For the current year, there have been a few changes which have been introduced and need to be kept in mind while filing the returns. The tax department has taken steps to make income tax returns filing easier and simple. In the past few years, there have been many improvements and use of technology by the Income Tax Department like introduction of e-filing, online tax payment, digital signature etc.
The Central Board of Direct Taxes has notified these new forms for the assessment year 2009-10:
ITR-1:
The returns of individuals with income from salary, pension, or family pension, and not having any other income except interest income should be filed with this form.
ITR-2:
The returns of income of individuals and Hindu Undivided Families (HUFs) not having any income under the head profits or gains from business or profession should be filed with this form. ITR-3:
The returns of income of individuals and HUFs who are partners in firms and not carrying out business or profession under any proprietorship should be filed with this form.
ITR-4:
The returns of income of individuals and HUFs having proprietary business or profession should be filed using this form.
The returns of income can be furnished in any of these manners:
Paper form Electronically, under digital signature Transmitting the data in the returns electronically and thereafter submitting the verification of the returns on Form ITR-V Bar-coded returns in paper form the returns should not be accompanied by any attachments or annexure. Taxpayers should not enclose with the returns forms any statement showing computation of income or tax, TDS/TCS certificates, proof of payment of advance tax or self-assessment tax. However, these documents will have to be produced before an assessing officer on demand.
All these documents should be retained by the taxpayers. If called for by any income tax authority during any proceeding under the Act, it will be incumbent upon the assessee to furnish them in original. Electronic filing is optional for taxpayers. The e-return has to be furnished at . Further, it is advisable, though not mandatory, to use a digital signature for electronically furnishing the returns. If the return is electronically furnished under a digital signature, the taxpayer is not required to submit the Form ITR-V to the Income Tax Department as a follow-up.
Similarly, any returns which is digitally signed by the assessee and filed with an e-return intermediary (ERI), who, in turn, submits the returns to the Income Tax Department under his digital signature, will also be deemed to have been filed under a digital signature of the assessee and no Form ITR-V is required to be submitted. In such cases, the date of electronic transmission of the data in the returns will be the date of furnishing the returns.
However, if the assessee does not use a digital signature for electronically transmitting the data, he is required to follow-up the electronic transmission with submitting the form ITR-V to the Income Tax Department as a verification of the electronic filing. In such a case, the date of transmitting the data electronically will be the date of furnishing the returns if the Form ITR-V is furnished within 30 days after the date of transmitting the data electronically. In case Form ITR-V is furnished after the 30-day period , it will be deemed that the returns was never furnished , and it will be incumbent on the assessee to electronically re-transmit the data and follow it up with a new Form ITR-V within 30 days.
Since no documents are required to be furnished along with the returns of income, the credit for Tax Deducted at Source (TDS), Tax Collected at Source (TCS), advance tax and self assessment tax will be allowed on the basis of information relating to pre-paid taxes furnished in the relevant schedules of the return forms subject to matching with the information provided by the deductor, collector and the banks. Tax payers need to ensure that the information relating to pre-paid taxes is complete in all respects and correct.
Rules which will be Applicable but postponed for the time being:
Although mentioning Unique Transaction Number (UTN) is not compulsory for the time being but it is likely that once department install the facility to provide and match UTN they will ask for the same even in case of Returns already furnished.
With a view to enabling the matching of information relating to pre-paid taxes furnished by the tax payers, the Income Tax Department has created a system of Unique Transaction Number (UTN) and Challan Identification Number (CIN). Assesses must ensure that the deductor and the collector have provided them with separate UTNs in respect of each TDS and TCS transaction.
Similarly, they must also ensure that the UTN for every TDS and TCS claim in the returns is correctly filled in. Also, they must ensure they fill in the CIN correctly in respect of payments of advance tax and self-assessment tax. In case the returns is filed with a digital signature, the assessee may take a printout of the acknowledgment for his record
Anand Dua ,
Chartered Accountant
M-9810038499
