In our earlier articles on Filling ITR Form in excel, we covered Fill Excel ITR form : Personal Information,Filing Status and Fill Excel ITR1 Form : Income, TDS, Advance Tax. This article covers filling of information for 80G, bank details, exempt income,verification,bank details, computation of tax, submitting the return.
Table of Contents
If you have you donated money for charity, social or philanthropic purposes, or, have made contributions towards a National Relief Fund, then you could use these donations to reduce your tax outgo by using tax benefits under Section 80Gof Income Tax Act. Qualifying amount is the maximum amount you can claim as deduction. For example for Section 80C you can invest in EPF,PPF, Life Insurance Policies etc but the Qualifying amount or maximum amount that you can claim is Rs 1,00,000. In section 80G how much amount can one claim depends on the institution to which one donates.
- 80GA : Donations entitled for 100% deduction without qualifying limit such as National defense fund , Prime minister relief fund etc.
- 80GB : Donations entitled for 50% deduction without qualifying limit such as National Children’s Fund,Indira Gandhi Memorial Trust
- 80GC : Donations entitled for 100% deduction subject to qualifying limit
- 80GD : Donations entitled for 50% deduction subject to qualifying limit
Some features of Section 80G are :
- Only donations in cash or cheque are eligible for the tax deduction.
- All donations are not eligible for tax benefits. Tax benefits can be claimed only on specific donations i.e. those made to prescribed funds and institutions.
- For claiming deduction under Section 80G, a receipt issued by the recipient trust,called as donee, is a must. The receipt must contain the name , address & PAN of the Trust, the name of the donor, the amount donated .
- In case of donation which are eligible for 100% deduction recipient should also insist on Form 58 from trust.
- In case of certain funds or institutions, donations above 10% of your Adjusted Gross Total Income (GTI) are allowed for deduction only upto 10% of your adjusted GTI. For example:
- You have an income of Rs. 7 Lakhs in a year.
- You have invested Rs. 1 Lakh under Section 80C .
- You also make a donation of Rs. 1.5 Lakhs to a charitable institution having an 80G certificate from the income tax department.
- If the allowable deduction is 50% of the amount donated, subject to an upper limit of 10% of the adjusted GTI then amount that can be claimed for deduction is as follows :
- Adjusted GTI = Rs. 7,00,000 – Rs. 1,00,000 = Rs. 6,00,000
- Qualifying amount(10% of GTI) = Rs. 60,000.
- Amount eligible to be claimed as deduction under section 80G is: 50% of qualifying amount = 50% of Rs. 60,000 = Rs. 30,000
Information that needs to be filled in is shown in picture below :
Bank Details and Exempt Income
On the Tab Taxes Paid and Verification enter the bank details whether you have a refund or not. Fill in the following details (marked in red) as shown in picture below
- Bank account number (minimum 11 digits as per Core Banking Solution (CBS) system of the Bank).
- Select Yes if you want your refund by direct deposit into your bank account, Select No if you want refund by Cheque
- Quote the IFSC code of the bank if you desire to receive the refund through electronic clearing system (ECS).
- Fill in the Type of Account : Savings,Current etc.
Certain types or amounts of income are not taxed i.e are exempted from income tax. It falls under Section 10 of Income tax Act. Some income which is exempted from tax are given below. TaxFaq’s List of Income that is Exempt from Income Tax gives the full list . It is better to report such income.
- Agricultural income [Sec. 10(1)]
- Leave travel concession(LTC) provided by as employer to his Indian citizen employee [Sec. 10(5)]
- Any amount from provident fund paid to retiring employee [Sec. 10(11)]
- Dividend on or after April, 2003 from domestic companies [Section 10(34)]
- Income on units of Mutual Funds on or after April 1, 2003 [Section 10(35)]
- Long-term capital gains arising on transfer of equity shares or units of equity oriented mutual fund if securities transaction tax is paid. [Section 10(38)]
- Income of a minor child up to Rs. 1,500 in respect of each minor child whose income is to be included under section 64(1A) [Section 10(32) ]
For example if one has interest on PPF and dividend (from stocks or mutual funds),calculation is as follows:
Computation of Tax
Click on tab Income Details. Click on Calculate Tax to calculate the tax that you should be paying for the income and deductions you have declared and compare it with the tax you have paid as shown in figure below.
