Taxation
Economy & Nation Exclusive
Filing Income Tax Returns made easy for salaried people
A taxpayer who earns income from salary and owns a single house can easily file tax returns online without taking any help from professionals
 
Every year, the month of July makes every salaried taxpayer rush to file income tax (I-T) returns. However, for FY2014-15 (AY2015-16), the last date for filing tax returns is extended till 31 August 2015. The deadline is just a few days away. If you haven’t filed your return, do so after reading this piece. 
 
Tax filing has been an intimidating process for many people and taxpayers often face issues dealing with changes to tax forms or get stuck when they have a question. But with online facilities and services, I-T filing has become an easy thing. The taxpayer can file returns online with or without taking any help from accountants or chartered accountants (CAs). 
 
You can either use paid services for filing tax returns online or file it for free on the Income Tax department's e-filing website (https://incometaxindiaefiling.gov.in/). There are two ways to file tax returns. You can file an offline form and upload an XML file, which is generated when you fill up the form using the ITR utility, applicable to your status. The second method involves preparing and submitting your ITR online. For offline filing, you can download and use Excel or Java-based utility. 
 
For filing I-T returns online (for salaried people), you need to have your Form 16 (for FY2014-15 or AY2015-16) ready with you. You will also need your bank statements showing interest or any other income earned, if any, during April 2014 to March 2015. Also, keep handy the copy of your previous year’s return, TDS, savings certificates (if applicable). 
 
Here are some tips or guidelines for filing their I-T returns online based on my personal experience...
 
1. While we often remain dependent on accounting professionals for tax computation, one can always verify or calculate his/her own tax liabilities. I have been using a very good and free software (actually an Excel file) from a Bengaluru-based software professional Nithyanand. One can download the Excel file from http://www.ynithya.com/taxcalc/taxcalc/TaxCalc_2015.xlsx and calculate your approximate tax liabilities. 
 
This simple utility comes with an excellent help or guidelines, for using which all you need to do is enter your data. Once done, it gives a fair idea about your approximate income tax liability, and whether you had paid the tax in full or not. (In case it is not paid in full, you can always pay it through the NSDL website or online banking after selecting the appropriate challan. After making the payment, you would receive a challan identification number that is required for filing the actual return form.)
 
2. Visit the I-T department site for filing returns online— https://incometaxindiaefiling.gov.in/. Under the Services menu, click on Submit Returns/Forms’. If you are already registered, then simply log in. If not, you can register as a new user and then log in. You can visit the site and download forms without login as well, but for submitting tax returns online, one needs to be a registered user and then log in.
 
3. After login, select appropriate Income-Tax return (ITR) form. There are five types of ITR forms, ITR-1 or Sahaj, ITR-2, ITR-2A, ITR-3, ITR-4 and ITR-4S (Sugam) for individuals or HUFs having income from presumptive business. If you do not have any other income except from salary, you can select ITR-1. 
 
4. Download the small file or return preparation software as the I-T department calls it. This comes in .zip format that can be unzipped to open an Excel file. There is also a help file that is downloaded along with this software, which you can refer to for enabling macros, if needed.
 
5. Open the Excel file. Fill in the data on the first page using your Form 16 and Nithya’s calculator. You need to fill in all fields marked in green colour. If you have a home loan for a self-occupied house, then you can mention the interest paid using '-' sign in the income from one house property column. (Principal on home loan up to Rs1.50 lakh is exempted under chapter VI (Section 80C), while interest paid on housing loan up to Rs2 lakh is exempted under Section 24 of the I-T Act) Check and verify the data you filled in the form. Double-check and verify it with your source files or with Form 16 and Nithya’s calculator. Then click on the ‘Validate’ tab at the top corner on the right side. This will show if there is any data missing. If every field is filled in, it will give you an OK. You can then click on ‘Next’ tab.
 
