Joss in the subsequent year.

It
year.
the relevant assessiment

RETURN
18.10 E-FILING OF authorities.
income tax return through online to the
E-fling is the process of
submitting the
assessee whose total income from business
E-flingwith digital signature is mandatory for those for individuals and HUF whose accounts
E-filing is now mandatory a week. Documents can
be
exceeds l crore or more. hours a day, seven days
can be done 24 and effective than manual
have to audited u/s 44AB. It is more convenient
attached and accessed anywhere and anytime. It

filing.
OF RETURN
18.11 PROCEDURE FORE-FILING
followed to made e-filing of return of income.
to be
The following are the steps
1) Visit www.incometaxindiaefiling.gov.in
for the
form and download Return Preparation Software
2) Select the required ITR
selected form
return
Prepare return offline and follow simple steps to upload the
3) the return is
the acknowledgement form if
the print of
4) On successful upload take verification code
digitally signed or under electronic
digitally signed, or under electronic verification code, take
5) In case the Return is not copies)
the print of ITR-V form (two
duly signed and verified by Ordinary Pose or Speed post
6) Send one copy ITR-V form address
of the Return to the following
within 120days from the date of filing
Income Tax Department, CPC
Post Bag No. 1
Electronic City Post Office
Bengalure-560100
Karnataka

18.12 MERITS OF E-FILING

1. Accessibility of Past Data applications

easily access past data while filing returns. Most e-filing
The assessee can time of filing subsequent
store data in asecuremanner and allow for easy access at the
returns.
 18.8 Income Tax Law and Practice

2. Confidentiality
It is very difficult to see or alter the data submitted through e-filing. It
security than manual filing since one's data is not accessible to anyone eitherprovides
by beter
by chance. There is probability of the details of income can fall in the wrong handsdesiingn or
of paper based returns. There is no such fear in case of e filing. Hencee
the confidentiality.
filing improvescase
3. Convenience

There is no time and place constraint in fling returns online. E-filing facility is available
all the time and one can file at anytime, anywhere and at his/her convenience.
4. Electronic Banking
There is convenience of direct deposit for refund and direct debit for tax payments. One
has the option to file now, pay later, decide what day to debit his/her bank account for
tax payment, among other convenience features. Assessee can get refund through Refund
Banker Scheme.

5. More Accuracy
E filing software has its own built-in validations and electronic connectivity is seamless and
minimizes errors considerably. Paper filing can be prone to erros. The software designed
for e filing is easy to feed the data and calculations can be carried out using that software
itself. This kind of arrangement minimizes the chance of errors in case of paper based
returns.

18.13 DEMERITS OF E-FILING

1. Complexity
Efiling may not be possible for all types of assesses. Certain tax forms may not be
available when using electronic tax filing programns, and some tax returns are not elig1bie
for e filing. Returns that cannot be electronically include returns with no taxable income,
returns that exceed from limits set by authorities.

2. Technological Issues
Since e filing requires technical knowledge regarding internet usage and e payuie
procedures, ordinary persons are facing alot of diffculties and they have to depend upon ti
technical person for submitting their returns. Generally flers who are not technologcal
savvy may find electronic tax filing and submission to be mnore confusing than paper hlhiy
 Return of Incone 18.9

18.14 PERMANENT ACCOUNT NUMBER

Permanernt Account Number is an alphanumeric code given in the form of alaminated card
to a person by the income tax department. It is mandatory when filing income tax returns, tax
deduction at source or any other communication with Income Tax department. It consists of
ten characters, It is used for the purpose of identification of the assessee. A person can have
only one PAN. According to Sec. 139A and rule 114 the following persons are under statutory
obligation apply for PAN.
1) Any person whose total income is exceeds the maximum exemption limit.
2) Any person whose sales or turnover or gross receipts are likely to exceed 2,50,000
in any previous year.
3) Any person who is required to furnish return under section 139 (4A). i.e. trust and
charitable institution.
4) Any other person as specifically notified by the Central Government.
Following are the transactions in which quoting of PAN ismandatory.
a) Purchase or sale of vehicle other than two wheelers,
b) Open an account with a bank or a co-operative bank.
c) To made an application for issue of a credit or debit card.
d) Opening of a demat account with a depository, participant, custodian of securities or
any other person with SEBI.
e) Payment in cash of an amount exceeding ? 50,000 to a hotel or restaurant against bill
at any one time.
f) Payment in cash of an amount exceeding ? 50,000 in connection with travel to any
foreign country or payment for purchase of any foreign currency at any one time.
OBJECTIVE TYPE QUESTIONS
 Up to 15.03.23 25% of 1,40,400 35

20.3 TAX DEDUCTED AT SOURCE

1ax Deducted at Source (TDS)is a measure to avoid tax evasion. It is computed where income
Can be computed in advance. It is computed based on accrual of income. The Income Tax
ACt insist the person who is making payment is responsible to deduct tax at source. Thus the
recipient will receive only the net amount (i.e gross amount minus TDS) and TDS deducted
will be deposited into the Government's treasury within the stipulated time.
There aretwo objectives of TDS, namely quicker realization of tax and effective realization
of tax. The Income Tax Act Sec. 192 to Sec.206 deals with the provisions relating to TDS.
Generally TDS is applicable under income from salary, interest on securities, interest other
than interest on securities, dividends, winning from lotteries, winnings from TV shows etc.
20.3.1 Features
20.3.2 TDS Rates
Threshold Rate of
S.
No.
Section Nature of Payment Limit TDS
Avg. rate
192 |Payment as salary R 2,50,000 p.a. of tax
Premature withdrawal from 10%
2 192A 50,000 p.a.
|employee's PF
3 193 Interest on securities R5,000 p.a. 10%
10%
4 194 Dividend on shares 5,000p.a.
R50,000 p.a. for Sr.
194A |Interest from banking / deposit citizen, 40,000p.a. for 10%
with P.0 others

6 194B Winning from lottery, Cross 10,000 p.a. 30%

word puzzle
7 194BB Winning from horse race 10,000 p.a. 30%

194C Payment to contractor/ sub R 30,000 per contract or 1%

Contractor R 1,00,000 in aggregate
9 194D Insurance commission 15,000 p.a. 5%
Payment of Rent for land, 10%
10 194-I R 2,40,000 p.a. .
building or furniture
Payment of Technical service 2%
11 194J(a) fee 30,000p.a.
10%
12 194J(b) Payment of Professional fee R5,000
Dividend on units of mutual
13 194K R5,000 10%
fund
|Cash withdrawal exceeding 2% on amount
R1crore in a FY from bank 71 crore p.a. exceeding
14
or P.0. crore
194N Cash withdrawal exceeding More than 20 lakh but
R 20lakh in a FY frombank |less than or equal to 2%
or P.0. and who has not 1crore
furnished the return for 3 AY. More than 1crore 5%
Payment by a buyer (whose 01% of
turnover inlast FY exceeds amount
15 194Q R 10 Cr.)toany resident seller
7 50 lakh
exceeding
for purchase of goods 50 lakh