Sunday, July 24, 2011

Guidelines to filing IT Return online using ITR-I and ITR-V in India

Wow… For the first time, I filed my own IT Return. After doing it, yes it seems to be very very simple. However, till I had actually done it, it seemed pretty complex to me… There was no set guidelines on how to do it. There are many websites that take money to do it for you – so obviously no one tells you how to do it yourself. But thank the internet and the open source inspiration – now you can file your own IT return as I have done (which hopefully works).

Disclaimer: I’m no tax consultant. So I bear no liability should this not be a correct process and you be raided by the IT authorities. In case, this is wrong, please do bring to my notice so that I might file the correct IT Return.

Just a brief introduction to me: This section is important because for someone else, the method described below might not be true… I’m employed with my salary being my only source of income. The interest that the Bank pays me for keeping this salary is the other. I pay rents and have a few perquisites. I get these details from the Form 16 given to me by my employer.

  1. Go to: https://incometaxindiaefiling.gov.in/portal/login.do

  2. Create account using your PAN number (below the Login button, there is a link for "New User Registration".

  3. Download ITR-1 - it is a zip file. Extract it to some known folder - this might be required later too
    • If you are filing return for the income earned in year 2010-11, the corresponding. AY is 2011-12. Ensure you download the correct ITR-I form. The AY is mentioned at the top.

  4. When you open the file, it will ask you to enable macros. Go ahead.

  5. Fill up form. The fields marked * are mandatory.
    • You will need form 16 to fill the form. It is pretty simple if you have those details.

    • In case you do not know your WARD/CIRCLE, you can leave it blank. When you upload the XML, this is automatically filled using you PAN Card information. In case you need to confirm this, you can visit: https://incometaxindiaefiling.gov.in/portal/common.do?screen=jurisdiction and enter your PAN number.

    • When the file is complete - click on "Calculate Tax". This is very important. This step calculates the tax that you need to pay. In case, the TDS is less, it calculates extra tax payable.

  6. Fill in the Bank Account Number. The MICR is the 9-digit numerical code written at the bottom of your cheque.

  7. Then click "Generate XML"

  8. Save that XML to a known folder.

  9. Log into your account (created in Step 2). Go to Submit.

  10. Since you do not have digital signature, leave the checkbox empty.

  11. Upload the XML.

  12. The website will generate an ITR-V form. Download it. it is again a ZIP file which needs to be saved for future reference.

  13. The ITR-V is a pdf. the password to the pdf is {PAN number in small letters}{birthdate in dd/mm/yyyy}. I've not received the ITR-V on email as the website mentioned I would.

  14. Print the ITR-V. Sign at the appropriate place (at the bottom). Do not make any other alterations to this form.

  15. Send the same by Speed Post to: CPC, Post Bag No - 1, Electronic City Post Office, Bangalore – 560100. DO NOT SEND BY COURIER
Well, that is it. Hoping my IT Return is successful.

#Edit-1: I received the ITR-V form by mail two days after e-filing.
#Edit-2: It is important to add any interest you might have received on your savings bank account or Fixed Deposits you have as "Other Income".

#Edit-3: So your Form-16 doesn't include your Interest Income. How do you pay the additional tax that you owe? Visit https://onlineservices.tin.nsdl.com/etaxnew/tdsnontds.jsp --> Choose Challan 280 --> Tax Applicable 0021 --> Fill in details --> Type of Payment: 300

11 comments:

SenVij said...

wat did u fill up in the space tat reads.... In my full capacity as.............

PP said...

It can be either [Your Name] or "Myself"

anurag said...

thanks!thanks!thanks!

One question though, doesnt the bank deduct the tax for interest automatically ?

Puneet said...

@Anurag: The bank deducts TDS on interest - but it assumes the minimum slab i.e. 10%. The actual slab may vary depending on the actual income. Thus, if there is a differential, you need to pay additional tax.

Piyush said...

Hey Puneet

Thanks a ton for this post and for taking up so many query calls patiently.. feels good after filing it return online by self.. thanks to you!!! :)

Anonymous said...

Hello sir, My accountant has filed my IT Return online in ITR-2. I downloaded the ITR-V acknowledgement from my login. In ITR-V, particularly in declaration part, my pan number is wrong. But in top of the form there is a field for pan no. there my pan no is correct. Tell me, whether i need to correct my pan no in declaration part by revising it. Please clarify it. Thanking you.

Puneet said...

@Anonymous: Its Puneet (Not 'Sir'). I'm unable to understand why the two would differ since both these are taken from the same source - the personal info field of the ITR-2. Why you would have two PAN# is again confusing - if you yourself have two PAN#, it is illegal...!!
It is highly advised if you correct the same. I'm no expert on the same, but my guess is that the CPC would probably process the Barcode at the bottom of the page. And since there are two PAN# mentioned in the ITR-V, you will never be sure which one was barcoded and processed. Best thing would be to file again with the correction.
Disclaimer: I'm no expert - just an aam aadmi who filed his own Tax Return :)

Anonymous said...

Thanks Puneet. Thanks for your valuable reply. I verified that bar code at the bottom. Its mentioned my pan no correctly. But the only problem is declaration part. In that only, my pan no is wrong. So i need to revise it again.

Puneet said...

@Anonymous: Check the first 10 characters below the barcode. That should match one of the PAN#.

Anonymous said...

Thank you so much.Hi Puneet, I verified the first 10 characters of that bar code. Its correct Pan NO. Both the PAN no in top field and bar code first 10 letter are correct. Error is only in declaration part.

anurag said...

Agree completely with Piyush , has to be one the most helpful blog i have come across :)