6. This will open the second page (TDS). Here you need to fill in details like tax deduction number (TAN) of your employer/s (It is mentioned in the Form 16), and the tax deducted or TDS (Section 19/20 on the form). You need to provide same details of other employer/s if there is a change in the job during the year. In case, you have paid the tax on your own, then provide the details like BSR code, challan number and amount in Section 21 IT near the bottom of the page. Repeat the validation process and if everything is OK, then go to next page.
 
7. On the next page, you need to provide total number of savings and current bank account number held by you and IFS code/s of the bank/s (it is mentioned on your chequebook) and type of account. Make sure that the main bank account number, you are providing, is your regular and personal account rather than salary account for receiving refund, if any. 
 
8. Fill in other details like your name, place, PAN number and date. Double-check and verify all data you had entered on this page. If everything is right and there are no errors, click on the ‘validate’ tab. After a validation check, click on the ‘Generate’ tab on first page. This will create an XML file. Store it on your PC/desktop or laptop.
 
9. Login to the https://incometaxindiaefiling.gov.in using your username and password. Click on the Submit Returns/ Forms' under the Services tab. Select the relevant form (here ITR-1) and assessment year (here AY2015-16). If you have digital signature then you can use it. Otherwise, you can select 'No' option and proceed. 
 
10. For attaching the ITR XML file, browse to the location where you had saved the XML file and click on ‘Submit’ button.
 
11. If the uploading is successful, you will get an on-screen acknowledgement. Take a printout (in black colour, inkjet of laser jet only) of the acknowledgement or ITR-V form. You would also receive the acknowledgement on your registered email ID. This is a password protected file. You can read the directions in the email to open this file.
 
12. If you are using digital signature, then after receiving the acknowledgement, the process for e-filing is over for you. Although Moneylife does not recommend (the UID), but in case you have an Aadhaar number, then you can e-verify the ITR-V, so that you do not have to send a signed physical copy of the form. E-verification can also be done using e-filing one time password (OTP) received either through registered email or mobile number or through netbanking login. You can then skip below steps.
 
13. In case you are not a using digital signature for filing returns, you need to sign on the acknowledgement or ITR-V form. Make a Xerox copy of this signed form. Send the signed form to...
 
Income Tax Department – CPC,
Post Bag No - 1,
Electronic City Post Office,
Bengaluru - 560100, Karnataka
 
Use ordinary post or Speed Post (without acknowledgment) for sending the form, within 120 days after submitting your returns online. The I-T Department does not accept forms sent through registered post or courier.
 
14. Remember, you just need to send the signed acknowledgement or ITR-V form. There is no need to send either Form 16 or any other document to the CPC. However, keep all relevant documents safely in your possession.
 
15. After few days, you will receive an email from the CPC that would acknowledge the receipt of your ITR-V form. This makes the e-filing of your I-T returns for FY2014-15 or for AY2015-16 complete.

User

COMMENTS

Ramakrishna Reddy Yekulla

1 year ago

You do not need to send the returns to Central Processing Center, Income Tax department in anymore if you E-Verify it.

Anand Vaidya

1 year ago

Thanks for the very useful article.

One can also check the tax liability on Income Tax website by entering income/exemptions data here:

http://www.incometaxindia.gov.in/Pages/t...

Shashank S

1 year ago

Hi!!

Although i have reservations over point no 4 & 5 i shall let it pass.

In point number 13 you have completely forgot to addfrom this year there is no need to send Physical copy to CPC bangalore. You can e verify it. Please include this point.

Otherwise this article will look like a rehash of last years article with year changed at respective places.

REPLY

Pravesh Pandya

In Reply to Shashank S 1 year ago

Agree. The content is same except for the first few paragraphs. No mention of eVerification either.

Yogesh Sapkale

In Reply to Shashank S 1 year ago

Thanks for your comment and suggestions. Unfortunately, since the government has not changed the process, so it may appear to be rehash. But a careful reading would reveal it is not.
Another points it e-verification, which is not mandatory and those without the UID number will have to send the physical copy, in any case.
Thanks again,
Yogesh

nitin joshi

In Reply to Yogesh Sapkale 1 year ago

Yogesh,
One point.
e-Verification can be done w/o UID also through Net Banking.
Thats how I have done it.
My status says e-Verified and EVC processed.
I am just wondering do you think I still need to send physical ITR-V?