If you have paid less tax, it would show the difference in the Balance tax payable row as shown below and also in the rows 15-18 of tab Taxes Paid and Verification. If you have paid more tax, it would show the amount in the tax refund row 18 of tab Taxes Paid and Verification
If Balance tax payable amount is more than Rs 10,000, a penalty under section 234 will be levied, as you would have been expected to pay Advance Tax. Calculate Tax would update those fields also.
You need to pay the tax payable amount using Challan 280. You should pay your all your tax due before submitting the income tax return form. If you pay less than what you should pay as per your computation of tax before filing Return , your return may be treated as defective return as per Section 139(9).
- For Assessment Year fill in appropriate Assessment Year For ex: Assessment Year is 2013-14. For filing returns for income earned in 1 Apr 2012 -31 Mar 2013
- For Tax applicable fill in Select 0021 : INCOME-TAX (OTHER THAN COMPANIES)
- For Type of payment Select 300 for SELF ASSESSMENT TAX
After paying it go to Tab TDS and mention the payment details(Seven digit BSR code of the bank branch, Date of Deposit (DD/MM/Year) of tax, Serial Number of Challan) in Advance Tax and Self Assessment Tax as explained earlier.
Again Validate and Compute the tax.
Fill in your name, your father’s name (women tax payer also needs to fill in father’s name only), place from where you are filing your returns, your PAN number and the date. Sign here ->should be left empty in excel ITR.
If the return has been prepared by a Tax Return Preparer (TRP) relevant details have to be filled (which would be filled by TRP himself)
Generation of XML
After validating, (no errors ,warnings) all the entries.
- Click Generate XML.
- Click the Save XML button. Make a note of where the file is located and then click the OK button
Submit your Return
Now that you have the XML file ready, all you need to do is upload it back to the IT website.
- Go to https://incometaxindiaefiling.gov.in
- Login with your PAN number and password.
- Under SUBMIT RETURN, point to Select Assessment Year and then click AY 13-14.
- Choose ITR-1 from the drop down, if you don’t have digital signature, choose No and then click the Next button.
- Use the Browse button to navigate to the saved xml file on your computer.
- Click the Upload button after the file has been located. Click the OK button
- Upload Digital Signature Certificate, if available and applicable.
- Click SUBMIT.
On successful upload, Acknowledgement details would be displayed. If you have not used digital signature you need to send it to the CPC in Bangalore.
- The acknowledgement number is confirmation of the successful submission of your e-returns.
- Click the link to view or generate a printout of Acknowledgement/ITR-V Form.
- ITR-V is also sent to your email id
- Once you have the print out,Sign the form.
- Send the ITR-V form to the CPC within 120 days of uploading the XML. Use only normal post or SpeedPost.
- Address is: Income Tax Department – CPC, Post Bag No – 1,Electronic City Post Office, Bangalore 560100.
Confirmation mail: After IT department receive the duly signed ITR V and verify it, they will send you the acknowledgement mail to your mail-id.
After submitting Income Tax Return: CPC process the returns as per the rules set by Central Board of Direct Taxes. It determines the sum payable to or the amount of refund due to, the person after credit of such Tax collected at Source (TCS), Tax Deducted at Source (TDS) and tax payment claims which are validated with reference to data uploaded. An intimation is generated electronically and sent to the person by e-mail specifying the sum determined to be payable by, or the amount of the refund due to, the person or Nil demand. Our article After filing Income Tax Return explains what happens after submitting the returns.
- Fill Excel ITR form : Personal Information,Filing Status
- Fill Excel ITR1 Form : Income, TDS, Advance Tax
- Income Tax for Beginner, Income Tax For Beginner – Part II
- E-Filing of Income Tax Return
- Paying Income Tax : Challan 280
Due to extra load on the e-filing website, several taxpayers could not file their returns. So the finance ministry has extended the due date for filing income tax (I-T) returns for assessment year 2013-14 (FY2012-13) from 31st July to 5th August 2013.
Hope it helped you in understanding how to fill the income tax return. If there something wrong, or missing Please let us know. Which part of filling ITR you find difficult?