Skip to main content

Income Tax Return - SAHAJ

Only salaried individuals, pensioners or those earning interest income can use the new form

There is a lot that tax payers can cheer about. Not only has a more user friendly income tax return (ITR) form been introduced, but the time limit for getting an acknowledgement of efiling of returns for assessment year 10-11 (financial year 09-10) has also been extended till July 31, 2011.

In his budget speech the Finance Minister, Pranab Mukherjee, had indicated that the tax filing process would be made simpler. True to his word, on April 5, the Central Board of Direct Taxes (CBDT) notified the issue of the tax return forms for financial year 10-11 (assessment year 11-12). It introduced SAHAJ (Income Tax Returns -1), which replaces the erstwhile SARAL-II. SAHAJ is a two-page form that, prima facie, seems far more straightforward than its last year's counterpart.

SPECIFIC TAXPAYER GROUP

However, SAHAJ is restricted to a specific taxpayer group only. These are individuals having income from salary/ pension/ income from one house property/income from other sources. In other words, those who earn a living only from salary, pension or interest income may use this form. Even within this group, owning more than one house makes one ineligible. Some believe that these are unfair conditions.

One can save in bank deposits, post office instruments, PPF and even mutual funds or equity. But if the taxpayer were to earn long term capital gains (exempt or otherwise) from such mutual fund and / or equity investments, it would make him ineligible to use SAHAJ. Similarly with the second house property senior citizens or retirees may have over the course of time acquired a second house, the rental income of which is used to augment their pension. But since having a second house makes one ineligible, this group too will not be able to use SAHAJ.

In another significant move that may bring cheer to many if not all taxpayers, the much feared annual information return (AIR) schedule seems to have been dropped from all forms. Until last year, it formed a part and parcel of the ITR form. This schedule required a disclosure of transactions such as deposits over `10 lakh, mutual fund investments or credit card payments of over `2lakh, property transactions over `30 lakh, purchase of RBI bonds over `5lakh and so on. It was a cause of distress and disgruntlement amongst tax payers and was deemed to be an invasion on the privacy of the taxpayer. Many people, who otherwise honestly pay up their taxes, even went to the extent of investing an amount slightly lower than the specified limits, just to escape furnishing this information.

Well, for the current tax filing, it looks like this requirement has been dropped altogether. However, the forms have just been put up on the website and the instructions that normally accompany the forms could not be accessed. Upon an initial perusal, there was no AIR schedule in the forms. However, there might be a change in this position.

EFILING YOUR RETURNS

Earlier, filing ITR meant waiting endlessly in long winding queues at the income tax office. With the advent of technology, all that is history.

Even though returns can be filed electronically today, many are still not familiar with digital filing. But once, you do so, you will realise that the process is simple and ultimately results in the return getting processed much faster and more efficiently than the physical filing mode.

Logging online, one will need to download the softcopy of the required return form. An XML file needs to be generated and submitted. Maintaining the record of the acknowledgement is important. In case you are using a digital signature, on generation of "acknowledgement" the return filing process gets completed. You may take a printout of the acknowledgement for your record. In case the return is not digitally signed, on successful uploading of e-return, the ITR-V Form would be generated which needs to be printed by the tax payers. This is an acknowledgement cum verification form. A duly filled ITR-V form should be mailed to the Income Tax department at Bangalore by ordinary post or speed post only within 120 days after the date of transmitting the data electronically.

Taxpayers need to note that as per an order dated February 10, 2011, the time limit for filing the ITR-V forms (120 days from filing the return as mentioned above) has been extended up to 31 July, 2011. The stipulation of 120 days meant that for the FY 09-10 (AY 10-11) filing (the last date for which was July, 2010), the ITR-V form had to be submitted before 30 November, 2010. Now as a final opportunity for those taxpayers who have not yet sent their ITR-V forms, the last date has been extended to July 31, 2011.

GET ONLINE FOR EASY FILING

Log on to

www.incometaxindiaefiling.go v.in

Select appropriate type of return form

Download Return Preparation Software (link provided on the website) for selected Return Form

Fill your return offline and generate an XML file.

Register and create a user id / password

Login and click on relevant form on left panel and select "Submit Return"

Browse to select XML file and click on "Upload" button

Successful upload shows acknowledgement details. Get printout of acknowledgement /ITR-V Form

Generation of acknowledgement completes the return filing process if using a digital signature.

A duly filled ITR-V form should be mailed to Income Tax Department, Bangalore within 120 days of the electronic filing.

Popular posts from this blog

Am you Required to E-file Tax Return?