Our Beef with the Doctors
When doctors are sued for malpractice
 
Doctors are, often, at the receiving end of malpractice suits, and with disastrous results. The matter was getting so out-of-hand that many countries, especially litigation-prone ones, decided to cap damages. Otherwise, insurance companies would either refuse, or hike, insurance premiums. 
 
Normally, a malpractice suit would have a procedural or diagnostic failure as the cause of action. Yet, one case centred on defamation by a doctor, coupled with malpractice. The complainant was fast asleep, under sedation. It also involved a third factor, admissibility of evidence when the recording is not authorised and unknown to the accused.
 
Dr Shah is a specialist. He was carrying out a procedure along with an anaesthesiologist, a doctor who administers and controls the sedation on the patient. The patient was a lawyer! It became a potent combination, as unfolding events will show.
 
It is common practice, in an operation theatre, for doctors to banter. It may be the stress or boredom. But they talk. And joke and, often, the jokes veer towards the anatomy, because that is what they have before them. And, as doctors, they have been sensitised to jibes involving body parts. During an operation to mend a broken leg, in 1976, this author was subjected to some such light-hearted stupidity. Not aware that the pethidine had worn off, someone joked about asking me, when I got up, about her future. She had misheard ‘psychic’ for ‘cyclist’. Next problem; the drill had been misplaced. It was found in the adjoining operation theatre. Someone joked, “They must be wanting to make another hole.” That patient was in for piles. 
 
Back to our lawyer, unconscious on the table. The reports say that he was not a brave sort and had asked myriad questions prior to the sedation. He was also worried about some rash on his genitals. Not wanting to miss out on the post-procedure instructions, he had switched on his mobile phone to record them. Someone had picked up his trousers, phone in pocket and still recording, and placed them under his table. Evidence that was admitted and proved inconvenient.
 
Haemorrhoids are growths. Most people have them. But, when one has inflamed, or ulcerated haemorrhoids, he is said to ‘suffer from them’, the term being used as a disease. Suffering from ‘haemorrhoids’. What our lawyer went through is both funny and sad since he was in for nothing, definitely not for ‘haemorrhoids’. 
 
The doctors started with ridiculing him for his anxiety. They referred to his body parts, the private ones, and suggested that he may have sexually transmitted diseases. All this was small talk to keep the atmosphere alive, as it were. After all, the jokes were on the patient who was in deep sleep! Nary a word would reach his ears. Or so the doctors thought.
 
Next came the haemorrhoids. None was perceived as diseased. So, the doctors decided to ‘doctor’ the report. From jokes, it went to cheating—a crime.
 
On his way home, the patient switched on the phone and was subjected to his recorded ridiculing. The forged report was discussed while he lay comatose. He did what lawyers do. He sued. The asking sum was a cool US$1.7 million. Now you be the judge.
 
He got US$500,000. Not bad for an afternoon’s visit to a clinic. The doctors have since been shooed away. The clinic has expressed its regrets. This happens in India, too. An advocate friend complained to his client, a doctor, about stomach pains. The doctor quoted a fee. Our friend said he could not afford it. They settled for a lower amount, the maximum mediclaim allowed. Procedures were performed. Tablets were administered. The pain subsided. The lawyer had an uncle, a septuagenarian, who was a general medical practitioner, in the old mould, and he asked to see the reports. He asked one question: “Where is it indicated that you had stones?” What a few analgesic pills would have cured had cost many thousands of rupees… finally paid by all of us as higher premium. Where, and when, will it all stop?
 

