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					New Income Tax Returns


   Study Circle Meeting
   Bangalore Branch of SIRC of ICAI
   18th June 2009
Introduction

    Central Board of Direct Taxes (CBDT) have
     notified the new returns of income tax for the
     assessment year 2009-10.

    Let us try to understand these new returns in
     a question and answer session.




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Q. How many types of new returns have been
   notified by the CBDT?

A. In all, 8 types of income tax returns have
    been notified by the CBDT viz;
    ITR-1,        ITR-2,     ITR-3,     ITR-4,
    ITR-5,        ITR-6,     ITR-7 and ITR-8.



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Q. Who can use ITR-1?


A. ITR-1 is meant only for individuals having
    income from salary / pension / family
    pension and not having any other income
    except income by way of interest
    chargeable under the head “income from
    other sources”.

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Q. Can an individual having salary income and
   also some exempted income (dividend) use
   form ITR-1?

A. ITR-1 can not be used if the individual has
    any other income (except interest income)
    in addition to his salary income. Therefore,
    if he has dividend income (even though
    exempt), he cannot use ITR-1.

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Q. Can an individual having only interest
   income use ITR-1?



A. No. ITR-1 can be used only if the individual
   has salary income. In this case he should
   use ITR-2.


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Q. Who can use ITR-2?

A. Individuals and HUFs not having any income
    under the head “Profits or Gains of Business
    or Profession” can use ITR-2. In other
    words, individuals and HUFs having income
    under the head “Profits or Gains of Business
    or Profession” cannot use form ITR-2.


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Q. Can an individual having only salary income
   use ITR-2?



A. No. An individual having only salary income
   should use ITR-1 and he should not use
   ITR-2.


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Q. Who can use ITR-3?




A. Individuals and HUFs being partners in firms
    and not carrying on any business or
    profession as proprietors can use ITR-3.


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Q. Who can use ITR-4?




A. Individuals and HUFs having proprietary
    business or profession can use ITR-4.



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Q. Can an individual having a proprietary
   business and also being a partner in a firm
   use ITR-4?


A. Yes. Individual being a partner and also
    carrying on proprietary business should use
    ITR-4.


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Q. Who can use ITR-5?




A. ITR-5 is meant for firms, AOPs and body of
    individuals. This is a combined return for
    income as well as fringe benefits.


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Q. Who can use ITR-6?




A. ITR-6 is meant for companies (other than
    companies claiming exemption under
    section 11, I.e.section 25 – companies).


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Q. Who can use ITR-7?




A. ITR-7 should be used by charitable trusts,
    political parties, section 25 compnaies,
    institutions claiming exemption from tax and
    universities, colleges, etc.

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Q. Who can use ITR-8?




A. ITR-8 is a stand-alone fringe benefit tax
    return and it can be used by assessees who
    are not required to file their return of income
    but, are required to file their return of fringe
    benefits.
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Q. When does one get to use ITR-8?




A. E.g. An AOP whose income is below the
   maximum exemption limit is not required to
   file its return of income. In such cases, if it
   is liable for fringe benefit tax, it is required to
   file return of fringe benefits in ITR-8.
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Q. Can an AOP which has income below the
   maximum exemption limit and liable to pay
   FBT use ITR-5 instead of ITR-8?


A. No. The instructions for ITR-5 makes it clear
   that it cannot be used by a person who is
   required to file ITR-8.


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Q. Where can one get these forms from?




A. These income tax return forms can be
   downloaded at
   http// incometaxindia.gov.in


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Q. Which is the income tax rule which
   prescribes the form and the manner in
   which income tax return is required to be
   furnished?

A. Rule 12 of the Income Tax Rules, 1962
   provides for the form and the manner in
   which income tax returns are required to be
   furnished.

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Q. What are the different modes of furnishing
   the income tax returns available for a
   company?
A. A company can file its return of income in
    any of the following 2 modes;
     i.     Electronically furnishing the return under digital
            signature or
     ii.    Transmitting the data information electronically
            and thereafter submitting the verification of the
            return in form ITR-V
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Q. How can partnership firms covered u/s 44AB
   furnish their returns?

A. They can furnish their returns in any of the
    following 2 modes.
     i.     Electronically furnishing the return under digital
            signature.
     ii.    Transmitting the data information electronically
            and thereafter submitting the verification of the
            return in form ITR-V.

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Q. How can individuals, HUFs, AOPs, body of
   individuals and firm not covered by 44AB
   furnish their returns?
A. They can furnish their returns in any of the
    following 4 methods.
    i.   Furnishing the return in a paper form.
    ii. Furnishing the return electronically under digital
         signature.
    iii. Transmitting the data in the return electronically and
         thereafter submitting the verification of the return in
         form ITR-V.
    iv. Furnishing a bar-coded return in a paper form.
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Q. How does charitable / religious trusts,
   political parties and other non profit
   organization should furnish their returns?


A. Such assessees must furnish their returns
   only in paper form.



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Q. Can the returns prescribed for assessment
   year 2009-10 be used for filing the returns
   of income of earlier years? Say A. Y. 2008-
   09?

A. No. The returns meant for 2009-10 can be
   used only for the assessment year 2009-10.
   For earlier years, the returns meant for
   those respective years alone can be used.

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23                       ITR-1

Q. How does ITR-1 look
    like?




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24                       ITR-2

Q. How does ITR-2 look
    like?




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25                       ITR-3

Q. How does ITR-3 look
    like?




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26                       ITR-4

Q. How does ITR-4 look
    like?




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27                       ITR-5

Q. How does ITR-5 look
    like?




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28                       ITR-6

Q. How does ITR-6 look
    like?




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29                       ITR-7

Q. How does ITR-7 look
    like?




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30                       ITR-8

Q. How does ITR-8 look
    like?




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31                       ITR- V

Q. How does ITR-V look
    like?




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Q. Is there any requirement to attach TDS
    certificates, audit reports, etc., to the
    returns?