Download Tax Saving Mutual Fund Application Forms Invest In Tax Saving Mutual Funds Online Buy Gold Mutual Funds Leave a missed Call on 94 8300 8300   Am I Required to 'E-file' My Return? Yes, under the law you are required to e-file your return if your income for the year is Rs. 500,000 or more. Even if you are not required to e-file your return, it is advisable to do so for the following benefits: i) E-filing is environment friendly. ii) E-filing ensures certain validations before the return is filed. Therefore, e-returns are more accurate than the paper returns. iii) E-returns are processed faster than the paper returns. iv) E-filing can be done from the comfort of home/office and you do not have to stand in queue to e-file. v) E-returns can be accessed anytime from the tax department's e-filing portal. For further information contact Prajna Capit...

National Savings Certificate

National Savings Certificate Here's everything you need to know about the 5-year savings scheme offered by the Government This is a 5-year small savings scheme of the government. From 1 July 2016, a National Savings Certificate (NSC) can be held in the electronic mode too. Physical pre-printed NSC certificates have been discontinued and replaced with Public Provident Fund-like passbooks. What's on offer The minimum amount you can invest in them is Rs100 and there is no upper limit. Under this scheme, all deposits up to Rs1.5 lakh qualify for deduction under section 80C of the Income-tax Act, 1961. The interest earned is taxable. You can invest in multiples of Rs 100. These certificates can be owned individually, jointly and also on behalf of minors. The interest rates for all small savings schemes are released on a quarterly basis. The effective rate for NSC from 1 October to 31 December is 8%. The interest is calculated on an annual compounding basis and is given along w...

Mutual Fund Review: HDFC Index Sensex Plus

  In terms of size, HDFC Index Sensex Plus may be one of the smallest offerings from the HDFC stable. But that has not dampened its show, which has beaten the Sensex by a mile in overall returns   HDFC Index Sensex Plus is a passively managed diversified equity scheme with Sensex as its benchmark index. The fund also invests a small proportion of its equity portfolio in non-Sensex scrips. The scheme cannot boast of an impressive size and is one of the smallest in the HDFC basket with assets under management (AUM) of less than 60 crore. PERFORMANCE: Being passively managed and portfolio aligned to that of the benchmark, the performance of the index fund is expected to follow that of the benchmark and in this respect, it has not disappointed investors. Since its launch in July 2002, the fund has outperformed Sensex in overall returns by good margins.    While every 1,000 invested in HDFC Index Sensex Plus in July 2002 is worth 6,130 now, a similar amount invested in Sensex then wo...

Different types of Mutual Funds

You may not be comfortable investing in the stock market. It might not seem like your cup of tea. But you can start by investing in Mutual Funds. Many first-time investors invest in Mutual Funds. This is because they do not know how to invest in individual securities. Basic information on Mutual Funds People invest their money in stocks, bonds, and other securities through Mutual Funds. Each Fund has different schemes with specific objectives. Professional Fund Managers look after these schemes. Your Fund Manager could help you invest in a scheme that suits your financial goal. Functioning of Mutual Funds You could make money through Mutual Funds in different ways. A single Mutual Fund could hold many different stocks, bonds, and debentures. This minimizes the risk by spreading out your investment. You could earn dividends from stocks and interest from bonds. You could also earn capital by selling securities when their price increases. Usually, you could choose to sell your share any t...

IDFC - Long term infrastructure bonds - Tranche 2

IDFC - Long term infrastructure bonds What are infrastructure bonds? In 2010, the government introduced a new section 80CCF under the Income Tax Act, 1961 (" Income Tax Act ") to provide for income tax deductions for subscription to long-term infrastructure bonds and pursuant to that the Central Board of Direct Taxes passed Notification No. 48/2010/F.No.149/84/2010-SO(TPL) dated July 9, 2010. These long term infrastructure bonds offer an additional window of tax deduction of investments up to Rs. 20,000 for the financial year 2010-11. This deduction is over and above the Rs 1 lakh deduction available under sections 80C, 80CCC and 80CCD read with section 80CCE of the Income Tax Act. Infrastructure bonds help in intermediating the retail investor's savings into infrastructure sector directly. Long term infrastructure Bonds by IDFC IDFC issued an earlier tranche of these long term infrastructure bonds on November 12, 2010. This is the second public issue of long-te...
Related Posts Plugin for WordPress, Blogger...
Invest in Tax Saving Mutual Funds Download Any Applications
Transact Mutual Funds Online Invest Online
Buy Gold Mutual Funds Invest Now