User

COMMENTS

Meenal Mamdani

1 year ago

Two types of malpractice are described in this article. The first kind where medical staff talk about the patient imagining him unconscious and then have to pay a hefty sum for causing mental anguish. In USA damages are awarded for non-quantifiable losses like pain and suffering while in most other countries damages are based on actual loss to the patient like say loss of use of an arm or a leg.
The second incident quoted is fraud, where a doctor treats deliberately for a nonexistent problem. This kind would be criminal offense, not just civil one.
As to author's last comment, where will it end, I guess that depends on the maturity of the insurance marketplace. There is no reason why a doctor should charge a patient 3 or 4 times as much as soon as he finds out that the patient has insurance. This should be investigated and the insurance company should beat down the doctor's charges or else patient told to go to another doctor whose charges are more reasonable.
Unless patients revolt, doctors will continue to charge higher fees to those who have insurance and insurance companies too lazy to haggle with the doctor, will pass the charges on to customers as higher premiums.
The bottom line is patients must stop treating doctors like gods, read up on their conditions on the Internet, ask pertinent questions and get a second opinion wherever feasible. I am a physician and I would much rather deal with a well informed patient than one who has "faith" and has unrealistic expectations.

Nifty, Sensex may rally - Wednesday closing report
If Nifty holds Wednesday’s lows, it may rally till 7,970
 
We had mentioned in Tuesday’s closing report that NSE’s CNX Nifty and S&P BSE Sensex may head higher however, there could be plenty of intraday volatility. On Wednesday, benchmarks in the Indian stock market were unable to sustain Tuesday’s recovery after the crash on Monday. The market fell again on Wednesday by over 1% and the bulls have beaten a retreat. 
 
 
Weakness in the Chinese market, despite an interest rate cut, weakness in the US markets on Tuesday and the upcoming derivatives expiry led to the 30-stock Sensex, shedding 318 points on Wednesday. Sensex opened at 26,063.27 points, closed at 25,714.66 points -- down 1.22% from its previous close at 26,032.38 points. The Sensex touched a high of 26,156.61 points and a low of 25,657.56 points during intra-day trade. The broader 50-scrip Nifty too closed lower at 7,791.85 points, with losses of 88.85 points, or 1.13%. 
 
What worried the market participants is the China’s interest rate cut administered by the People's Bank of China (PBOC) inter-policy decision on Tuesday. The move looked desperate. It might have propped-up the currency markets a bit, but its impact on yuan and thereafter the Indian rupee can be counter-productive.
 
The yuan has fallen by 4.6% till now since 11th August. 
 
The rate easing in China coupled-with a stalled domestic reforms process has greatly damaged the investors’ morale in the Indian markets.
 
Sector-wise, out of the 12 BSE sub-indices, only power and metal managed to remain in the green. 
 
The S&P BSE banking index plunged by 331.35 points, the healthcare index plummet by 198.20 points, capital goods index receded by 147.88 points, the automobile index declined by 124.04 points and the information technology (IT) index fell by 105.14 points.
 
On the other hand, the S&P BSE power index gained by 29.54 points and metal index was up 16.37 points.
 
Major Sensex gainers in Wednesday's trade were: BHEL, up 3.45% at Rs.240.20; Tata Motors, up 2.31% at Rs.336.80; Bajaj Auto, up 1.79% at Rs.2,244.15; Wipro, up 1.46% at Rs.549.75; and Coal India, up 1.22% at Rs.358.20.
 
The major Sensex losers were: HDFC, down 3.77% at Rs.1,102.45; Hero MotoCorp, down 3.45% at Rs.2,391.95; Mahindra and Mahindra, down 3.07% at Rs.1,215.30; State Bank of India (SBI), down 3% at Rs.245.80; and Bharti Airtel, down 2.57% at Rs.339.75.
 
The top gainers and top losers in the major indices are given in the table below:
 
 
Among the Asian markets, Japan's Nikkei gained by 3.20%. However, China's Shanghai Composite Index lost 1.30% and Hong Kong's Hang Seng dropped by 1.52%.
 
The closing values of the major Asian indices are given below:
 
 
European markets opened sharply lower but have managed to recover all their losses. 

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