A. No. Income tax rule 12 provides that the
   returns of income shall not be accompanied
   by any attachments / annexures.


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Q. Is there any exception to these rules?



A. Yes. In the case of charitable / religious
    trusts, political parties and other non profit
    organizations who are filing their returns in
    ITR-7 are required to attach audit reports,
    advance tax challans, etc. (as was the case
    earlier) along with the return of income.
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Q. Is there any requirement of production of
    computation of income tax, copies of
    balance sheet, profit and loss account, TDS
    / TCS certificates, proof of payment of
    advance tax or self assessment tax etc.,
    before any authority?
A. Yes. In case jurisdictional assessing officer
    legally demands production of any of the
    above, the assessee is duty bound to
    produce such documents before him.
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Q. In the case of electronic filing of return when
    does the assessee obtain his tax audit
    report?

A. The tax audit report is required to be
   obtained before furnishing of the e-return.
   The assessee is required to mention the
   date and other particulars of tax audit
   report in his return of income.

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Q. Is there any requirement of filing transfer
    pricing report?



A. Yes. Transfer pricing report in form 3CEB is
    required to be filed before the due date of
    filing of the return and it is to be filed with
    the jurisdictional assessing officer.

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Q. What are the steps involved in furnishing the
   return electronically under digital signature?
A. First of all the user should register himself at the website
    http// www.incometaxindiaefiling.gov.in
    The return information should be filled in an excel file.
    Thereafter, the excel file should be converted into XML
    file. Affix the digital signature. Thereafter, using the
    return submit option in the website, return should be
    filed. With this, the process of furnishing the return will
    be complete in all respects. If the return is digitally
    signed, the system will generate an acknowledgement
    which should be kept for reference.
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Q. What is the procedure for furnishing the return
    electronically but without digital signature?
A. First of all the user should register himself at the website
      http// www.incometaxindiaefiling.gov.in
      The return information should be filled in an excel file.
      Thereafter, the excel file should be converted into XML file.
      Thereafter, using the return submit option in the website, return should
      be filed. There will not be any affixation of digital signature. The
      system will generate an acknowledgement which should be kept for
      reference.
      The system will also generate a bar-coded ITR-V.
      The ITR-V that is generated by the system should be sent by post to
      the Income Tax Department-CPC, Post Box No. 1, Electronic City Post
      Office, Bangalore – 560 100, Karnataka.
      The filing of the return will be complete once the ITR-V is posted.
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Q. Is there a time limit for sending the ITR-V?




A. ITR-V should be posted within 30 days from
    the date of transmitting the data
    electronically.


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Q. What happens if it is not posted within 30
   days? Or posted beyond 30 days?



A. It will be treated as if the return of income is
    not filed.



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Q. If transmitting the return data electronically
    is followed up with ITR-V, what will be the
    date of filing the return?


A. The date of transmitting the data
   electronically will be treated as the date of
   furnishing the return.


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Q. Is ITR-V required to be signed by the
    assessee?



A. Yes. ITR-V is required to be signed by the
    assessee and if it is not signed, it will be
    considered as invalid.


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Q. What happens if the ITR-V is sent beyond
   30 days?



A. It will be treated as if the assessee has
    never been furnished his return and he has
    to go through the process of filing the return
    all over again if he wants to file his return.

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Q. How will CPC match the ITR-V with the
   return of income?



A. ITR-V is bar-coded and using the bar-code,
    CPC will match ITR-V with the return.



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Q. How does one know that CPC has received
   ITR-V?



A. CPC is expected to send e-mail
   acknowledging the receipt of form ITR-V



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Q. Is there any time limit prescribed for sending
    the email?



A. No. There is no time limit prescribed for
   sending the e-mail acknowledgement.



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Q. Can ITR-V be filed with the jurisdictional
   assessing officer?



A. No. ITR-V cannot be filed anywhere else
   other than CPC.



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Q. Can ITR-V be filed across the counter in
   CPC?



A. No. ITR-V can be sent only by post.




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Q. Is there only one CPC for the whole of
    India?



A. Yes. At present, there is only one CPC
    situated in Bangalore which will process the
    returns filed electronically by assessees all
    over India.

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Q. Who will process the paper returns?




A. In due course of time, these will also be
    processed by the CPC but, till such time as
    the infrastructure is put in place, these
    returns will be processed by jurisdictional
    assessing officers.

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Q. How does the processing happens in CPC?

A. The computer system in the CPC will
   process the data furnished electronically
   and match the data for tax deducted at
   source, tax collected at source, advance tax
   and self assessment tax with the
   independent information received from the
   deductors, collectors and bankers.

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Q. How will the matching of these data done?



A. The matching of the data is done by using
   the unique transaction numbers and challan
   identification numbers. Therefore, proper
   mentioning of these numbers is very
   essential.

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Q. Can the returns of income be filed without
   UTN?


A. The returns can be filed without UTN but,
   without UTN credit for pre-paid taxes will not
   be given. Therefore, for filing the returns of
   income for the assessment year 2009-10, it
   is essential that assessees wait to get the
   UTN in respect of their pre-paid taxes.
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 and Finally




                 S. Vishnumurthy
               VISHNU RAM & CO.
                    23568910
                   9880034940
                vishnu@vishnuram.in

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