links
to e-verify the income tax return.
The e-verification has put an end to the requirement of ITR-V verification. Now you can
easily e-verify the income tax return instantly. However, there is still ITR-V option.
Download the ITR-V and open it using the PAN as password. Take a printout of ITR-V, sign
at the mentioned place.
You must send the ITR-V to CPC Benagaluru as soon as possible. If you dont send ITR-V
within 120 days, the income tax return would be null and void.
You can send ITR-V by speed post or ordinary post. You can send many ITR-V form in a
single envelope.
You can also check the status of ITR-V receipt through the incometaxindiae-Filing.gov.in.
I have tried to give you detailed procedure of income tax return e-Filing.
There are some common questions which are
Question: I have got the gratuity amount, do I need to pay income tax on it? If yes
where should I mention it?
Answer: Gratuity, leave encashment and EPF is exempted from tax. However, you need to
mention it while filing income tax return. Now, you can mention this amount in ITR-1 as
well. There is a column to fill such exempted income.
Question: Why do I need to mention the exempted income such as dividend and
agriculture income?
Answer: It is true that some class of income does not attract. But, you sould mention it in the
return to avoid in hassle in future. Now, income tax department tracks every transaction. If it
finds an unaccounted big amount in your bank account, It can send you tax notice. Hence, it
better to intimate it.
Answer: It is obligatory to file income tax return if your income is more than the tax free
limit. The income tax return fulfils these objectives.
It presents the complete picture of income tax liability and taxes paid.
However, non-filing income tax return is not a crime. Not paying income tax is a crime.
Answer: e-Filing income tax return is not mandatory for all till now. It can be in future.
Resident Individual/ HUF, being resident who has assets outside of the India.
The taxpayer who is required to audit his income.
All companies.
Firm, AOP, BOI, Artificial Juridical Person, Co-operative Society and Local
Authority.
A resident who has signing authority in any account located outside India.
A person who claims relief of double taxation under sections 90 or 90A or deduction
under section 91.
Question: Which Address should be given in the Income Tax Return form? Should it be
the one mentioned in the PAN or the present Address?
Question: My bank details mentioned on the Income Tax Return has changed and I
have to receive a Refund. How can I change the bank details?
Answer: You can ONLY change the Address/Bank details once the Income Tax Return is
processed and refund fails. To know the status of Income Tax Return, LOGIN and GO TO
My Account My Returns/Forms. If the status is shown as Refund unpaid and Refund
generated, you can raise a request to change Address/ Bank details at My Account
Refund Re-issue request.
Question: I could not send ITR-V within 120 days. Should I file revised return or
original return?
Answer: If 120 days period has lapsed then you should file a revised return. However, the
revised return filed will be treated as original return.
Question: I did not receive any intimation from CPC Bangalore u/s 143 (1) or 154, then
what is the procedure to contact CPC?
Answer: The intimation u/s 143(1) is the proof of income tax return filing. If you dont
receive it, call toll free number at 1800-425-2229 or paid number at 080-22546500. Once
connected, Press 9 to speak to CPC executive on the IVR response.
You can also request for Intimation u/s 143(1) and 154 on e-Filing application. LOGIN and
GO TO My Account Request for Intimation.
Question: How can I open the PDF for Intimation u/s 143(1) OR Rectification Order
u/s154 PDF?
Answer: The password is a combination of PAN (in lower case) and DOB in ddmmyyyy
format for e.g. for PAN : bcmps1106b and dob : 02/10/1980, the password should be entered
as bcmps1106b02101980.
Question: I have e-Filed my Income Tax Return but not received my refund till now.
Answer: If you have not received refund till date, it could be due to the following reasons:
1. Your Income Tax Return has not been processed yet. Once the return is processed you may
receive a Refund.. To check the status of your e-Filed IT Return, LOGIN and GO TO My
Account My Returns/Forms.
