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USER GUIDE FOR FILING INDIVIDUAL INCOME TAX RETURN ON

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USER GUIDE FOR FILING
 INDIVIDUAL INCOME
 TAX RETURN ON-LINE
 USING THE TAXPAYER
  SOFTWARE (TSW)
                                           TABLE OF CONTENTS


1. ABBREVIATIONS IN THE DOCUMENT ............................................................... 2
2. INTRODUCTION ....................................................................................................... 3
3. STEP-BY-STEP GUIDE FOR FILING IT1 RETURN USING TAXPAYER
SOFTWARE (TSW)........................................................................................................... 3
4. GETTING STARTED................................................................................................. 4
5. HOW DO I PUT MY DETAILS IN THE TAXPAYER SOFTWARE? .................... 5
6. HOW DO I CREATE MY RETURN USING THE TAXPAYER SOFTWARE? ..... 6
7. HOW DO I FILL MY INCOME DETAILS FROM SPECIFIED SOURCES? ......... 8
8. HOW DO I FILL MY EMPLOYMENT INCOME DETAILS?............................... 11
9. HOW DO I FILL IN MY PENSION CONTRIBUTION, MORTGAGE INTEREST
OR HOSP CONTRIBUTION DETAILS? ....................................................................... 13
10. HOW DO I FILL IN MY INSURANCE RELIEF DETAILS?................................. 15
11. HOW DO I FILL IN MY PAYE CREDITS, ADVANCE TAX AND OTHER
WITHHELD TAX DETAILS?......................................................................................... 16
12. HOW DO I SAVE MY RETURN FOR SUBMISSION?......................................... 17
13. HOW DO I UPLOAD MY RETURN? ..................................................................... 20




                                                            1
1. ABBREVIATIONS IN THE DOCUMENT

  DRP       Detailed Report
  HOSP      Home Ownership Saving Plan
  IT1       Individual Return
  ITMS      Integrated Tax Management System
  KRA       Kenya Revenue Authority
  P9A       Tax Deduction Card
  PAYE      Pay As You Earn
  PIN       Personal Identification Number
  TSW       Taxpayer Software
  W44       Withholding Tax Certificates




                             2
2. INTRODUCTION

  Under sec. 52B of the income Tax Act ( Not withstanding any other provisions of
  the Income Tax Act), every individual chargeable to tax under this Act shall for
  any year of income, furnish to the commissioner a return of income, including a
  self assessment of his tax from all sources of income, not later than 30th June. If
  you do not submit the Return by this date you will be liable to a penalty at the rate
  of 5% of the net tax due for every period of 12 months or part thereof, minimum
  penalty being Ksh1, 000.
  This document will guide you on how to file your return on-line using the
  Taxpayers Software (TSW).

3. STEP-BY-STEP GUIDE FOR FILING IT1 RETURN USING TAXPAYER
   SOFTWARE (TSW)

  To be able to file your IT1 return online, you will need to register as a user in
  ITMS. To register follow the steps in the online services step-by-step guide
  provided on the KRA website www.kra.go.ke/portal

  You will also be required to download and install the taxpayer software (TSW)
  from the link provided www.kra.go.ke/portal/downloads




                                        3
                                             Download TSW and step by step guide for
                                             registration to ITMS.




   4. GETTING STARTED

To complete your return you will need the following documentation where applicable:
   • Form P9A from Employer.
   • The employer’s PIN. Request PIN from your employer if not already on the P9A.
   • Financial statements for the following incomes; business income, farming income,
      rent income.
   • Mortgage Interest Certificate and PIN of lender
   • Insurance Premium Certificate and PIN of underwriter
   • Withholding tax certificates (W44)
   • Any other documentation relating to income you received or deductions you want
      to claim




                                         4
   5. HOW DO I PUT MY DETAILS IN THE TAXPAYER SOFTWARE?



After downloading and installing the TSW, double click the icon      that
appears on the desktop to get the screen below.




                                                        Click here
                                                        to enter
                                                        your
                                                        details.




                                                      Select
                                                      Individual.




                                           5
                                                        1. Key in the
                                                        details in the
                                                        fields           2. Click
                                                        marked with      save
                                                        asterisks.




    6. HOW DO I CREATE MY RETURN USING THE TAXPAYER
       SOFTWARE?


Use the “tax return” tab then follow the steps below:




Click on
the tax
return tab




                                            6
      Click on the down
      arrow to get a list of
      forms and select IT1.




1. Select the
year.                     2.
                          Click
                          ‘create
                          return’.




                                     Enter details on
                                     fields 5 – 10. (9 &
                                     10 only relevant if
                                     8 is ‘yes’)




     7
    7. HOW DO I FILL MY INCOME DETAILS FROM SPECIFIED SOURCES?

The body of the return is divided into parts A-K

Part A- F:
These parts (A-F) are for the various specified sources of income, other than employment income.
That is, business income (A), income from farming (B), income from rent(C), interest income (D),
insurance commission (E), and other income (F).
    a) First row in each section A-F (row 11, 21,31,41, 47, 57) will require that you fill up a detailed
         report found by clicking in the blank area of the field
    b) Fill in partnership profit/loss on the second row of each of these parts (field 13, 23, 33, 43, 49
         and 59) where applicable.
    c) Fill in loss brought forward from previous year on the fourth row (field 17, 27, 37, 53 and 63)
         of each section where applicable.
    d) If you have no income to declare in any of the above parts (rows), please leave blank and
         proceed to the next part.
    e) If indeed you have no income to declare in all the parts A-F, skip the entire part and proceed
         to Part G.
NB:
             o Do not use brackets or negative signs to denote losses or expenses.
             o For any part that has a detailed report (DRP), fill in details appropriately then
                  click “Save and Accept” to be able to proceed.