2. Your Income Tax Return has been processed but no refund is determined.
3. Your Income Tax Return has been processed, a refund has been determined, but the
Cheque/ ECS credit could not reach you. This could be because of wrong address, not being
available at home (door locked), wrong Bank Account number for ECS credit. To check if
your Refund has returned back to us, LOGIN and GO TO My Account My
Returns/Forms and check the status.
Answer: LOGIN and GO TO My Account Refund Re-issue request. Select the mode
of re- receiving refund- ECS or Cheque, Provide Bank Account number (if changed) and
Provide Address details.
Answer: The process of filing revised return is same as original return. Only you have to
choose the revised return in filing status section. You are also required to give details of
original return. You can read detailed procedure of revised return in my another post.
Answer: Legally, a return can be revised any number of times before the expiry of one year
from the end of the Assessment Year OR before the completion of the assessment by the
Department; whichever is earlier.
Question: Can I Send ITR-V through the courier
Answer: No, you can send ITR-V only through the ordinary post or speed post. You would
not get the acknowledgment.
Question: I have not received a copy of ITR-V in my e-mail ID or the ITR-V received in
my mail ID is not opening. What should I do?
CHAPTER-4
LIMITATIONS OF STUDY
The first limitation is related to the sample size which is relatively small in
comparison to similar other studies.
The second limitation is related with the scope to analyze acceptance of e-return filing
comprehensively by including additional independent variables like trust in its
domain.
The third limitation ismany finding and analysis part is taken from one place that is
from company, so we have to mainly depend upon secondary data.
Chapter-5
SUGGESTIONS/RECOMMENDATION
The basic objective of this research study was to analyze various factors that affect the
acceptance of E-filling returns by listing out the advantages, the process and there
availability. Some new conceptual foundation is proposed in this study that systematically
explores the critical success factors in acceptance of e-return filing in India. The study is
unique because it investigated the customer acceptance of e-return filing from the perspective
of its empirical generalization in developing economies like India. The study posits that
acceptance of e-return filing can be improved by focusing perceived ease of use, perceived
usefulness, perceived credibility and computer awareness. The study reveals the importance
of focusing on enhancing a positive attitude of how easy e-return filing is to use and the
degree it is useful to the focused group. In this parlance, the tax authorities should keep the
ease of use and perceived usefulness in their priority. When designing the software for e-
return filing, the ease of use and personalization should be kept in mind. This move will
motivate customers in developing beliefs around the e-return filing services and in turn will
lead to customers accepting of e-return filing. The decision makers need to understand that
the familiarity with new information system varies from person to person so they are required
to develop mechanism to familiarize customers with the procedure of their services. Tax
authorities can provide a manual reference or video presentations at the various points to
explain ease of use. The study also reveals that perceived credibility also plays a substantial
role in the customer acceptance of e-return filing. The study founds the role of perceived cost,
perceived social pressure and perceived risk statistically insignificant in relation to other
factors. Furthermore, this study suffers from three major limitations. The first limitation is
related to the sample size which is relatively small in comparison to similar other studies. The
second limitation is related with the scope to analyze acceptance of e-return filing
comprehensively by including additional independent variables like trust in its domain. The
third limitation which is prominent in nature is that the present study is tested using
correlation and regression analysis among variables. However, this technique can only
examine a single relationship at a time (Hair, at el, 1998). An area of upcoming research is to
test the proposed model using Structural Equation Modeling (SEM). SEM is a multivariate
statistical technique used to estimate a number of interrelated dependence relationship
simultaneously. Finally, in this information communication technology era, every government
is required to develop a reliable, fast and customized channel for service delivery under
various e-governance initiatives. The present study is a systematic attempt in this direction to
explore customer acceptance of one such input in the form of e-return filing. Future studies
may be conducted to validate the findings of this study.
BIBLOGRAPHY
http://taxguru.in/income-tax/helpful-tips-filing-income-tax
http://www.planmoneytax.com/e-file-income-tax-return-ay-2015-16/