                                                   8
Body of the return (section A-
F)




                                     Click inside the first
                                     field of part A – F and
                                     click ‘yes’ to fill the
                                     DRP (where
                                 9   applicable)
After clicking yes, the detailed report below appears. Fill in the relevant fields as per your
financial statement




                                             10
   8. HOW DO I FILL MY EMPLOYMENT INCOME DETAILS?

Part G: Employment income
In this section enter all your income from employment. Supply all the details as contained
in the support/reference documents.
Field 68: Enter gross pay
Field 70: Enter benefits from employment (other than car and housing) e.g. telephone,
domestic servant etc
Field 72: Value of car benefit
Field 74: Enter value of housing if housed by employer
Field 76: Enter pension income (Pensioners only)




Value of Car DRP




                                                                            Click inside field 72
                                                                            and click ‘yes’ on
                                                                            the message to get
                                                                            the DRP below
                                                                            (where applicable)




                                           11
Value of Car benefit
Fill in all the columns as required
For “body type” enter details as follows:
         For a saloon/estates car enter 1
         For Pick Up, Uncovered Panel Van enter 2
         For a Land Rover/Cruiser enter 3




                                                           Click here
                                                           to Save




On the message shown click OK to proceed




                                                    Click OK


                                          12
   9. HOW DO I FILL IN MY PENSION CONTRIBUTION, MORTGAGE
      INTEREST OR HOSP CONTRIBUTION DETAILS?

Part H: Total Taxable Income
This calculates your total taxable income.
Field 82: Enter your actual pension contribution from form P9
Field 84: Enter Mortgage interest (DRP) from mortgage certificate
Field 86: Enter contribution to Home Ownership Savings
Note:
    1. You are only allowed to claim Mortgage interest or contribution to Home
       Ownership Savings but not both.
    2. If you are filing as husband and wife you can only claim on one mortgage account.




                                                             Click inside field 84,
                                                             and on the message
                                                             click ‘yes’ to fill the
                                                             mortgage details




                                          13
        The mortgage interest DRP appears, fill in details appropriately then click save and
        accept.
        Once the message (shown below) appears, click ‘OK’ to proceed.




        For HOSP DRP click field 86 as shown below




Click inside field 86
and click yes to fill
the HOSP DRP
where applicable.

        The Home Ownership Savings Plan (HOSP) DRP appears, fill in details from HOSP
        certificate then click save and accept.
        Once the message (shown below) appears, click ‘OK’ to proceed.




                                                   14
                                                                Click here
                                                                to save
                                                                and accept




   10. HOW DO I FILL IN MY INSURANCE RELIEF DETAILS?


Part I: Tax computation
Field 94: Enter Insurance relief where applicable




                                                                         Click inside row 94
                                                                         and click yes to fill the
                                                                         Insurance relief DRP
                                                                         where applicable.

       The Insurance relief DRP appears, fill in details appropriately then click save and
       accept.




                                           15
Once the message (shown below) appears, click ‘OK’ to proceed




   11. HOW DO I FILL IN MY PAYE CREDITS, ADVANCE TAX AND OTHER
       WITHHELD TAX DETAILS?

Part J: Final tax
Field 99: Enter PAYE credits from P9 (Employees only)
Field 100: Enter advance tax credits from the receipts
N/B Advance Credit will be given only where you have declared income from transport
business.
Field 101: Enter Withheld tax




                                                                            Click inside field 100
                                                                            and click yes to fill the
                                                                            Advance tax Credits
                                                                            DRP where applicable.

The Advance Tax credits DRP appears, fill in details appropriately then click save and
accept.

On the message that appears click OK to proceed with filling the return


                                           16
Note: Enter load capacity in tons e.g. for a 1000 kg load capacity pick-up, the load
capacity should be entered as 1




PART K
In this part you will be required to enter value of Total Installment Tax Paid




   12. HOW DO I SAVE MY RETURN FOR SUBMISSION?

Follow the steps below.
    i) Validate the return by clicking the “Validate” button.
                                                   Click here to validate




                                            17
The message below appears. Press “OK”




   ii) Save the return by clicking on the “Save” button.


                                                              Press here to
                                                              save.

The message below appears. Press “OK”




   iii) Then save for Submission.




                                                           Click here to
                                                           save for
                                                           submission


Once you save for submission, select the folder where the return file will be saved e.g.
My documents. Once you have selected the folder, press the save button as shown below.




                                           18
 1) Select the
 folder.




   2) Click
   Save.




Once you press “Save” the message shown below appears. Press “OK” and the return is
now ready for uploading.




                                         19
   13. HOW DO I UPLOAD MY RETURN?

Follow the steps below.
    i) Log into the online system
           a. Access the KRA portal (www.kra.go.ke/portal)
           b. Select the “Tax Returns Processing” link as shown below.




                                                                         Tax Returns
                                                                         Processing
                                                                         link




c. Log-in using your credentials




                                         20
                                                            Enter your PIN
                                                            Enter your password




    ii) Click on the tab Tax Return. A window as shown below will open. Select the link
        “upload Tax Return”


                                                            1) Select the tab Tax
                                                            Return




                                                                2) Select the link Upload
                                                                Tax Return.




    iii) Locate the return you had saved for submission. Use the browse button to
         navigate to the location of the file.


.




                                                                              1) Click here to
                                                                              locate the return
                                                                              saved.




                                           21
         1) Select the
         return




                                                     2) Click open.




   iv) Upload your tax return by clicking on the “File upload” button as shown below.




                                                                      1) Note that the
                                                                      return path has
                                                                      been appended
           2) Click here to
           upload the return.


     v) The system will then display the message shown below.
NB:
If there is payment to be made, select the link “Confirm E-Slip”. If no payment is to be
made then the only option available will be “View Summary”.




                                            22

				
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